Havells India Limited – Investor Presentation Summary

Key Operational Highlights

  • Strong Q1 revenue growth as demand was resilient despite inflationary pressures & West-Asia war related uncertainties
  • Q1 experienced decent summer although delayed onset restricted full benefit for cooling products
  • Calibrated and staggered price hikes were undertaken across categories to offset raw material inflation
  • Havells stepped-up & frontloaded brand-building efforts significantly in Q1, led by media investments
  • Doubling of A&P spends led to compression in profitability despite strong revenue growth

Segment-wise Performance

Revenue Analysis (₹ crores):
  • Switchgears: ₹608 (Q1 FY27) vs ₹630 (Q1 FY26), -3.5% YoY - exports disrupted by West Asia situation, domestic demand stable
  • Cables: ₹2,456 vs ₹1,933, +27.0% YoY - continue to deliver strong growth
  • Lighting & Fixtures: ₹390 vs ₹374, +4.5% YoY - saw pickup with price stabilisation
  • Electrical Consumer Durables: ₹1,113 vs ₹993, +12.0% YoY - growth across categories as consumer demand held well despite price hikes
  • Renewables: ₹314 vs ₹94, +235.9% YoY - robust growth leveraging sector tailwinds
  • Others: ₹169 vs ₹153, +11.0% YoY
  • Lloyd Consumer: ₹1,460 vs ₹1,262, +15.7% YoY - decent revenue growth while maintaining disciplined pricing
Segment Results Analysis (₹ crores):
  • Switchgears: ₹127 (20.8% of NR) vs ₹148 (23.4%)
  • Cables: ₹255 (10.4% of NR) vs ₹243 (12.6%)
  • Lighting & Fixtures: ₹44 (11.4% of NR) vs ₹46 (12.4%)
  • Electrical Consumer Durables: ₹58 (5.2% of NR) vs ₹79 (7.9%)
  • Renewables: ₹8 (2.7% of NR) vs ₹11 (12.0%)
  • Others: ₹8 (4.7% of NR) vs ₹5 (3.3%)
  • Lloyd Consumer: (₹51) (-3.5% of NR) vs (₹20) (-1.6%)

Financial Highlights

Revenue: ₹6,510 crores (Q1 FY27)

EBITDA: Not explicitly stated

PBT: ₹401 crores (6.2% of revenue)

PAT: Not explicitly stated

EPS: Not explicitly stated

Margins:

  • OPM% (EBITDA/NR): 7.3% (Q1 FY27) vs 9.6% (Q1 FY26)
  • Contribution Margin Total: 18.3% (Q1 FY27) vs 19.7% (Q1 FY26)

YoY comparison:

  • Total Revenue: +19.7% YoY (₹6,510 vs ₹5,438)
  • PBT: -15.6% YoY (₹401 vs ₹475)
  • OPM: -230 bps YoY (7.3% vs 9.6%)

Drivers of financial performance:

  • Strong revenue growth across most segments
  • Material impact on margins from elevated A&P spends during Q1
  • Calibrated price hikes partially offsetting raw material inflation

Balance Sheet Snapshot

As of June 2026 (₹ crores):

  • Property, plant and equipment and intangibles: ₹5,875
  • Inventories: ₹5,016 (increase mainly in Cables)
  • Trade receivables: ₹723
  • Cash and cash equivalents: ₹291
  • Bank balances other than cash: ₹1,206
  • Total equity: ₹9,446
  • Trade payables: ₹3,152

Financial Ratios:

  • Current Ratio: 1.6 (June 2026) vs 1.8 (June 2025)
  • Debtor Days: 11 (Q1 FY27) vs 16 (Q1 FY26)
  • Inventory Days: 78 (Q1 FY27) vs 71 (Q1 FY26)
  • Creditor Days: 49 (Q1 FY27) vs 44 (Q1 FY26)
  • Net working capital days: 40 (Q1 FY27) vs 43 (Q1 FY26)
  • ROE%: 18.1% (Q1 FY27) vs 17.6% (Q1 FY26)
  • ROCE%: 23.5% (Q1 FY27) vs 23.7% (Q1 FY26)

Capex & Cash Flow Health

Capital Expenditure: Full year expected to be ₹1,400 crores, primarily towards capacity addition in Cables and investment in new R&D center

Cash Flow (Q1 FY27, ₹ crores):

  • Operating Net Cash Flow: (₹186)
  • Capex: (₹332)
  • Net Cash Flow from Investing Activities: (₹301)
  • Dividends paid: (₹376)
  • Net Cash Flow from Financing Activities: (₹368)
  • Net Cash Flow: (₹854)
  • Cash & Cash Equivalent at beginning: ₹2,351
  • Cash & Cash Equivalent at end: ₹1,497

Strategic & R&D Initiatives

  • Established 'Renewables' as separate Strategic Business Unit (SBU) to drive focused execution of energy transition agenda
  • Renewables SBU includes Solar, Battery Energy Storage (BESS), Solar Pumps and EV Chargers (EVSE)
  • Industry experiencing strong tailwinds in renewables segment
  • Steady state contribution margin for Renewables expected to be in range of 10-12%

Management Commentary & Growth Outlook

  • With recent price hikes & normalising A&P spends, margin outlook remains positive
  • The industry is experiencing strong tailwinds and Havells is well-placed to capture the opportunity in renewables
  • Segment EBIT margins were materially impacted by elevated A&P spends during Q1

Segment Realignment

The company realigned its reporting segments:

  • Water Purifier and Personal Grooming moved to Electrical Consumer Durables segment
  • Solar and Solar Pump formed new 'Renewables' segment
  • Past figures reported considering effect of realignment for comparative purposes

New Segment Structure:

1. Switchgears: Switchgears, Switches, Capacitors

2. Cables: Power Cables, Wires

3. Lighting & Fixtures: Consumer Luminaires, Professional Luminaires

4. Electrical Consumer Durables: Fans, Appliances, Water Heater, Air Coolers, Water Purifier, Personal Grooming

5. Renewables: Solar, Solar Pumps, EVSE

6. Others: Motors, Pumps

7. Lloyd Consumer: Air Conditioners, Refrigerator, Washing Machine, Television