Havells India Q2 FY27 Earnings Call — Analysis (NSE: HAVELLS)
Havells delivered 35% YoY revenue growth in Q2FY27 driven by strong volume traction across cables and switchgear, while margins were partially dampened by aluminium price swings and off-season Lloyd under-absorption.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Revenue Growth 35% ( +35% YoY ) . New guidance — FY27 fy27 capex program ₹14 billion . New story: Distribution Pivot to Pull-Led Model .
Results
Revenue grew 35% YoY with healthy volume growth across categories; EBITDA grew ~30% YoY supported by operating leverage, while cables contribution margin settled at ~15% for H1.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue Growth | 35% | +35% | yoy · Q2FY27 |
| EBITDA Growth | 30% | +30% | yoy · Q2FY27 |
| H1 Cables Contribution Margin | 15% | none · H1FY27 · Broadly in line with long-term average | |
| Switchgear Contribution Margin | 38%-39% | sequential · Q2FY27 · Returning to normalized 38%-40% range | |
| FY27 Capex Plan | ₹1,400 Cr | none · FY27 · Mainly for cables, wires, and R&D centre | |
| Lloyd Revenue | ₹615 Cr | sequential · Q2FY27 · Down from ~₹1,460 Cr in Q1 due to off-season RAC |
Guidance
Management guided that overall capex for FY27 will remain around ₹1,400 Cr, and the full cables expansion (focusing on MV/EHV) will come on stream over the next 18 months.
What management committed to
- Cables [MV and EHV] expansion is pretty much on track and in next 18 months, the full expansion will be on stream. — Q4FY28
- We are retaining our estimate of about INR14 billion [₹1,400 Cr] capex in FY27, largely for cables, wires, and R&D centre. — INR14 billion, FY27
- In this [third] quarter, certain price hikes will have to be taken... product to product, between 5% to 7%. — 5% to 7%, Q3FY27
- RAC continues to be the large part of the business, close to almost 75%. And hopefully, over a period of time, we want to bring [Lloyd RAC revenue share] to around 60% with growth in the non-RAC products. — around 60%, over a period of time
Key themes
Broad-based volume growth and calibrated pricing
How the narrative shifted
- Raw Material Volatility & Pricing Pass-Through: Management demonstrates pricing power via calibrated hikes across categories to offset sharp RM increases, despite quarterly cable margin compression from aluminium swings.
- Distribution Pivot to Pull-Led Model: The company has completed a 6-9 month transition across Lloyd and Havells from scheme/push sales to organic consumer pull, stabilizing channel health.
- Cables and Wires Capex & Mix Shift: Investments are focused on higher-value Medium and Extra High Voltage underground cables to capture domestic and export growth opportunities.
- Renewables Scaling via Brand and Channel: Havells positions its solar business as an integrated branded kit play using outsourced manufacturing (Goldi Solar) rather than capital-intensive module fabrication.
Operational commentary
- Underground cables expansion focusing primarily on Medium Voltage (MV) and Extra High Voltage (EHV) is scheduled to be fully on-stream within the next 18 months.
- Transitioned distribution model to a consumer pull-led structure rather than scheme/push-led across Lloyd (started Oct-25) and Havells (started Jan-26), reducing excess channel inventory.
- Renewables segment scaled to ~₹300 Cr per quarter through branded kits and channel integration via an outsourced manufacturing tie-up with Goldi Solar.
- Commissioned in-house refrigerator manufacturing facility in March 2026, which is scaling up and driving non-RAC product volume growth.
- Implemented price hikes ranging from 10% to 25% over the trailing 12 months across categories to counter raw material inflation; further 5%-7% price increases planned in selective categories in Q3FY27.
Analyst Q&A
Q. What is the peak revenue and margin trajectory expected from the renewables business?
Declined to provide peak revenue or margin guidance, stating the segment is developing and focus remains on building brand and distribution stickiness rather than treating it as a commodity business.
Q. What is the timeline for Lloyd to turn profitable on an annual basis?
Refused to give specific timeline guidance, reiterating that investments in brand and channel will continue while striving for medium-term profitability.
Q. How will Havells defend against new competition in wires like Crompton and Ultravolt?
Explained that new entrants typically capture share from unorganized players, and Havells will rely on deep distribution relationships, product innovation, and influencer management to protect market share.
Research and educational content only. Not investment advice.