Havells share price drops 6% despite rise in Q4 PAT; what factors are weighing down the stock?

Havells India's share price lost 6% during the intraday trading session on Thursday, April 23, even though the company posted a 40% rise in its March quarter net profits, as investors focused on the falling EBIDTA margin and contracting segmental revenues in certain portions of the business.

Havells share price dropped 6.2% to its intraday low level of ₹1,265 during the early trading hours on Thursday, April 23, compared to ₹1,348.70 at the previous stock market close, according to NSE data.

As of 10:18 am, Havells India shares were trading 6.24% lower at ₹1,264.60 near its day’s low level as of the morning market session, compared to the previous closing price on NSE.

Factors weighing down Havells India stock

Although Havells India’s revenues for the quarter witnessed a rise, but the company’s EBITDA (earnings before interest, tax, depreciation and amortisation) margin contracted to 10.9% in the March quarter, compared to 11.6% in the same period a year ago.

The company’s filings also showed that the operational level EBITDA witnessed a 4.4% fall in the fourth quarter to ₹728 crore, compared to ₹761 crore in the same quarter of the previous financial year.

On the technical front, the Relative Strength Index (RSI) of the 14-day average dropped under 30 in the oversold territory after the opening bell on Thursday, triggering high volume losses for the company’s stock. The trading volumes surged past 3 million shares across both stock exchanges on April 23.

What experts say

Analysts from CLSA said that Havells India reported weak Q4 results with EBITDA declining below the estimates and a soft rise in overall quarterly revenues due to cables & wires business benefitting from the higher commodity prices and renewables business gaining from solar power.

“Unseasonal rains, slow onset of summer and pre-buying have impacted cooling products, but the low base and a harsher summer augur well for Q1 FY27 growth,” said the experts.

Japanese investment giant Nomura Group experts also said that the upcoming summer season is expected to fuel the growth recovery, with operating margins likely to witness improvement amid cost pressures.

“Rising competitive intensity from new entrants in Cables and Wires is likely to keep margins under pressure,” said Citibank analysts highlighting the concerns for the upcoming quarters.

Havells India Q4 results

Havells India announced its January to March quarter results for the financial year ended 2025-26 on Wednesday. The company recorded a nearly 40% rise in its net profit to ₹723.39 crore in the fourth quarter, compared to ₹517 crore in the same quarter of the previous fiscal year.

The company’s revenues from core operations rose 2.47% to ₹6,705.20 crore in the March quarter, compared to ₹6,543.56 crore in the same period a year ago, according to the consolidated financial statements.

The Q4 results also showed that the company’s income from Electrical Consumer Durables dropped 2% to ₹976 crore, compared to ₹996 crore a year ago. Along with this, the Lloyd Consumer business segment also recorded a 19% fall in its revenues to ₹1,514 crore, compared to ₹1,870 crore in the same quarter of the previous year.

Havells India’s board of directors also recommended a final dividend of ₹6 per equity share with a face value of ₹1 apiece for the fiscal year ended 2025-26. This means every eligible shareholder will receive a ₹6 per share dividend payment up to 24 hours ahead of the pre-determined record date of the issue.