Havells India shares declined 2.48% to ₹1,071.1 following the release of Q3FY26 results that showed strong profit growth but revenue challenges. Net profit surged 20.54% year-on-year to ₹349.22 crore, while revenue from operations slipped slightly by 1.32% to ₹6,431.99 crore compared to Q2FY26. EBITDA came in at ₹541 crore, surging 53.54% YoY and expanding 31.24% sequentially, with profit before tax (PBT) standing at ₹472.62 crore, improving 14.00% year-on-year and rallying 20.48% quarter-on-quarter. The company's consolidated net cash flow from operating activities stood at ₹1,571.99 crore in FY26, compared to ₹1,515.29 crore in FY25, demonstrating strong cash generation capabilities.
Chairman Anil Rai Gupta expects demand momentum to continue in the December quarter, with early festive-season trends showing positive traction across select consumer durable categories. According to NDTV Profit, initial trends from modern format retail and e-commerce had been encouraging, with small domestic appliances, personal grooming products, and Lloyd's television business seeing positive momentum. Cables and wires margins are expected to remain stable within the usual range of 15% to 16% in coming quarters, despite the segment contributing to EBITDA margin pressure in Q3. Nearly 60% of Havells' cables and wires business comes from domestic wires, making it relatively consumer-focused, though higher prices have affected volume growth.
Lloyd's profitability is expected to improve as the air conditioner season picks up, with room air conditioners accounting for around 70% of Lloyd's business making the September quarter seasonally weak. As per NDTV Profit, Lloyd had delivered decent growth in both the June and September quarters, driven largely by volumes rather than price increases. Gupta described Lloyd as a medium-term investment opportunity in an industry worth more than ₹1 lakh crore, with the company continuing to invest in manufacturing capabilities, brand building, and distribution. Havells has invested in newer categories including refrigerators and washing machines, establishing a large manufacturing facility for refrigerators, while Lloyd's television business continues to grow at a healthy pace.
Management indicated that prices have been increased by 10-25% across products over the past 12 months, with further calibrated hikes of 5-7% planned in Q3FY27 to counter cost pressures. According to Prabhudas Lilladher, A&P spends normalised to 2.1% of revenue from 4.4% in Q1FY27. The company is evaluating a 5% to 7% price increase in the December quarter to counter cost pressures. Total expenses slightly declined by 3% to ₹5,987.23 crore in Q3FY26 over Q3FY25, with cost of materials consumed at ₹3,447.25 crore, falling 14.32% YoY, while employee benefits expense was ₹553.89 crore, ticking higher by 4.22% YoY.
Prabhudas Lilladher recommended an 'Accumulate' rating on Havells India with a target price of ₹1,212 in its research report dated October 23, 2026, downgrading from its earlier 'Buy' rating. This contrasts with the earlier mixed brokerage commentary where Goldman Sachs maintained its Buy rating but cut the target price to ₹1,225 from ₹1,400, while Jefferies retained its Hold rating but lowered the target price to ₹1,220 from ₹1,240. Havells India has underperformed the benchmark BSE Sensex, declining 27.84% over the last one year compared to the Sensex's 12.69% decline during the same period. The company's market capitalization has softened by 4.15% and 12.69% in the last one week and month respectively, reflecting investor concerns about recent performance despite strong fundamentals.
