Havells India has reported a 14% year-on-year rise in revenue for the third quarter of FY26, supported by strong demand for cables, wires and solar products, even as some consumer-facing categories remained under pressure.
Excluding its Lloyd consumer durables business, revenue growth stood higher at 18%, broadly in line with market expectations. The company said robust performance in solar products and cables and wires helped offset slower sales in lighting and summer-linked products such as fans, air coolers and room air conditioners, which typically face seasonally weaker demand during the quarter.
Operating performance remained resilient. EBITDA margins came in at 9.3%, largely unchanged from expectations and 50 basis points higher than a year earlier. This was achieved despite lower absorption of costs at Lloyd during the off-season. Gross margins, however, declined by 140 basis points year-on-year, reflecting higher input costs and under-absorption in the cables and wires segment — pressures the company expects to ease in the fourth quarter.
Management indicated that channel inventories in room air conditioners have largely normalised, setting the stage for a pickup in growth in the final quarter of the financial year.
Looking ahead, Havells is optimistic about demand recovery. A potential reduction in GST is expected to support the room air conditioner business by helping companies pass on rising costs. Meanwhile, solar products continued their strong momentum during the quarter and are expected to contribute more meaningfully to overall revenues in the coming periods.
The company also pointed to a favourable base across several segments and expects growth in cables and wires to accelerate further as new cable manufacturing capacity comes on stream.
Analysts believe the earnings downgrade cycle for Havells is now behind it. With growth likely to improve and operating leverage turning favourable, the outlook for the coming quarters appears constructive. Despite ongoing volatility in commodity prices across the electricals sector, Havells’ diversified portfolio — particularly its exposure to cables and wires — is seen as providing a degree of insulation against margin pressures.
The stock continues to attract a positive outlook, with expectations of steady growth momentum into FY27.
