Havells India Limited reported a 15.3% decline in consolidated net profit to ₹289.71 crore for the quarter ended June 30, 2026, compared to ₹347.53 crore in the same period last year. The company's total income increased to ₹6,572.35 crore for the quarter, up from ₹5,524.53 crore in Q1FY25. On a standalone basis, net profit after tax fell to ₹298.43 crore from ₹352.34 crore in the corresponding previous quarter, while total income stood at ₹6,564.10 crore. The decline in profitability was attributed to significant raw material inflation and a strategic doubling of advertising spends year-on-year to build the brand, which impacted margins during the quarter.

Financial Performance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 17, 2026. The results have been prepared in accordance with the Indian Accounting Standard 34 (Ind AS 34) for Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013.

Consolidated Results

Standalone Results

Operational Updates

Management stated that demand remained resilient despite inflationary pressures, supported by a decent summer season for cooling products, although a delayed onset restricted full seasonal benefits. To offset significant raw material inflation, the company implemented calibrated and staggered price hikes across categories, averaging 7% to 8%. The consumer categories absorbed these price hikes well. Additionally, the company stepped up brand building efforts, with advertising spends more than doubling year-on-year. While this front-loading of investments impacted quarterly profitability, management expects these spends to normalize during the rest of the year.

Segment Performance

The Switchgear segment faced challenges due to export disruptions to West Asia and volatility in raw material prices, leading to a 4% year-on-year decline in sales and margin erosion. International business, which constitutes about 15% of switchgear sales, was impacted by vessel availability issues, though a rebound is expected in the following quarter. The Renewables business continued to scale rapidly, leveraging sector tailwinds, and has been reported as a separate segment from this quarter. Management expects margins in the renewables segment to improve as the product mix shifts towards consumer-side businesses.

Outlook

The company has a healthy outlook on margins for the remainder of the year, anticipating that contribution margins will stabilize as price hikes take effect and advertising spends normalize. For the full year FY27, capital expenditure is planned at around ₹1,400 crore, with a significant portion allocated to the cables and wires business and a new R&D center. Management remains positive on the long-term growth prospects of the renewables sector and its strategic investments in supply chain and capacity expansion.

Havells India Limited has announced a further expansion of its cable manufacturing capacity at the Vasanthnarasapura Industrial Area in Tumakuru, Karnataka. The company will invest approximately ₹255 crore to increase the annual capacity from 4,59,600 km to 7,34,640 km. This expansion is expected to be completed by December 2027 and will be funded through internal accruals.

Expansion Progress

The company has partially completed a previous phase of expansion at the Tumakuru facility, achieving an annual manufacturing capacity of 4,59,600 km of cables. To date, the company has invested ₹285 crore in this phase out of the total ₹450 crore previously intimated. The new investment of ₹255 crore includes the pending capital expenditure from the last phase.

Investment Details

The following table outlines the capacity expansion and investment details: