Havells sales up 20% to ₹6,510 cr, profit down 15% as costs bite
Revenue growth driven by cables and Lloyd appliances, but raw material inflation and a near-doubling of ad spend squeezed margins. Net profit fell 15.3% to ₹298 cr. Lloyd operating loss widened to ₹51 cr.
— 5 earlier stories on Havells India Ltd. →What's new
- Standalone revenue rose 19.7% YoY to ₹6,510 cr, led by cables at ₹2,456 cr.
- PAT fell 15.3% to ₹298 cr as raw material costs and ad expenses surged.
- Lloyd consumer segment operating loss widened to ₹51 cr from ₹20 cr a year ago.
- New Renewables segment contributed ₹314 cr in revenue.
Why this matters
At a trailing P/E of 43.7, Havells trades on its ability to compound earnings. This quarter shows the cost of that growth rising: ad spend nearly doubled and raw material margins compressed. The Lloyd loss, despite improving trajectory per management, is still a drag. A standard earnings release, but the profit decline will test the premium.
What we're watching
- Whether ad spend moderates in coming quarters as brand investments stabilise.
- Lloyd's path to breakeven after a wider-than-expected loss in Q1.
- How the new Renewables segment scales and its margin profile.
The full read
Havells India's top line grew 19.7% to ₹6,510 crore in Q1 FY27. The bottom line did not. Net profit fell 15.3% to ₹298 crore as raw material inflation and a near-doubling of advertising spend squeezed margins. The Lloyd consumer segment, a key growth bet, posted an operating loss of ₹51 crore, wider than ₹20 crore a year ago. Cables remained the workhorse at ₹2,456 crore, while the new Renewables segment added ₹314 crore. The numbers are not a shock; the market had likely already priced them in. But at a trailing P/E of 43.7, Havells earns its valuation on earnings growth, not revenue alone. A quarter where profit shrinks despite a 20% revenue jump tests that premium. The cost of winning share is rising. That is the worry.
Questions answered
- What drove the 20% revenue growth?
- Cables posted ₹2,456 cr, Lloyd appliances grew, and the new Renewables segment added ₹314 cr. The growth was broad-based.
- Why did profit fall despite strong revenue?
- Raw material costs rose and advertising expenses nearly doubled, compressing operating margins. Net profit fell 15.3% to ₹298 cr.
- How did the Lloyd segment perform?
- Lloyd reported an operating loss of ₹51 cr, wider than the ₹20 cr loss a year ago, indicating ongoing competitive pressure despite revenue growth.
- What is the Renewables segment?
- It is a newly carved-out segment that contributed ₹314 cr in revenue, signalling Havells' strategic push into the Indian renewable energy market.
- Are these results a surprise?
- Revenue was in line with expectations, but the profit decline may draw analyst scrutiny. The market had already priced in the numbers before the filing.
Havells India Ltd.
Latest quarter · Jun 2026
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All notes on HAVELLS →- 17 Jul 2026 · 2:23 PM IST Havells sales up 20% to ₹6,510 cr, profit down 15% as costs bite
- 7d ago Havells Q1 transcript: Ad strategy detailed, no fresh surprise
- 11d ago Havells doubles ad spend to premiumise, margins feel the pinch
- 11d ago Havells revenue up 20%, but profit slips 15% as costs bite
- 11d ago Havells revenue up 20%, profit down 15% as ad spend doubles