Havells India Limited has disclosed to stock exchanges that it received a customs order demanding Rs 2.02 crore related to classification of imported goods. The company informed both NSE and BSE about this regulatory development under SEBI listing obligations on March 20, 2026.

Customs Order Details

The Commissioner of Customs, ICD TKD-Import, New Delhi issued the order dated March 13, 2026, covering the period from May 2020 to July 2023. The demand breakdown shows equal components of customs duty and penalty.

The order specifically addresses classification issues related to certain imported goods during the specified period. Havells received the order on March 20, 2026, and has disclosed the matter in compliance with Regulation 30 of SEBI LODR requirements.

Company's Response and Legal Position

Havells has indicated it will contest the customs demand through proper legal channels. The company, after consulting with its tax advisor, maintains that the demand raised in the order is not sustainable in law. Management plans to file an appeal against the order under applicable provisions of the Customs Act.

Financial and Operational Impact

The company has assessed that this customs order will not materially impact its financial position, operations, or other business activities. This assessment comes despite the substantial demand amount of over Rs 2.02 crore, suggesting confidence in the legal challenge's prospects.

Regulatory Compliance

The disclosure follows mandatory requirements under SEBI listing regulations, specifically Regulation 30 and sub-para 20 of Para A of Part A of Schedule III of SEBI LODR. The company provided comprehensive details including the nature of violations alleged, receipt dates, and potential business impact as required by regulatory frameworks.

Company Secretary Sanjay Kumar Gupta signed the disclosure document, ensuring proper corporate governance protocols were followed in communicating this development to stakeholders and regulatory authorities.

Havells India has received an accumulate rating from Prabhudas Lilladher with a target price of ₹1,634, unchanged from the previous recommendation. The brokerage's research report highlighted the company's moderate growth performance in Q3FY26, driven primarily by strong momentum in the wires and cables segment.

Segment Performance Analysis

The wires and cables segment emerged as the key growth driver, registering a robust 32.8% growth during the quarter. This performance was supported by growth in cables and volume expansion across the segment. The company maintained its market share across key categories while likely gaining share in lighting products.

Electrical Consumer Durables Outlook

The electrical consumer durables segment witnessed strong demand for heating products, aided by favorable winter conditions. However, the company continues to work on normalizing channel inventory for cooling products. Management expects old inventory in room air conditioners and fans to be cleared over the coming quarters, with complete clearance anticipated by May 2026.

The company is considering a price hike of approximately 5.00-10.00% in room air conditioners during Q4FY26, which will be offset by GST-related price reductions.

Capital Expenditure and Expansion Plans

Havells has outlined significant expansion plans with a guided capital expenditure of approximately ₹10.00 billion for FY27. The capex allocation includes:

• New research and development center
• Wires and cables segment expansion
• Ongoing investments at Sri City facility for room air conditioners and other white goods

The Sri City facility investments remain primarily focused on the domestic market, while the company continues to evaluate potential export opportunities.

Financial Projections and Valuation

Prabhudas Lilladher has projected strong growth trajectories across key business segments for the FY25-28E period. The brokerage estimates overall revenue, EBITDA, and PAT CAGR of 11.90%, 12.70%, and 13.20% respectively.

The target price of ₹1,634 is based on discounted cash flow valuation, which implies 48x FY28E earnings. The brokerage maintains its accumulate recommendation, citing the company's strong market position and growth prospects across key segments.