HAVELLS

📊 1. Financial Performance Snapshot Revenue declined by ~6% YoY to ₹5,455 crore. EBITDA dropped ~10% to around ₹520 crore; margin contracted to ~9.6%. Net Profit fell ~14–15% to ₹347–352 crore. 🔌 2. Business Segment Highlights Electrical Consumer Durables (ECD): Cooling products—from air conditioners to fans and coolers—faced demand contraction, down ~14%. Lloyd brand sales shrank ~34% YoY due to unseasonal rains and excess channel inventory. Switchgear Business: Delivered 9% YoY growth, supported by steady industrial and commercial demand. Cables & Wires Business: Strongest performer with ~27% YoY growth, driven by infrastructure expansion and new capacity. 🧭 3. Market Sentiment & Valuation Stock declined ~1–1.4% post-results as profit-taking kicked in. Valuation Snapshot: P/E multiple: ~66× ROE: ~17–18% Dividend yield: ~0.6–0.7% Brokerage views: Motilal Oswal: Rated Neutral with target reduced to ~₹1,680. Antique Broking: Maintained Buy but cut target to ~₹1,797. Analysts expect improved performance in H2 FY26, led by festive demand and cooling demand normalization. 🔄 4. Strategic Drivers & Outlook Cost discipline helped limit margin erosion. Lloyd inventory correction likely to take 1–2 quarters before stabilizing. Growth pivot: Company is leaning more into B2B segments like switchgears and cables, which showed strong performance. Key near-term catalysts: Upcoming festive demand seasonality (Diwali/Christmas). Clearance of excess channel stocks in the cooling portfolio. Infrastructure-led momentum supporting industrial product lines.