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Havells India Limited — Q4 FY26
Havells India reported a moderate Q4 FY26 with mixed performance across segments.
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Havells India reported a moderate Q4 FY26 with mixed performance across segments. Cables and wires saw 14% value growth but only 6% volume growth, impacted by destocking in domestic wires and a high base. Consumer categories like fans and ACs faced volume degrowth due to a delayed summer and price hikes. Lloyd remained under pressure with lower revenues, though a new refrigerator plant was commissioned. The solar business (via Goldi Solar) drove strong growth in the 'other' segment, with a 48% revenue increase. Management highlighted calibrated price actions of 5%-20% across categories to offset raw material inflation, but warned that steep price increases could dampen consumer offtake. No specific FY27 guidance was given, citing global uncertainty. Key risks include sustained inflation impacting demand and competitive pressures in cables and wires from new entrants.
हैवेल्स इंडिया ने चौथी तिमाही में मिला-जुला प्रदर्शन दिखाया। केबल और तारों की बिक्री मूल्य में 14% बढ़ी, लेकिन असल मात्रा में सिर्फ 6% बढ़ोतरी हुई, क्योंकि घरेलू तारों की बिक्री धीमी रही और पिछले साल का आधार ऊंचा था। पंखे और एसी जैसे उत्पादों की बिक्री घट गई, क्योंकि गर्मी देर से आई और कीमतें बढ़ा दी गईं। लॉयड का कारोबार कमजोर रहा, हालांकि नया फ्रिज प्लांट शुरू हुआ। गोल्डी सोलर के जरिए सौर कारोबार में 48% की जबरदस्त बढ़ोतरी हुई। कंपनी ने कच्चे माल की महंगाई से बचने के लिए 5% से 20% तक कीमतें बढ़ाईं, लेकिन चेताया कि ज्यादा दाम बढ़ने से ग्राहक खरीदारी कम कर सकते हैं। अगले साल के लिए कोई अनुमान नहीं दिया गया। मुख्य जोखिम हैं: लगातार महंगाई और केबल-तारों में नई कंपनियों से प्रतिस्पर्धा।
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Read Transcript →Quarter Snapshot
Cables & Wires Volume Growth
6%
+6% YoY
Volume growth in cables and wires segment was 6% YoY, with industrial cables outperforming domestic wires.
Cables & Wires Value Growth
14%
+14% YoY
Value growth of 14% in cables and wires, implying ~8% blended price increase.
Solar Business Revenue Growth (Other Segment)
48%
+48% YoY
Other segment (primarily solar) grew 48% YoY, driven by Goldi Solar investment and capacity expansion.
Price Hike Range Across Categories
5%-20%
N/A
Calibrated price increases of 5%-20% implemented across product ranges to offset raw material inflation.
What Changed vs Last Quarter
NEW
New R&D center investment over next 2-2.5 years
Significant investment in a new R&D center, with spending spread over the next two to two and a half years.
NEW
No major new capex in Lloyd segment
Management indicated no major new capital expenditure planned for the Lloyd segment in the near term.
UPDATED
Capex of INR 800 crore in FY27 for cables and wires
Major capex of INR 800 crore planned for cables and wires capacity expansion in FY27, with new capacities coming online by end of FY27 or early FY28.
DROPPED
RAC price hike of 5-10% in Q4
Management indicated a 5-10% price increase for room ACs in the current quarter to offset cost pressures.
DROPPED
Channel inventory normalization by March 2026
Management expects channel inventory for cooling products to normalize by March 2026 as the summer season begins.
NEW RISK
Steep price increases may dampen consumer demand
Management acknowledged that sharp price hikes across categories could negatively impact consumer offtake, especially if inflation persists.
NEW RISK
Volume degrowth in consumer categories due to delayed summer
Fans, ACs, and water coolers saw volume degrowth in Q4 due to a delayed summer and pre-buying in Q3 from BEE norm changes.
NEW RISK
New entrant in cables and wires could pressure pricing
An analyst raised the possibility of a large cement player entering the housing wire market, which could increase competitive pressure on pricing and market share.
NEW RISK
Lloyd profitability remains weak despite large capital deployed
With ~INR 4,000 crore invested in Lloyd, the segment is barely generating profitability, and management offered no clear timeline for return improvement.
RISK GONE
Copper price volatility and channel destocking
Sharp copper price movements could lead to channel destocking and volume moderation in wires and cables.
RISK GONE
Margin pressure from commodity inflation
Rising commodity costs may compress margins if price hikes are not fully passed through, especially in ECD and fans.
RISK GONE
Weak demand in cooling products
A weak summer season could lead to lower-than-expected sales of RACs and fans, impacting Lloyd's performance.
RISK GONE
US tariff impact on cable exports
US tariffs have reduced demand for cable exports, which were a growth driver last year.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25
Switchgear EBIT margins expected to recover to 23-24% from current 18% as plant relocation and mix issues resolve.
Mentioned in Q3 FY25, Q4 FY25
Total capital expenditure of approximately INR 2,000 crore planned over the next two years, including a new R&D center.
Mentioned in Q2 FY26, Q3 FY26
Management expects channel inventory for cooling products to normalize by March 2026 as the summer season begins.
Mentioned in Q2 FY25, Q4 FY25
Continued volatility in copper and other raw material prices, driven by global uncertainties, poses an overhang on margins, especially in cables and wires.
Mentioned in Q1 FY26, Q2 FY26
High inventory levels for ACs, fans, and coolers could take longer to clear than expected, impacting primary sales and working capital.
Fast read
Guidance and risk preview
Major capex of INR 800 crore planned for cables and wires capacity expansion in FY27, with new capacities coming online by end of FY27 or early FY28.
Management acknowledged that sharp price hikes across categories could negatively impact consumer offtake, especially if inflation persists.
View Risks →