Crompton Greaves Consumer Electricals Ltd (CGCEL), a leading player in India's consumer durables sector, has reported its financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of challenging market conditions.

Financial Performance

For Q2 FY26, CGCEL reported consolidated revenue of ₹1,916.00 crore, marking a modest 1% year-on-year growth. This performance was underpinned by a 3% increase in underlying volume growth, partially offset by pricing adjustments. The company's profitability, however, faced some pressure:

• Adjusted EBITDA stood at ₹158.00 crore with a margin of 8.3%, declining year-on-year.
• Adjusted PAT (excluding restructuring costs) was ₹91.00 crore.

The company attributed the margin contraction to commodity inflation, pricing pressures, continued advertising and promotion investments, and higher operating expenses supporting transformation initiatives.

Segment Performance

Electric Consumer Durables (ECD)

The ECD segment reported revenue of ₹1,371.00 crore, a slight decline of 1.5% year-on-year, primarily due to adverse weather conditions. However, certain categories showed strength:

• Pumps delivered strong growth, particularly in the solar pump segment.
• Small Domestic Appliances (SDA) continued to perform well, driven by new product launches and effective festive campaigns.

Lighting

The lighting segment demonstrated stability with revenue growth of 3.1% year-on-year, reaching ₹261.00 crore. This was supported by robust volume growth in the high-teens, despite industry-wide price erosion.

Butterfly Gandhimathi Appliances Ltd

Butterfly, a subsidiary of CGCEL, reported strong performance with revenue growth of 14% year-on-year, reaching ₹293.00 crore. The growth was accompanied by improved margins, driven by sustained volume growth and new product launches.

Strategic Developments

Crompton Greaves has made significant strides in its solar business:

• Secured aggregate orders of approximately ₹500.00 crore for solar rooftop units.
• These orders cover about 50,000 consumer households and are expected to be executed in the near term.

The company has also undertaken a restructuring of its Vadodara plant operations, transitioning from a lighting facility to a multi-business facility. This resulted in a one-time restructuring cost of ₹20.36 crore.

Management Commentary

Promeet Ghosh, MD & CEO of CGCEL, commented on the results: "Despite a challenging environment, our well-diversified product portfolio remained resilient with strong momentum in pumps, small domestic and kitchen appliances. We believe GST 2.0 will act as a structural catalyst to consumption, with benefits percolating to the durables segment in a phased manner."

Ghosh also highlighted the potential of the solar rooftop business as a new growth engine, backed by the company's proven execution excellence and robust supply chain network.

Looking Ahead

Crompton Greaves remains committed to strengthening its brand, expanding distribution, focusing on innovation, enhancing manufacturing capabilities, and investing in its workforce. These strategic initiatives are aimed at positioning the company to capture future opportunities and sustain long-term growth in the competitive consumer durables market.

As the company navigates through market challenges and capitalizes on emerging opportunities, particularly in the solar segment, investors and industry observers will be keenly watching CGCEL's performance in the coming quarters.

Crompton Greaves Consumer Electricals Limited (Crompton) is making significant strides in the solar energy sector, aiming to generate ₹2,000 crore in revenue from its solar pumps and rooftop projects over the next 18-24 months. The company's ambitious plans are backed by recent major contract wins and a strong focus on expanding its solar capabilities.

Major Solar Rooftop Orders

Crompton has secured substantial orders in the solar rooftop segment:

• A ₹52.00 crore order in Telangana
• Its largest-ever solar rooftop order of ₹445.00 crore in Andhra Pradesh

These orders, totaling nearly ₹500.00 crore, are expected to serve approximately 50,000 consumer households, marking a key milestone in Crompton's solar journey. The company plans to execute these projects within the next 6-12 months.

Expanding Solar Business

Crompton is actively strengthening its position in the solar market:

• Solar Pumps: The company has already executed orders worth ₹372.00 crore and installed about 60 MW of solar pumps, totaling over 12,000 units.
• Market Presence: Crompton operates in four states - Maharashtra, Rajasthan, Haryana, and Madhya Pradesh.
• Market Potential: The solar pumps market is estimated at ₹30,000-35,000 crore, supported by government initiatives like the PM KUSUM Scheme.

Strengthening Execution Capabilities

To support its growth in the solar sector, Crompton is enhancing its execution capabilities:

1. Design & Engineering: Dedicated team developing products as per MNRE norms
2. Procurement & Quality Assurance: Implementing diligent vendor selection and well-defined quality standards
3. Inspection & Audit: Multi-stage audit process and centralized monitoring
4. Strategic Partnerships: Establishing long-term partnerships and efficient site monitoring via Remote Monitoring Systems (RMS)
5. Distribution & After-Sales Network: Setting up dedicated service centers

Financial Performance

Crompton reported its Q2 results:

• Consolidated revenue stood at ₹1,916.00 crore, showing a modest 1% year-on-year growth.
• Adjusted EBITDA was ₹158.00 crore with a margin of 8.3%, declining year-on-year due to various factors including commodity inflation and pricing pressures.
• Adjusted PAT (excluding restructuring costs) was ₹91.00 crore.

Segment Performance

1. Electric Consumer Durables (ECD):

   • Revenue: ₹1,371.00 crore, down 1.5% YoY
   • Strong performance in Pumps and Small Domestic Appliances (SDA)
   • Fans and Large Domestic Appliances (LDA) faced challenges due to adverse weather conditions

2. Lighting:

   • Revenue: ₹261.00 crore, up 3.1% YoY
   • Volume growth rebounded to high-teens
   • B2C growth driven by ceiling lights and street/flood segments

3. Butterfly Gandhimathi Appliances Ltd:

   • Revenue: ₹293.00 crore, strong growth of 14% YoY
   • EBITDA grew by 21% YoY, driven by gross margin improvement

Management Commentary

Promeet Ghosh, MD & CEO of Crompton, commented on the company's performance: "Despite a challenging environment, our well-diversified product portfolio remained resilient with strong momentum in pumps, small domestic and kitchen appliances. We believe GST 2.0 will act as a structural catalyst to consumption, with benefits percolating to the durables segment in a phased manner."

He added, "These orders are expected to provide significant fillip to our direct to consume business and marks the beginning of a new growth engine, backed by the Company's proven excellence in execution and a robust supply chain network."

Crompton remains committed to strengthening its brand, expanding distribution, focusing on innovation, enhancing manufacturing capabilities, and investing in its people to capture future opportunities and sustain long-term growth.

As Crompton Greaves Consumer Electricals Limited continues to diversify and strengthen its position in the solar energy sector, the company appears well-positioned to capitalize on the growing demand for renewable energy solutions in India.