Havells India Results Analyzed

Key Points

• Q2FY26 profits jumped 16.5% compared to last year.
• Revenue increased by 5.2%, but down 12% sequentially.
• Ebitda rose to ₹442 crore, a year-on-year increase.
• Lloyd AC sales weakened due to excess channel inventory.
• Brokerages cut price targets for Havells India stock.
• Stronger growth expected in the second half of FY26.

Havells India announced its financial results for the second quarter of the fiscal year 2026 (Q2FY26) on October 17th, 2025. This is important information for anyone invested in or following the company.

At the time of the announcement, the company’s stock price was down 1.93% at ₹1,462.4 per share. Meanwhile, the broader BSE Sensex was up 0.38%. These changes highlight the overall market sentiment during the report’s release.

Financial Highlights: The company reported a significant increase in net profit, rising by 16.5% compared to the same period last year, reaching ₹317 crore. However, this was a decrease of 8.8% compared to the previous quarter. This fluctuation needs careful examination.

Revenue for Q2FY26 rose by 5.2% to ₹4,779.33 crore. However, on a quarter-by-quarter basis, revenue dropped by 12%. This indicates a shifting market dynamic that requires constant monitoring.

Earnings before interest, tax, depreciation, and amortization (Ebitda) stood at ₹442 crore, up from ₹380 crore the previous year. This demonstrates operational efficiency and improved profitability.

Challenges and Trends: The company’s summer product sales were weaker than expected. Specifically, the Lloyd brand, which sells fans and air coolers, faced challenges primarily due to excess inventory in the distribution channels and changes in government taxes (GST).

Brokerage Views: Several brokerages have adjusted their outlook on Havells India. Nuvama Institutional Equities downgraded its price target to ₹1,790, while JM Financial Institutional Securities lowered its target to ₹1,750, both maintaining a “Buy” rating. These adjustments reflect cautious expectations about the company’s near-term performance.

Cables & Wires Performance: The cables and wires business grew by 12% year-over-year, but this was below expectations and compared to other competitors. This highlights areas needing attention and strategic improvements.

Lloyd Brand Situation: Lloyd’s sales decline was better than initially feared, decreasing by 19%. However, the brand remains in a turnaround phase, meaning the company is still working to improve its performance. This requires sustained effort and innovation.

Inventory Normalization: As of January 2026, new regulations on air conditioning efficiency will be implemented. This is expected to lead to a decrease in air conditioner production, helping to clear out excess inventory in distribution channels by the third quarter.

Future Outlook: Management anticipates stronger growth in the second half of FY26, driven by increased business-to-business (B2B) sales, international expansion opportunities, and improved profitability through cost-cutting and offering premium products.

“Ultimately, understanding Havells’ performance allows for informed investment decisions and strategic planning within the broader Indian industrial landscape.”