Havells India Limited – Investor Presentation Summary
Key Operational Highlights
- Strong business performance with growth in each category despite high inflation
- Consumption demand remained steady throughout the quarter
- Inventory days broadly stable at 72 days (TTM) compared to 81 days in Q2 FY26
- Working capital days improved to 44 days from 49 days year-on-year
Key drivers of operational performance:
Calibrated price hikes offset raw material inflation across most segments, while operating leverage helped offset softer contribution margins.
Segment-wise Performance
Switchgears: Revenue ₹782 crores, up 31.3% YoY | Contribution margin 38.1% vs 37.3% YoY
Cables: Revenue ₹2,999 crores, up 47.9% YoY | Contribution margin 13.9% vs 17.7% YoY
Lighting & Fixtures: Revenue ₹449 crores, up 7.0% YoY | Contribution margin 26.6% vs 30.5% YoY
Electrical Consumer Durables: Revenue ₹1,072 crores, up 10.7% YoY | Contribution margin 22.8% vs 21.7% YoY
Renewables: Revenue ₹329 crores, up 147.8% YoY | Contribution margin 13.5% vs 10.5% YoY
Lloyd Consumer: Revenue ₹615 crores, up 28.4% YoY | Contribution margin 2.6% vs 1.7% YoY
Explanation of significant changes in segment performance:
Cables growth led by commodity-linked price increases and mix towards higher sized cable. Renewables continued to scale faster with improved product mix. Switchgear growth supported by domestic demand pickup and recovery in exports post Q1 disruption. Lloyd growth through mix of volume and price hikes.
Financial Highlights
Revenue: ₹6,417 crores (Q2 FY27)
EBITDA: ₹576 crores | Margin: 9.0%
PAT: ₹353 crores | Margin: 5.5%
EPS: Not Specified
YoY/QoQ comparison: Revenue up 34.6% YoY, EBITDA up 30.5% YoY, PAT up 11.1% YoY
Drivers of financial performance: Healthy EBITDA growth as operating leverage offset softer contribution margins. PBT growth relatively moderated as Q2FY26 included ₹45.27 crores one-time gain on sale of land & building of Faridabad facility.
Key Risks: Raw material price volatility (particularly aluminum), inflation pressure, under-absorption in Lloyd segment.
Geographical Revenue Split
Domestic vs Export/Regional Revenue: Not Specified
Balance Sheet Snapshot
Net Debt/Equity: Not Specified (Cash positive position)
Reserves: ₹9,739 crores (Other Equity)
Current Assets: ₹7,293 crores | Current Liabilities: ₹4,251 crores
Working Capital/Leverage Metrics: Current Ratio 1.7, Debtor Days 12, Inventory Days 72, Creditor Days 40
Financial Health Insights: Strong balance sheet with ₹1,190 crores cash & cash equivalents, inventory higher than March 2026 mainly in Cables in line with revenue growth and commodity prices.
Capex & Cash Flow Health
Capital Expenditure: ₹654 crores (H1FY27) | Full year expected ₹1,400 crores
Free Cash Flow: Not Specified
Operating Cash Flow: Negative ₹160 crores (H1FY27)
Net Debt Movement: Not Specified (Cash reduced from ₹2,351 crores to ₹1,190 crores in H1FY27)
Investment Rationale: Primarily towards capacity addition in Cables and investment in new R&D center
Strategic & R&D Initiatives
Investments in Innovation: Capacity expansion in cables, new R&D center development
Expected impact on growth: Not Specified
Strategic Rationale: Supporting future growth through capacity enhancement and technological advancement
Industry Trends & Business Environment
Macro/Industry Trends: High inflation environment, commodity price volatility, steady consumption demand
Impact on Company: Raw material inflation affecting margins, particularly in cables segment; price stabilization helping lighting segment
Management Commentary & Growth Outlook
Strategic Outlook: Strong business performance with growth in each category; consumption demand remained steady despite high inflation
FY Guidance: Capex of ₹1,400 crores for full year
Market Share Targets: Not Specified
Risks and Opportunities: Factors such as changes in government regulations, tax regimes, economic developments, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints