Crompton Greaves Consumer Electricals Limited outlined its long-term growth strategy at Investor Day 2026, targeting a revenue compound annual growth rate (CAGR) of 13-14% and aiming to double its revenue by FY31. The consumer durables manufacturer reported FY26 revenue of ₹8,096 crore, reflecting an 11% CAGR since FY22. The company plans to achieve these targets through a mix of premiumization, expansion into new categories, and strengthening its go-to-market capabilities.

Management highlighted that the premiumization mix increased from 20% of total revenue in FY22 to 27% in FY26. This shift contributed to an 8.6% CAGR in revenue per unit, rising from ₹547 in FY22 to ₹759 in FY26. The company also noted pricing actions in lead categories, with a 14.2% price increase implemented in Q1FY27.

Financial Performance

The company maintained disciplined cost management despite rising commodity prices. Copper prices escalated by 73% and aluminum alloy ADC12 by 94% from FY22 levels. To mitigate this, Crompton Greaves implemented the 'Unnati' program, achieving 4% productivity gains since FY24. Fixed costs as a percentage of revenue decreased by 120 basis points to 11.4% in FY26, down from 12.8% in FY22.

Reported EBITDA margin stood at 10.2% in FY26, while adjusted EBITDA margin was 15.0%. The company invested heavily in growth, increasing advertising and promotion (A&P) spend from 1.7% of revenue in FY22 to 3.7% in FY26. Research and development (R&D) spend also rose from 0.4% to 1.1% over the same period.

Segment Highlights

The Electrical Consumer Durables (ECD) segment contributed 75% of total revenue in FY26. Within ECD, the fans business saw a 60 basis point increase in market share between FY23 and FY26, driven by platformization and the transition to BLDC technology. The lighting business gained 30 basis points in B2C lights market share during the same period.

Butterfly, the kitchen appliances brand, turned around its performance with EBITDA margins improving from 2.9% in FY24 to 8.5% in FY26. The company achieved this through optimized channel mix and improved brand salience. Butterfly aims to double its business in three years by expanding footprint in South India and accelerating innovation.

Strategic Initiatives

Crompton Greaves is focusing on four key pillars under its 'Crompton 2.0' framework launched in 2023:

• Protect and grow the core: Strengthening leadership in fans, large domestic appliances, and pumps.
• Win in the Kitchen: Scaling small domestic appliances and large kitchen appliances businesses.
• Transform Lighting: Enhancing product innovation and expanding range across panels and segments.
• Foray into new segments: Entering 2-3 attractive whitespaces aligned with the overall vision.

The company also emphasized sustainability, achieving a 23% reduction in Scope 1 and 2 greenhouse gas emissions in FY26 alone. It aims for a 50% reduction in absolute Scope 1 and 2 emissions by 2035 against a 2022 baseline. Renewable energy share at plants increased from 0.05% to 21% in one year.

What the Numbers Show

The divergence between reported EBITDA margin (10.2%) and adjusted EBITDA margin (15.0%) in FY26 highlights the significant impact of growth investments. While operational efficiency improved with fixed costs declining as a percentage of revenue, the company chose to reinvest heavily in brand building and innovation. This strategy resulted in a net cash position of ₹1,155 crore as of March 31, 2026, up from a net debt position of ₹68 crore in FY22, demonstrating strong operating cash flow conversion exceeding 85% of EBITDA.

Crompton Greaves has set an ambitious revenue target of ₹15,000 crore by FY31, aiming to nearly double its current scale. According to an investor presentation, the company targets an annual revenue growth rate of 13-14% over the next three years to achieve this milestone.

Revenue target and growth strategy

The following table outlines the reported revenue targets and growth metrics for Crompton Greaves:

The existing portfolio of fans, pumps, lighting, water heaters, air coolers, and kitchen appliances is expected to contribute ₹12,000 crore toward the ₹15,000 crore target. The remaining revenue is projected to come from new business segments, which are expected to rise from 14-15% of total revenue to about 20% by FY31.

Margin expansion and product mix

Alongside top-line growth, Crompton Greaves plans to improve profitability by boosting its EBITDA margin from 11-12% by FY29 to over 12% by FY31. This margin expansion is part of a broader strategy to enhance operational efficiency and value creation.

The company also aims to raise the share of smart and connected products in its business from about 15% by FY29 to roughly 20% by FY31. This shift indicates a focus on higher-value, technology-enabled offerings within its consumer electrical portfolio.

What the Numbers Show

The strategic plan highlights a dual focus on volume growth and mix improvement. With existing categories accounting for ₹12,000 crore of the ₹15,000 crore target, the core business remains the primary growth anchor. However, the planned increase in the contribution of new business segments from 14-15% to 20% suggests a deliberate effort to diversify revenue sources beyond traditional products. Simultaneously, the push to increase the smart product share to 20% aligns with the goal of expanding EBITDA margins, indicating that higher-margin, connected devices are central to the company's profitability outlook.