Havells India Q1 FY27 results: Net profit slips nearly 17% on rising A&P spends, revenue rises to ₹6,518 crore

The company said the doubling of advertising and promotion (A&P) spends resulted in a compression in profitability, even as the company reported strong revenue growth.

For Q1 FY27, the consumer electrical goods maker’s revenue from operations increased 19% year-on-year (YoY) to ₹6,518 crore as compared to ₹5,455 crore in Q1 FY26 as demand remained resilient despite inflationary pressures and West Asia war-related uncertainties.

On the operational level, Havells India’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹466 crore, marking a fall of 9.5% from ₹515 crore in the same quarter of the previous fiscal year.

The company’s EBITDA margin contracted to 7.15% in contrast to 9.45% YoY.

Havells India in a statement said Q1 FY27 witnessed a decent summer season, although the delayed onset limited the full benefit for cooling products.

The company stated that it undertook calibrated and staggered price hikes across categories to offset the impact of raw material inflation. It also stepped up and frontloaded brand-building efforts during the quarter, led by higher media investments, which are expected to normalise over the rest of the year.

Segment earnings

Havells India said its switchgear segment saw export disruptions due to the West Asia situation, although domestic demand remained stable during the quarter. The cables business continued to deliver strong growth, while the lighting segment witnessed a pickup supported by price stabilisation.

The company added that its electrical consumer durables (ECD) segment reported growth across categories, with consumer demand holding up despite price hikes. It also highlighted robust growth in the renewables segment, driven by favourable sector tailwinds, while Lloyd posted decent revenue growth with a continued focus on disciplined pricing.

Outlook

The consumer electronics firm said segment EBIT margins were materially impacted in the reporting quarter due to elevated A&P spends. However, with recent price hikes and a normalisation of A&P spending, the margin outlook remains positive, it added.

Havells India expects capex for the full year to be ₹1,400 crore, primarily towards capacity addition in cables and investment in a new R&D center.

Following the earnings, Havells India shares tumbled 2.5% to touch an intraday low of ₹1,141.20 apiece on the National Stock Exchange.