Crompton Greaves reported a consolidated net profit of ₹143 crore for Q1FY27, a 15.2% year-on-year increase from ₹124 crore in the corresponding period of FY26, driven by disciplined pricing actions that offset commodity inflation and expanded EBITDA margins by 20 basis points to 10.0%. Consolidated revenue from operations grew 11.8% to ₹2,235 crore, reflecting sustained demand across its core electrical consumer durables segments despite broader market volatility.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 06, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standard 34 ('Interim Financial Reporting') and reviewed by MSKA & Associates LLP, the company’s independent auditors.

Financial Performance Overview

Consolidated total income stood at ₹2,256.81 crore, compared to ₹2,022.05 crore in Q1FY26. Other income decreased slightly to ₹21.79 crore from ₹23.67 crore in the prior year quarter. Total expenses were managed at ₹2,065.50 crore, resulting in a profit before tax of ₹191 crore, up 15.2% from ₹166 crore in Q1FY26. Finance costs declined significantly to ₹9.70 crore from ₹14.61 crore in Q1FY26, contributing positively to the bottom line.

Standalone net profit rose 12.1% YoY to ₹140 crore from ₹125 crore. Standalone revenue grew 11.2% to ₹2,022 crore. Earnings per share for the holding company stood at ₹2.18, compared to ₹1.94 in the same quarter last year.

Segment-Wise Growth

The Electric Consumer Durables (ECD) segment remained the primary growth engine, contributing ₹1,754 crore to consolidated revenue, an increase of 10.6% from ₹1,586 crore in Q1FY26. The segment’s EBIT improved by 12.1% to ₹237 crore, with margins expanding by 20 bps to 13.5% due to operating leverage and price hikes. Within ECD, the BLDC fan portfolio delivered highest quarterly sales, growing approximately 44% YoY.

Lighting Products revenue grew 15.4% to ₹269 crore, driven by strong momentum in both B2C and B2B segments, including key projects for Google data centers and ISRO. However, Lighting EBIT margin declined by 70 bps to 12.0% due to pre-contracted rates in B2B orders carrying elevated input costs. Butterfly Products saw revenue climb 14.1% to ₹214 crore, with EBITDA margin expanding by 20 bps to 7.0%.

What the Numbers Show

The divergence between revenue growth and expense management highlights improved operational efficiency. While material costs rose 13.4% YoY due to commodity inflation, disciplined pricing interventions allowed EBITDA margins to expand to 10.0% from 9.8% in Q1FY26. The significant reduction in finance costs, down 33.6% YoY, further amplified net profit growth beyond revenue expansion. This indicates effective debt management and favorable interest rate impacts, reinforcing the company’s ability to protect margins in an inflationary environment.

Operational Highlights

Crompton Greaves launched several new products in Q1FY27, including the Energion Hyperboost BLDC Ceiling Fan for e-commerce and the SilentPro Enso IOT BLDC Ceiling Fan. In the kitchen appliances segment, the company won the Golden Peacock Eco-Innovation Award 2026 for India’s first 5-Star rated cooktop, "RENZ COOKTOP." The company also rolled out its B2C solar pumps business and introduced CVM pumps in its specialty portfolio. Marketing efforts included an integrated "Fans Summer Campaign" reaching over 80 million consumers via TV and digital platforms, leveraging IPL activations in Maharashtra and Bangalore.

The Joint Commissioner of State Tax (Appeal-IV), Mumbai, has partially allowed a Goods and Services Tax (GST) demand order against Crompton Greaves for the financial year 2019-20. The company received the order on July 23, 2026, at 2:28 PM, following an earlier assessment by the Deputy Commissioner of State Tax, Bandra West 502, Nodal Division – 6, Mumbai, dated August 28, 2024. The potential monetary impact of this partial allowance stands at ₹5,78,84,851, which includes tax, interest, and penalty components. Despite the legal proceeding, management asserts that the matter has no material impact on the company’s financials or operations.

The dispute centers on input tax credit (ITC) disallowances and reverse charge mechanism applications. Specifically, the authorities raised demands due to mismatches with GSTR 2A records. Additionally, tax was imposed under the reverse charge mechanism on extra invoices of service providers that appeared only in GSTR 2A. The order also includes a demand for ITC reversal on exempted supplies, considering the related expenses as common in nature.

Financial Impact Breakdown

The total exposure from the partially allowed order is detailed below:

Crompton Greaves had previously intimated the stock exchanges about the initial assessment order under Section 73 of the SGST Act, 2017, via a filing dated August 29, 2024. The company stated it would file an appeal against that initial order before The Commissioner (Appeals). This latest development represents the appellate authority’s decision on that first appeal.

Legal Strategy and Next Steps

In response to the Joint Commissioner’s order, Crompton Greaves plans to file a further appeal under Section 112 of the SGST Act, 2017. The decision to proceed with this higher-level appeal is based on the merits of the case, prevailing laws, and advice from consultants. The company reasonably expects a favorable outcome from the subsequent appellate authorities.

This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III. The filing also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026. The intimation was signed by Kaleeswaran Arunachalam, Chief Financial Officer, and submitted to both the Bombay Stock Exchange and the National Stock Exchange of India Limited.