Crompton Greaves Consumer Electricals Limited announced its Q2 FY26 results, showcasing a stable performance despite extended monsoons impacting cooling product sales. Strong traction in pumps, small domestic appliances, and Butterfly products partially offset the challenges. Revenue remained broadly stable, with strategic investments continuing to drive long-term growth. The company is also focused on expanding into new categories like solar rooftop. Key initiatives include optimizing manufacturing costs and long-term incentive plans.
Financial Performance Highlights
Crompton’s Q2 FY26 consolidated revenue stood at ₹1,916 Cr, a slight increase from ₹1,896 Cr in Q2 FY25. EBITDA margin was 8.3%, impacted by subdued sales due to weather conditions. PBT for the quarter was ₹123 Cr.
Segment Performance
The ECD (Electrical Consumer Durables) segment experienced a de-growth of 1.5% YoY due to weather disruptions. Pumps and Small Domestic Appliances (SDA) delivered strong performance, offsetting some of the decline. The Lighting segment continues stable performance, driven by LED volume growth. Butterfly delivered strong Q2 performance with month-on-month revenue growth.
Key Growth Drivers
The company is focused on several key growth drivers:
- Premiumization of products: Increased premium saliency in Fans to 25.4%.
- Go-To-Market Excellence: Alternate channel saliency at 20%.
- Brand Investments: All India print campaign for Fans.
- Innovation: Launched 89 New Projects across product lines.
Strategic Initiatives
Crompton is implementing several strategic initiatives to drive future growth:
- Baroda Restructuring: Improving efficiency by optimizing manufacturing costs, expecting payback in less than 2 years.
- Expanding Total Addressable Market: Reinforcing market leadership in core categories and foraying into emerging and new growth categories like Solar.
- Transforming GTM Approach: Embarking on a GTM transformation journey.
- Implementation of Long-Term Incentives (LTI) Plan: Aligning employee interests.
Solar Business
The company is experiencing strong momentum in the solar business. Solar Rooftop business announced foray this year with order book aggregating to about ₹500 Cr.
Source: BSE
