Havells India Q1 FY27 Results (NSE: HAVELLS)
Signal: Margin pressure
The read
Revenue grew 19.5% YoY on a high base, but gross margin collapsed 640bps due to input cost surge, and Lloyd losses widened sharply — PAT fell 16.5% YoY, continuing a trend of profit contraction in 2 of the last 3 quarters (prior Q4FY26 PAT grew 39.6% but on an exceptional base). The thesis hinges on whether Cables growth sustains and whether Lloyd can stem losses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,518.19 Cr | 19.5% | -71.1% |
| EBIT | ₹399.75 Cr | -16.6% | |
| Net profit | ₹290.38 Cr | -16.5% | |
| EPS | ₹4.63 | -16.6% | |
| EBIT margin | 6.1% |
P&L walk
Revenue grew 19.5% YoY driven by Cables (+27%) and Renewables (+236%), but gross margin compressed sharply as raw material cost rose to 61.7% of revenue vs 55.3% a year ago, amplifying the impact of rising A&P spend (+100% YoY) and deeply negative Lloyd PBIT (-₹56.3 Cr vs -₹20.9 Cr). EBITDA margin fell 280bps to 8.0%. PAT dropped 16.5% YoY to ₹290 Cr, in line with operating decline as other income was flat and tax rate was stable.
Segments
Cables remained the largest profit contributor at ₹254.5 Cr (+4.9% YoY), but Lloyd Consumer turned from a -₹20.9 Cr loss to a -₹56.3 Cr loss, dragging total segment result by -13.4% YoY. Renewables revenue surged 236% YoY to ₹314 Cr but PBIT margin fell to 2.7% from 12.0% a year ago, likely due to scale-up costs. Standalone vs consolidated divergence is marginal — consolidated PAT is only ~₹8 Cr lower than standalone, confirming Lloyd losses are the primary group-level drag.
Key positives
- Cables revenue grew 27% YoY to ₹2,456 Cr, sustaining double-digit growth for 5 of last 6 quarters.
- Renewables revenue surged 236% YoY to ₹314 Cr, reflecting successful scale-up in solar/EVSE segment.
- Employee cost grew only 6.4% YoY vs revenue growth of 19.5%, yielding 25bps margin tailwind.
- Finance cost declined 20.3% YoY to ₹7.46 Cr, reflecting negligible leverage.
Key concerns
- Gross margin compressed ~640bps YoY as raw material cost rose to 61.7% of revenue from 55.3% — input-cost pressure was not fully passed through.
- Lloyd Consumer loss deepened to ₹56.3 Cr from ₹20.9 Cr a year ago, despite 14.7% revenue growth — margins remain deeply negative.
- PAT declined 16.5% YoY, continuing a pattern of profit contraction in 2 of last 3 quarters.
- A&P spend jumped 100% YoY to ₹286.5 Cr (4.4% of revenue vs 2.6%), pressuring EBITDA despite revenue growth.
Research and educational content only. Not investment advice.