Havells India Q2 FY27 Results (NSE: HAVELLS)

22 Oct 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The key inflection is sequential margin recovery to about 8.9% from 7.2%, but the thesis remains a margin-repair story: Q2 revenue grew 34.6% YoY while gross margin compressed about 430bps and PAT grew only 9.7%; cables and renewables are carrying growth, whereas Lloyd remains structurally loss-making.

P&L walk

Consolidated revenue increased 34.6% YoY to ₹6,431.99 crore, but gross margin fell from about 35.0% to 30.7%; lower operating conversion limited EBITDA margin to 8.9% and PAT growth to 9.7%.

Segments

Cables drove the quarter with revenue of ₹2,998.90 crore, up 47.8% YoY, and segment result of ₹304.26 crore; Renewables revenue rose 147.8% to ₹329.16 crore, while Lloyd Consumer dragged the group with a ₹103.65 crore loss versus a ₹98.85 crore loss YoY.

Key positives

• Revenue from operations rose 34.6% YoY to ₹6,431.99 crore, with Cables revenue up 47.8% to ₹2,998.90 crore.
• Renewables revenue increased 147.8% YoY to ₹329.16 crore and segment result rose to ₹27.25 crore from ₹5.01 crore.
• EBITDA margin recovered to about 8.9% from approximately 7.2% QoQ as employee and other operating costs grew slower than revenue.
• Finance cost fell 48.0% YoY to ₹4.75 crore, supporting sequential PAT growth of 20.5%.

Key concerns

• Gross margin contracted about 430bps YoY to 30.7% despite revenue growth of 34.6%; the filing does not disclose the specific driver.
• PAT growth of 9.7% materially lagged revenue growth because operating conversion weakened and other income fell 62.2% YoY to ₹32.61 crore.
• Lloyd Consumer remained loss-making at ₹103.65 crore, with the loss widening from ₹51.02 crore QoQ and ₹98.85 crore YoY.
• H1 operating cash flow was negative at ₹156.87 crore despite H1 consolidated PAT of ₹638.93 crore, while inventory rose to ₹4,991.90 crore.

View original filing

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