Havells India Ltd. FALL 6% AS MARGIN PRESSURE

Havells India shares declined 6% on Friday after the company reported margin pressure in the September quarter of FY27. Global brokerage Nomura also lowered its price target on the stock by more than 9%. The electrical equipment and consumer durables manufacturer reported a 35% year-on-year increase in revenue for the second quarter of FY27, driven by growth across all business segments. Demand remained resilient despite inflationary pressures, while price hikes helped the company offset higher input costs across much of its portfolio. However, operating margins contracted by 30 basis points year-on-year, primarily due to volatility in aluminium and copper prices in the cables and wires (C&W) segment. The Lloyd business also continued to face raw material inflation and seasonal under-absorption of costs. Nuvama Institutional Equities cut its FY27 earnings per share (EPS) estimate by 6%, citing expectations of higher losses at Lloyd. The brokerage reduced its price target by more than 11% to Rs 1,430 but maintained its 'Buy' rating. Meanwhile, Nirmal Bang Equities retained its 'Hold' rating while marginally raising its price target to Rs 1,190 from Rs 1,157. The brokerage expects volume growth in the cables and wires segment, improved profitability in switchgear and expansion in renewables to support the company's growth. However, continued input cost volatility remains a key concern. Havells has implemented cumulative price hikes of over 30% in its cables and wires segment over the past 12 months. Management indicated that further product-specific price increases of around 5–7% may be necessary if raw material inflation persists.