Why Did Prabhudas Lilladher Raise Havells India’s Target to ₹1653?
Havells India received a revised target price of ₹1653 from Prabhudas Lilladher following its Q2FY26 results, which reflected moderate growth amid short-term portfolio challenges. The brokerage highlighted that weakness in the Lloyd and Electrical Consumer Durables (ECD) segments impacted near-term revenue, but expects normalization in working capital by Q4FY26 as inventory liquidation accelerates.
Despite the temporary softness, Havells remains well-positioned for a rebound led by expanding opportunities in solar equipment and wires & cables (W&C). The research report forecasts a steady improvement in profitability with a projected PAT CAGR of 13.3% through FY28.
Prabhudas Lilladher noted that Havells’ long-term structural story remains intact, backed by strong brand equity, pan-India distribution, and leadership in key product categories. Short-term destocking pressures are expected to ease as festive demand and new product launches revive consumer sentiment.
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According to the brokerage, Havells’ near-term focus is on normalizing inventory levels and improving margin performance across product lines. The W&C segment continues to outperform, while the solar and switchgear portfolios are gaining traction due to renewed infrastructure activity and government-backed energy efficiency programs.
Havells India — Q2FY26 Performance Snapshot
| Metric | Value / Estimate | Notes |
|---|---|---|
| Target Price | ₹1653 | Raised post Q2FY26 analysis |
| Revenue CAGR (FY24–FY28) | 11.5% | Driven by strong W&C performance |
| EBITDA CAGR (FY24–FY28) | 12.9% | Margin recovery expected from FY26 |
| PAT CAGR (FY24–FY28) | 13.3% | Supported by cost optimization initiatives |
| Inventory Normalization | By Q4FY26 | Working capital efficiency to improve |
The brokerage emphasized that while Lloyd’s segment performance remains under pressure, the management’s focus on product refreshes and pricing discipline could help revive volumes in FY26. The Electrical Consumer Durables division is also expected to benefit from cooling input costs and improving festive demand.
Havells’ forward strategy centers around sustainable energy solutions and backward integration in cables manufacturing, which are expected to strengthen long-term margins. Its capital expenditure program in solar-related wiring and smart electrical systems aligns well with India’s green transition goals.
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As per Prabhudas Lilladher, Havells India’s strategic balance between premium product positioning and cost efficiency provides a cushion against near-term headwinds. The brokerage expects steady recovery from FY26 onwards, aided by margin normalization, improved demand from real estate and infrastructure, and the scale-up of solar and W&C businesses.
The company’s strong free cash flow generation, minimal leverage, and consistent dividend policy further enhance its investment appeal for long-term investors seeking a blend of growth and stability.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, believes that Havells’ Q2FY26 moderation is a temporary phase before a steady rebound. With robust growth prospects in renewable energy and industrial wiring, the stock’s revised target of ₹1653 reflects confidence in its long-term earnings trajectory and operational excellence.
Discover more such equity research insights and long-term compounding opportunities at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Havells India
- What Is Prabhudas Lilladher’s New Target for Havells India?
- How Will Solar and W&C Segments Drive Havells’ Growth?
- When Will Havells’ Working Capital Normalize?
- What Is the Expected PAT CAGR for Havells Till FY28?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
