Prabhudas Lilladher has recommended a buy rating on Crompton Greaves Consumer Electricals with a revised target price of ₹330, based on 28x Mar'28 earnings in its research report dated August 07, 2026. The brokerage's recommendation comes after the company delivered strong first-quarter results for FY27, with revenue growing ~12% YoY to ₹22.4 billion and EBITDA rising ~17% YoY to ₹2.2 billion. The EBITDA margin improved 45 basis points YoY to ~10%, while PAT grew ~15% YoY to ₹1.4 billion, with the performance meeting Motilal Oswal's estimates across key metrics. Prabhudas Lilladher estimates revenue/EBITDA/PAT CAGR of 14.8%/20.0%/20.7% over FY26-28E, though they have downward revised FY27/FY28 earnings by 2.0%/1.7% respectively, factoring in lower revenue estimates.
Shares of Crompton Greaves Consumer Electricals Ltd declined 7% to touch an intraday low of ₹250.05 on Friday, despite the company posting strong first-quarter results for FY27. The sharp fall came even as the company delivered consolidated net profit rising 15.2% year-on-year to ₹143 crore with a margin of 6.4%, compared with ₹123.9 crore in the corresponding period last year, according to latest financial results approved by the Board of Directors. The company's revenue from operations increased 11.8% to ₹2,235 crore during the April-June quarter, up from ₹1,998 crore a year earlier, though this fell slightly short of analyst expectations. The stock decline came even as the company delivered broad-based performance across all segments, demonstrating the ongoing growth momentum the company is experiencing.
Crompton's ECD segment delivered 10.6% YoY growth, supported by moderate performance across Fans, Pumps and Domestic Appliances. BLDC fans remained a key growth driver with ~44% growth, while Ceiling Fans and Pumps continued to gain market share. Domestic Appliances registered double-digit growth led by Water Heaters, which also strengthened their market position. The Lighting segment grew 15.4% YoY, driven by double digit growth in both B2C and B2B segments, although B2B margins were impacted by pre-contracted lower-priced orders. Butterfly revenue increased 14.0% YoY, led by broad-based growth across channels and market share gains in mixer grinders, pressure cookers and glass cooktops. The company implemented high single-digit to low double-digit price hikes across categories to offset commodity inflation.
The Solar Rooftop business remained in ramp-up mode with a ~₹5bn order book, of which ~₹4.5bn is expected to be executed over the next six to eight months. This emerging revenue stream is expected to contribute significantly to the company's future growth trajectory. The company successfully managed to pass on around 80% of inflationary pressure to customers, while lean working capital management and cost controls also supported performance. Despite these challenges, the company maintained its growth momentum through strategic pricing actions and operational efficiency measures.
Equirus Securities' Manoj Gori highlights Crompton's sustained operational outperformance, noting that the company has delivered operating performance better than industry average over the last four to six quarters. Despite losing close to ₹200 crore in revenue during Q1FY27, the company still managed double-digit top-line growth while holding margins steady. Gori expects a fresh revenue stream from solar rooftop products to kick in going forward, which is why he's more optimistic about the next two quarters. The outlook for Q2 and Q3 seems... much better than what we were expecting, he stated. The analyst points to three electrical companies — Crompton, Orient Electric and V-Guard Industries — all managing their margins better than most of their peers during the earnings season, suggesting strength concentrated in electricals broadly rather than just one company's turnaround.
