Havells India Limited delivered impressive Q4 FY26 results with consolidated net profit surging 39.63% year-on-year to ₹723.06 crore, significantly beating analyst expectations. According to latest reports, revenue from operations jumped 2.47% YoY to ₹6,705.20 crore, compared with ₹6,543.56 crore in Q4 FY25. The company's board recommended a final dividend of ₹6 per equity share with a face value of ₹1 each, at a rate of 600% for FY26. This strong performance has prompted Citi to upgrade Havells from Neutral to BUY with an unchanged target price of ₹1,500. The brokerage cites favorable risk-reward after recent stock correction and improving visibility on both growth and margins as key reasons for the upgrade.
Citi has issued significant rating upgrades for three major consumer stocks, turning bullish on Page Industries, Titan, and Havells India. According to reports from ET Now, Page Industries received an upgrade from SELL to BUY with a revised target price of ₹47,700, compared with its earlier target of ₹34,100. Titan was upgraded from Neutral to BUY with a target price of ₹5,075, while Havells India maintained its BUY rating with an unchanged target price of ₹1,500. These upgrades reflect growing confidence in the consumer sector's near-term prospects. Citi has also opened a positive catalyst watch on both Page Industries and Titan, indicating strong conviction in these stocks' future performance.
The company's EBITDA stood at ₹730 crore in Q4 FY26 against ₹758 crore in the previous year, representing a 3.7% decline. However, EBITDA margin compressed to 10.9% from 11.6% in Q4 FY25, down 70 basis points year-on-year. Despite the margin pressure, the strong profit growth demonstrates effective cost management and operational efficiency. Havells shares were trading 2.5% higher at ₹1,188 at the time of reporting, reflecting positive market sentiment following the earnings announcement. The stock is down 16% so far this year, but the recent correction has created a favorable entry point into the high-quality electricals/consumer durable franchise.
According to Citi's analysis, Havells' growth will improve in the current financial year, led by strong growth in cables and wires, a gradual recovery in consumer businesses and the solar segment emerging as a meaningful growth driver. The brokerage notes that margins should benefit from operating leverage in electronic consumer durables (ECD) and cables and wires, bundled with moderation in losses for Lloyd. However, near-term Lloyd margin weakness remains a monitorable factor for investors. The combination of strong Q4 performance and positive analyst outlook positions Havells favorably in the electrical equipment sector, with the stock offering 29.3% upside potential from current levels.
