Havells India Ltd. reported robust financial performance for Q3FY26, with revenue rising 14% to ₹5,573 crore from ₹4,882 crore year-on-year. Net profit increased to ₹301 crore from ₹283 crore, while EBITDA margin improved to 9.40% from 8.80% in the same period last year. However, gross margin remained relatively stable at 33.10% compared to 33.40% a year ago. As per reports, other income declined to ₹42.70 crore from ₹64 crore in the previous year.
Havells India's Chairman and Managing Director Anil Rai Gupta has warned that unprecedented commodity price increases could hurt near-term demand. In an interaction after the company's Q3 results, Rai Gupta highlighted that copper prices have surged 50% over the past year and 25% in just the last month. According to reports, he described the raw material price increases as unprecedented, with the market struggling to pass increased costs to buyers. The CMD also noted that silver price increases are affecting margins in products like switchgears and fans.
The company is beginning to reap benefits from its ongoing capacity expansion in the cables and wires segment. As per management, capacity constraints are no longer a major limiting factor for growth, with additional facilities already coming on stream and more capital expenditure planned. Rai Gupta explained that the capacity expansion in cables, where the company was previously short of capacity, has been showing results. He emphasized that a lot of the company's CapEx for the next year will continue to focus on cables and wires, ensuring capacity doesn't become a constraint going forward.
Rai Gupta explained that the commodity price surge could impact demand in the very short term due to extra stocking in Q3FY26 by the channel, which is expected to normalise in January. For cables and wires business, where 70-80% of raw material is copper and aluminium, cost increases are being passed on immediately, though this can impact margins in the short term. According to reports, he noted that in brand and distribution oriented businesses, demand is not so price elastic, making it prudent to pass on cost increases to consumers in the medium-term to protect margins.
The market capitalisation of Havells India stands at around ₹84,914.89 crore, with the stock declining nearly 16% over the past year amid commodity price pressure concerns. Despite near-term challenges from global trade tensions and rising competition, management believes the gradual shift from unorganised to organised players, supported by brand strength, distribution and product innovation, will underpin sustainable growth over the longer run. The company is also expanding its solar business through its investment in Goldi Solar, which is expected to become a significant business unit in the next three to five years.
