Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue: ₹879 crores, representing 25.2% year-on-year growth
  • Gross Margin: 29%, impacted by input cost pressures
  • EBITDA: ₹57 crores, showing 49.7% year-on-year growth
  • EBITDA Margin: 6.5%, expanding by 106 basis points
  • PAT: ₹27 crores, more than doubling year-on-year
  • Working Capital: 34 days

H1 FY27 Performance:

  • Revenue: ₹1,829 crores, representing 24.3% year-on-year growth
  • Gross Margin: 29.4%
  • EBITDA: Growth of 46.9% year-on-year (absolute amount not specified)
  • EBITDA Margin: 6.7%, expanding by 104 basis points
  • PAT: ₹59 crores, showing approximately 100% growth

Segment-wise Performance

Lighting and Switchgear Business:

  • Revenue: ₹329 crores, growing 25.7% year-on-year
  • Consumer Lighting: Double-digit growth with continued traction in premium products
  • High-value looms: Consistent at 66% of loom mix
  • Professional Lighting: High-single-digit growth
  • Wires: More than doubled year-on-year
  • Switchgear and Switches: High-double-digit growth

Electrical Consumer Durables (ECD) Business:

  • Revenue: ₹550 crores, growing 24.9% year-on-year
  • Fans: High-double-digit growth, outperforming industry with market share gains
  • BLDC Fans: Growing approximately 26% year-on-year, representing 30% of ceiling fan mix
  • Premium Products: Approximately 40% of fan mix
  • New Products: Contributing more than 30% of fans revenue
  • Appliances: Double-digit growth led by water heaters and garment care segments

Operational and Strategic Updates

Pricing Strategy:

  • Implemented price increases of 3-6% across various categories in Q2
  • Additional approximately 3% price increase implemented in October 2026
  • Price coverage of inflation ranges from 80-100% across different categories

Distribution Expansion:

  • Direct-to-market (DTM) model expanded across Madhya Pradesh, Chhattisgarh, and Jharkhand
  • Service operations taken over for Punjab and Nagpur region
  • Digital channels maintained healthy momentum with high-double-digit e-commerce growth
  • Quick commerce contributed approximately 15% of digital revenue, growing almost 100% year-on-year

Product Innovation:

  • R&D spend: 0.8-0.9% of turnover
  • New product success rate: 90%+
  • Recent launches include Nixa Shield 6kA MCBs, Aero Silent (Red Dot Award winner), Ecotech Volt (battery backup fan), Aero O2 (oxygen-generating fan), Harrier Wall Fan (gesture control)

Cost Optimization:

  • Project Sanchay generated savings of approximately ₹13 crores in Q2 and ₹23 crores for H1
  • Full-year FY26 savings were approximately ₹70 crores

Hyderabad Facility:

  • Capacity utilization: 40% on single shift
  • Product mix: 75% PPW (Pedestal and Wall fans), 20-25% ceiling fans
  • Expected margin improvement: 20-30 basis points at steady state

Management Commentary and Outlook

Challenges:

  • Persistent commodity inflation in copper, aluminum, and crude-linked materials
  • Global and geopolitical uncertainties affecting supply chain visibility
  • Input cost inflation not fully offset despite price increases

Strategic Focus:

  • Premiumization and innovation across all categories
  • Portfolio diversification and expansion
  • Strengthening consumer engagement through Project Samvad (customer service enhancement initiative)
  • Maintaining disciplined investments while balancing market competitiveness

Growth Guidance:

  • Long-term aspiration: Trending towards double-digit EBITDA margin
  • Revenue CAGR guidance: More than 15% (previously guided 15%+)
  • Target working capital: Approximately 20 days in next 4-6 quarters