Havells India Shares Tumble to 52-Week Low of Rs 1,002.80 on Margin and Lloyd Losses

Shares of electrical goods and consumer appliances major Havells India Ltd tumbled nearly 6% on Friday, touching a fresh 52-week low of ₹1,002.80 per share on the exchanges. The sharp sell-off followed the release of the company's financial results for the second quarter ended September 30 (Q2 FY27), which revealed that persistent margin compression and dragging consumer appliance operations continue to overshadow robust top-line performance.

While consolidated revenue from operations expanded by 34.6% year-on-year to ₹6,431.99 crore compared to ₹4,779.33 crore in the year-ago period, profitability metrics lagged growth across key operating segments. Consolidated net profit for the quarter rose by a modest 9.7% to ₹349.22 crore against ₹318.28 crore reported in Q2 of the preceding fiscal year.

Operating Margins and Cost Pressures

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 30.8% year-on-year to ₹573 crore. However, consolidated EBITDA margin narrowed to 8.9% from 9.2% in the corresponding period of the previous year.

The primary headwinds driving the operational contraction included:

• Rising Raw Material Costs: Total expenses climbed 34.5% year-on-year to ₹5,991.98 crore, led by a surge in raw material and component consumption costs, which rose to ₹3,447.25 crore from ₹2,686.72 crore.
• Cables and Wires Margin Contraction: While the cables and wires division remained the largest revenue generator—surging 47.9% to ₹2,998.90 crore—segment profit margin contracted to approximately 10.1% from 13.7% a year earlier amid rising competitive intensity and lower contribution margins.
• Persistent Losses at Lloyd Consumer: The consumer durables arm Lloyd continued to incur operational losses, limiting the consolidated profit upside despite aggressive festival channel stocking.

Brokerage Actions and Market Sentiment

Taking note of sustained margin friction, institutional brokerages moved to trim forward earnings estimates. Domestic brokerage Motilal Oswal Financial Services revised its EBITDA estimates downward by roughly 5% for FY27 and 8% for FY28, citing ongoing pressure on contribution margins across core categories alongside wider-than-expected drag from the Lloyd business.

For market participants on Dalal Street, the sell-off reflects a clear shift in investor focus from pure top-line acceleration toward margin defence and bottom-line delivery. With heavy ongoing capital expenditure commitments and input cost volatility, market watchers are awaiting proof of margin stabilization before committing fresh capital to the counter.

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