Havells India Limited hosted its Q1 FY27 earnings conference call on July 17, 2026. Management discussed resilient revenue growth despite inflationary pressures, driven by cooling products and a strong renewables segment. Increased advertising spends impacted profitability, but this is expected to normalize. The company highlighted a strategic focus on brand building and a shift towards a sell-out model across its businesses.
Havells India: Q1 FY27 Earnings Call Overview
Havells India Limited conducted its Q1 FY27 earnings conference call on July 17, 2026. The discussion, led by Chairman and Managing Director Mr. Anil Rai Gupta, provided insights into the company’s performance and strategic outlook. Senior management, including Mr. Rajesh Kumar Gupta (Group CFO) and Mr. Ameet Kumar Gupta, along with Mr. Rajiv Goel, participated in the call.
Financial Performance and Market Dynamics
The company reported strong revenue growth in the first quarter, attributed to resilient demand for cooling products and the positive impact of a decent summer, despite a delayed onset. Management acknowledged the challenges posed by significant raw material inflation, which necessitated calibrated and staggered price hikes across categories to offset the impact. Consumer categories demonstrated strength in absorbing these price increases.
The Renewables business has been classified as a separate segment and showed rapid scaling with robust revenue growth, leveraging sector tailwinds. Advertising spends saw a significant increase, more than doubling year-on-year, to bolster brand building efforts. While this front-loading impacted quarterly profitability, it is expected to normalize over the rest of the fiscal year, with an optimistic outlook on margins.
Segmental Performance and Strategic Initiatives
In the lighting segment, ASP declines have stabilized, with potential for price hikes due to electronics, and some volume growth is being observed.
The switchgear segment experienced disruptions from West Asia exports, impacting international sales which typically represent around 15%. The company anticipates a rebound in this segment in the upcoming quarter, with domestic demand remaining stable.
The renewables segment is strategically important, with a focus on residential, commercial, and industrial installations rather than utility-scale projects. Future growth is also expected from battery energy storage solutions and EV chargers.
For the Lloyd brand, volume growth in air conditioners is projected to be in single digits, with higher value growth due to price adjustments. Advertising spends for Lloyd are expected to remain elevated for the next few years to build a long-term premium image.
In the cables and wires segment, while domestic wires have shown good performance in contribution margins, the overall segment experienced flat volume growth. The company is focusing on a sell-out strategy over a sell-in model to gain market share. The cables business is seeing good growth, supported by capacity expansions.
Outlook and Guidance
Havells India maintained its stance of not providing specific full-year guidance due to market volatility but expressed confidence in a resilient growth momentum for the year. Price hikes implemented ranged from 5% to 20% across categories, with cables and wires seeing higher increases due to copper and aluminum costs. The company aims to stabilize contribution margins, with normalized margin levels expected.
Capital expenditure for FY27 is estimated at around INR1,400 crores, with a significant portion allocated to the cables and wires business and the new R&D center.
Source: BSE
