Why Did Havells India See Margin Pressure Despite Profit Growth in Q2 FY26?
Havells India reported a resilient performance in Q2 FY26, recording healthy year-on-year growth in revenue and profit, but sequential softness in margins. Despite strong consumer demand in key electrical categories, higher input costs and channel destocking during the quarter weighed on operational performance.
For the quarter ended September 2025, Havells India posted a consolidated net profit of ₹319 crore, up 19% YoY but down 8% QoQ. Revenue rose 5% YoY to ₹4,779 crore, reflecting continued growth in cables, switchgears, and Lloyd appliances. On a sequential basis, topline declined 12%, largely due to seasonality in consumer durables and project delays in B2B electrical solutions.
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The company’s EBITDA stood at ₹438 crore, up 17% YoY but down 15% QoQ. Margins moderated to 9.2% compared with 9.46% in the previous quarter and 8.27% a year ago. The improvement over last year was driven by cost optimization and lower commodity prices, though the quarter-on-quarter decline reflected muted festive restocking and subdued demand from trade channels.
Havells continues to invest in capacity expansion and brand development, particularly within the Lloyd segment, to capture premium appliance demand. The company’s strategic focus on channel expansion and product innovation is expected to support medium-term growth, even as near-term consumption trends remain uneven. Analysts highlight that the company’s balanced portfolio mix and healthy balance sheet offer long-term resilience.
Management commentary suggested cautious optimism for the festive quarter, anticipating gradual demand recovery in Q3 FY26. Distribution-led growth, export expansion, and improved product availability across rural markets remain key priorities. The lighting and switchgear divisions continue to outperform, driven by energy-efficient product launches.
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Havells’ outlook remains steady as raw material volatility eases and demand normalizes in the second half of FY26. With strong cash flows and operational efficiency, the company is expected to sustain double-digit growth and improve margins in coming quarters, supported by premium product launches and increased retail penetration.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Havells India’s Q2 FY26 performance reflects a strong underlying business structure with temporary margin pressures. Investors should focus on volume growth in the upcoming festive quarter and margin trajectory before taking long-term positions.
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Related Queries on Company Performance
- Why Did Havells India’s Margins Decline Sequentially in Q2 FY26?
- What Are the Key Growth Drivers for Havells in FY26?
- How Will Havells’ Capacity Expansion Impact Its Profitability?
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.
