Crompton reported its Q3 FY26 results, showcasing improved performance with revenue growth driven by ECD and lighting segments. Consolidated revenue grew by 7.3% YoY. While EBITDA margin was impacted by commodity costs, disciplined spending and effective cost controls helped mitigate the impact. The company is seeing recovery in demand and is focused on premiumization and new product categories.
Financial Performance
Crompton Greaves Consumer Electricals Limited announced its financial results for Q3 FY26, highlighting a recovery in performance driven by revenue growth and improved margins. Consolidated revenue increased by 7.3% year-over-year.
Key highlights from the financial results include:
- Revenue growth primarily driven by the ECD (Electrical Consumer Durables) and Lighting segments.
- EBITDA margin impacted by increased commodity costs, partially offset by disciplined A&P spend and effective cost controls.
Segmental Performance
The company’s performance across different segments was noteworthy:
- ECD: Delivered 8% YoY growth, driven by strong performance in pumps and successful transition to BEE 2.0 in fans.
- Lighting: Recorded 7% YoY growth, propelled by ceiling lights, accessories, and new product development.
- Butterfly: Recorded revenue of Rs. 245 Cr, with Idea First Series contributing strongly. EBITDA grew by 17% YoY.
Strategic Initiatives and Future Outlook
Crompton is focused on several strategic initiatives to drive future growth:
- Expanding the Total Addressable Market (TAM) by reinforcing market leadership in core categories and venturing into new growth categories.
- Leveraging Crompton’s product and distribution strength in the wires and cables segment.
- Focus on premiumization, innovation, and digital enablement across the value chain.
The company is also emphasizing sustainable value creation through environmental, social, and governance (ESG) initiatives.
Operational Highlights
- Overall demand remained tepid with a brief lift from GST cuts and festive buying.
- Acceleration in solar and BEE transition led recovery.
- Strong lighting performance with industry-leading margins.
Wires & Cables
Crompton has strong brand equity to leverage shift towards organized players, deep insights into future needs of consumer durables space and strong distribution network.
Source: BSE
