Havells India Limited delivered a mixed performance in Q3FY26, with revenue growth beating Street expectations while profit fell short of analyst estimates. The company reported its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, showcasing steady demand recovery but continued margin pressures.

Financial Performance vs Street Estimates

The company's standalone net profit came in at ₹301.36 crores, missing the CNBC-TV18 poll estimate of ₹346 crores. However, this represented a 6.6% year-on-year growth from ₹282.81 crores in Q3FY25. Revenue from operations reached ₹5,573.44 crores, marginally ahead of market expectations of ₹5,354 crores and marking a robust 14.2% growth over the previous year.

Operating Performance Analysis

Operating performance remained broadly in line with estimates, with EBITDA standing at ₹524 crores versus the Street forecast of ₹518 crores. The EBITDA margin at 9.40% was slightly below the expected 9.70% but showed significant improvement from 8.80% in the year-ago period. This reflects better operating leverage and cost controls despite margin pressures.

Segment-wise Revenue Performance

The company's diversified business portfolio demonstrated varied performance across segments during Q3FY26, with cables leading growth while some consumer segments faced headwinds.

Dividend Declaration and Corporate Actions

Alongside the financial results, Havells announced an interim dividend of ₹4.00 per equity share of face value ₹1.00 each, representing a 400% payout on the company's equity capital. The dividend will be paid to shareholders whose names appear in the register of members as on January 23, 2026, with payment scheduled on or before February 17, 2026.

The Board also approved the launch of an employee stock purchase plan, titled the "Havells Employees Stock Purchase Scheme 2026", aimed at improving employee engagement and long-term retention. The proposal will be placed before shareholders for approval at the company's forthcoming annual general meeting.

Nine-Month Performance and Strategic Developments

For the nine months ended December 31, 2025, Havells maintained steady growth momentum with revenue from operations of ₹15,777.88 crores compared to ₹15,213.60 crores in the corresponding period last year, reflecting a 3.7% increase. Net profit for the nine-month period reached ₹971.18 crores, marginally higher than ₹966.58 crores in the previous year.

The company recognized an exceptional item of ₹45.03 crores during the quarter due to incremental employee benefit obligations arising from the implementation of New Labour Codes. During the current quarter, Havells executed a settlement agreement with HPL Group regarding the 'HAVELLS' trademark, recognizing ₹129.60 crores as an intangible asset.

Consolidated Results

On a consolidated basis, Havells reported revenue from operations of ₹5,587.89 crores for Q3FY26 compared to ₹4,888.98 crores in Q3FY25, representing a 14.3% year-on-year growth. Consolidated net profit stood at ₹300.05 crores versus ₹277.96 crores in the corresponding quarter last year, marking a 7.9% increase.

Havells India Limited announced its consolidated financial results for the third quarter ended December 31, 2025, showing strong revenue growth but missing analyst expectations on profitability. The company's Board of Directors approved these results at their meeting held on January 19, 2026, along with key strategic decisions including dividend declaration and employee benefit initiatives.

Consolidated Financial Performance

The company delivered robust revenue growth in Q3FY26 on a consolidated basis, with total revenue reaching ₹55.87 billion compared to ₹48.89 billion in the corresponding quarter of the previous year, representing a 14.3% year-on-year increase. However, the consolidated net profit of ₹3.00 billion, while showing a 7.1% growth from ₹2.80 billion in Q3FY25, fell short of analyst estimates of ₹3.86 billion.

Standalone Performance Analysis

On a standalone basis, the company reported revenue from operations of ₹5,573.44 crores, marking a 14.1% year-on-year growth from ₹4,882.50 crores in Q3FY25. Standalone net profit increased by 6.6% to ₹301.36 crores compared to ₹282.81 crores in the previous year, with basic earnings per share improving to ₹4.80 from ₹4.51.

Segment-wise Revenue Performance

The company's diversified business portfolio showed mixed performance across different segments during the quarter. The Cables segment emerged as the largest revenue contributor, while Lloyd Consumer faced challenges during the traditionally slower winter season.

Exceptional Items and Regulatory Impact

The quarter's results were affected by an exceptional item of ₹45.03 crores related to the implementation of New Labour Codes. The Ministry of Labour and Employment consolidated multiple existing labour legislations into four unified Labour Codes, which became effective from November 21, 2025. The company reassessed its employee benefit obligations according to the revised definition of wages, resulting in this incremental liability recognition.

Board Decisions and Shareholder Returns

The Board of Directors declared an interim dividend of ₹4.00 per equity share of ₹1 each, representing a 400% dividend on the paid-up equity share capital. The dividend will be paid to shareholders whose names appear in the Register of Members as on the record date of January 23, 2026, with payment scheduled on or before February 17, 2026.

Strategic Initiatives

The Board approved the introduction of "Havells Employees Stock Purchase Scheme 2026" based on recommendations from the Nomination and Remuneration Committee. This scheme, framed in accordance with SEBI regulations, will be presented for shareholder approval at the company's next Annual General Meeting. Additionally, during the current quarter, the company executed a settlement agreement with HPL Group regarding the 'HAVELLS' trademark, recognizing a settlement amount of ₹129.60 crores as an intangible asset.