Cables Shine for

HAVELLS

, But Margin Pressures Persist

posted a 14% YoY revenue growth in Q3FY26 to ₹5,588 crore, led by a stellar performance in its cables and wires segment. However, net profit grew at a slower pace of 8% YoY to ₹300 crore, impacted by ₹45 crore in exceptional charges related to labour law adjustments. While core demand remains healthy, segmental divergence and rich valuations suggest a balanced outlook. Cables and Wires Segment - Contributed 40% of total revenue, growing 32% YoY. - Accounted for 80% of incremental Q3 revenue. - Growth supported by price hikes and 20% volume growth. - Capacity utilisation: 90–100% for cables, 65–70% for wires, indicating room for further expansion. Lighting and Lloyd Consumer - Lighting revenue declined 3.5% YoY; EBIT margin fell from 14.6% to 11%. - Lloyd Consumer revenue dropped 5.6% YoY, hit by competition and pricing pressure. - Channel inventory normalization expected by FY26-end. - Lighting segment likely to remain soft due to pricing challenges. Capex and Strategic Investments - ₹1,200 crore capex in 9MFY26, primarily for cables and wires capacity expansion. - Major Lloyd Consumer capex completed in FY26. - New R&D centre commissioned to support innovation. - Capex expected to taper post FY26, improving cash flow visibility. Financial and Valuation Metrics - EBIT margin improved to 9.7% in Q3FY26, up from 6.9% in Q3FY24. - Stock trades at 43x FY27 estimated earnings, reflecting strong investor sentiment. - Commodity cost increases must be passed on; margin tracking remains key. - Management remains optimistic on volume-led growth in core segments.