Havells India Slumps to Fresh 52-Week Low of ₹1,002.80 as Margin Squeeze Overshadows Q2 Revenue Growth

Shares of electrical goods and appliances maker Havells India Ltd slipped roughly 6% to register a new 52-week low of ₹1,002.80 on the stock exchanges, following the release of its financial results for the quarter ended September 30 (Q2FY27).

Despite delivering robust top-line momentum, the company failed to ease investor worries over rising operational expenses, segment-level profitability degradation, and drag from its consumer durables arm.

Q2 Earnings: Revenue Surges, Margins Stumble

On a consolidated basis, Havells reported a 34.6% year-on-year rise in revenue from operations to ₹6,431.99 crore, compared to ₹4,779.33 crore in the corresponding period of the previous fiscal. Net profit during the quarter climbed 9.7% year-on-year to ₹349.22 crore from ₹318.28 crore.

However, earnings before interest, tax, depreciation, and amortisation (EBITDA) rose at a slower pace of 30.8% to ₹573 crore, leading to an operating margin contraction to 8.9% from 9.2% a year ago.

Total expenses surged 34.5% year-on-year to ₹5,991.98 crore, driven primarily by an escalation in raw material and component costs, which jumped to ₹3,447.25 crore from ₹2,686.72 crore in the prior-year period. Employee benefit expenses also climbed to ₹553.89 crore against ₹478.77 crore. Other income fell sharply to ₹32.61 crore from ₹86.26 crore, which previously included a one-time gain of ₹45.27 crore from a property sale in Faridabad.

Segment Breakdown: Growth Drivers and Margin Pressures

Key Segment Highlights for Q2FY27:

• Cables and Wires: Remained the company’s largest division, logging revenue growth of 47.9% year-on-year to ₹2,998.90 crore. However, segment profit stood at ₹304.26 crore, shrinking the segment's operating margin to about 10.1% compared to 13.7% in the previous-year period due to volatile metal prices and heightened market competition.
• Switchgears: Delivered strong traction, with revenue advancing 31.3% to ₹781.74 crore and segment profit increasing to ₹198.46 crore from ₹132.81 crore.
• Electrical Consumer Durables (ECD): Clocked a 10.7% revenue growth to ₹1,072.11 crore, with segment profit coming in at ₹66.95 crore.
• Lloyd Consumer: Continued to weigh on operational performance as margin recovery lagged and the segment absorbed elevated brand investments and seasonal volume pressures.
• Renewables: Carved out as a standalone segment from April 1, 2026—comprising solar, solar pump, and EVSE solutions—continuing to scale over a low base.

What Is Worrying Dalal Street?

The market's sharp reaction underscores persistent headwinds in Havells' core profitability engines. While industrial demand and real estate execution have supported volume uptake in cables, fierce pricing competition from organized and unorganized players has eroded contribution margins.

Simultaneously, the Lloyd appliances portfolio has yet to turn consistently profitable on an operating level, forcing the business to absorb higher marketing and promotion expenses to defend market share.

Following the quarterly print, domestic brokerage Motilal Oswal Financial Services slashed its EBITDA estimates for Havells by approximately 5% for FY27 and 8% for FY28, pointing to sustained margin stress and ongoing losses at Lloyd. Analysts noted that until commodity pricing softens and consumer sentiment across appliances accelerates during festive and summer channels, re-rating triggers for the stock will remain subdued.

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