CROMPTON

Greaves Eyes Q4 Revival After Weather-Led Dip in Consumer Durables

reported a muted Q2FY26, with weather-related softness in cooling products and ECD offset by strong gains in solar, lighting, and Butterfly Gandhimathi. Despite margin pressure, long-term fundamentals and growth visibility remain intact. - Core Segment Performance: Revenue rose 1.1% YoY with 3% volume growth. ECD declined 1.6% YoY due to weak summer demand and subdued sentiment. TPW fans remained under pressure, while BLDC fans saw strong e-commerce traction. Margins contracted 260 bps YoY due to higher ad spends and operating leverage. - Appliances & Kitchen Portfolio: SDA grew in double digits, driven by festive campaigns and new launches. LDA declined sharply due to weak demand for air coolers and water heaters. Kitchen products maintained momentum, supported by GST cuts and seasonal demand. - Solar & Rooftop Expansion: Solar pump revenue hit ₹92 crore, with mid-teens growth and strong execution across states. Crompton executed ₹372 crore in orders, installed ~60 MW capacity, and commissioned 12,000+ units. Rooftop solar debut was strong, with ₹500 crore order book including major wins in Telangana and Andhra Pradesh. - Lighting & B2B Projects: Lighting revenue grew 3.1% YoY, with high-teens volume growth. B2B demand was led by high-mast and indoor lighting, with marquee projects like JSW Steel and Chennai Municipal Corp. B2C growth came from ceiling, street, and flood lights, with new products contributing mid-teens share. - Butterfly Gandhimathi Recovery: BGAL posted 14% YoY revenue growth, led by core categories and premium offerings. EBIT margin expanded 90 bps YoY to 7.5%, supported by cost optimization and strong festive demand. The Idea First premium range gained traction across channels. Despite near-term weather disruptions, Crompton’s diversified portfolio, solar scale-up, and Butterfly synergies position it for a Q4FY26 rebound. At 28x FY27 earnings, the stock offers long-term value upside