Havells India Q2 revenue rises 35%, margins under pressure

Havells India Ltd (

) reported 34.6% YoY revenue growth to ₹6,432 crore in Q2FY27. Despite the strong top-line growth, EBITDA margin narrowed to 8.9% from 9.2%, highlighting the pressure on profitability. The market focused less on revenue growth and more on what is happening beneath the surface. Havells' cables business delivered nearly 48% revenue growth to ₹2,999 crore, but segment margins fell sharply as commodity movements and pricing dynamics weighed on profitability. Lloyd Consumer also remained a drag, reporting an EBIT loss of ₹105 crore, worse than the previous quarter. What matters is that revenue growth is being supported partly by commodity-linked price increases and mix changes, while earnings growth is not keeping pace. Consolidated EBITDA rose 30.8%, slower than revenue growth, indicating that higher sales are not fully translating into stronger operating leverage. The headline may miss the growing gap between growth and profitability. Havells continues to benefit from demand in cables, switchgear and renewables, with the renewables business growing 148% YoY. However, investors appear more concerned about margin recovery, competitive intensity in cables and wires, and the continued losses at Lloyd. These factors have already led some brokerages to reduce earnings estimates for FY27 and FY28. The key monitorables from here are raw material inflation, the company's ability to pass on higher costs, margin trends in the cables segment, and whether Lloyd can move closer to profitability. Revenue growth remains healthy, but sustained earnings improvement will depend on margin recovery rather than sales growth alone. View: Growth remains intact, but profitability is the bigger battleground. Until margins stabilize and Lloyd's losses moderate, investor sentiment may remain cautious. Disclosure: This post is for informational and educational purposes only and should not be construed as investment advice.