News

Havells India recently announced its Q2FY26 financial performance, which is a mixed bag with both positives and negatives. At 1:25 pm, Havells India's share price was trading at Rs 1,470, down 1.44 per cent from the previous close, following the company's financial results.

The second-quarter revenue (consolidated) of the company increased 5.3 per cent YoY to Rs 4,779 crore, marginally below expectations of Rs 4,899 crore.

Profit After Tax (PAT) grew 18.9 per cent year-on-year (YoY) to Rs 319 crore, higher than estimates of Rs 308 crore.

The EBITDA grew 17 per cent YoY to Rs 438 crore, short of expectations of Rs 465 crore, while the EBITDA margin increased 91 basis points to 9.2 per cent YoY, still short of estimates at 9.5 per cent.

a) Cables: The revenue increased by 12.4 per cent YoY, with better margins of 17.7 per cent.

b) Lloyd Consumer: Revenue fell 18.5 per cent YoY, with the margins falling to 1.7 per cent, impacted by significant under-absorption due to lower revenue and higher consumer offers to assist in secondary sales of air conditioners, owing to the weak summer, the financial release said.

c) Havells' summer products remain weak, affecting Lloyd's revenue, which declined due to higher channel inventory overhang and GST changes.

Havells India's half-yearly revenue stood at Rs 10,204 crore, down 1.2 per cent YoY.

Inventory days were at 81 from 69 YoY.

1) Nomura has kept its 'buy' rating on Havells India share price with a target price of Rs 1769.

2) Jefferies maintained its 'hold' rating but has cut the target price to Rs 1620 from Rs 1635, down 0.9 per cent.

3) Goldman Sachs has kept the 'buy' call, raising the target price to Rs 1740 from Rs 1720, up 1.2 per cent.

4) Citi maintained a 'neutral' rating, lowering its target price from Rs 1750 to Rs 1600, down 8.6 per cent.

Financial analysts had anticipated a better performance, pointing to weakness in summer products. The company's performance was marginally short of expectations, which resulted in a mixed reaction.

But though the current weakness, analysts expect a recovery from lower levels, fueled by better demand as well as strategic moves.