Shares of Havells India experienced a significant drop on Wednesday, declining by 6.5 percent on the National Stock Exchange (NSE) to ₹1,260.30. This decline followed the company’s mixed fourth-quarter earnings report, which revealed subdued revenue growth and weak segmental performance, negatively impacting investor sentiment.
Despite the downturn, Havells reported a noteworthy increase in profitability. The company’s standalone net profit for the quarter ending March 2026 reached ₹734.24 crore, a 40.5 percent increase year-on-year from ₹522.26 crore. On a consolidated basis, net profit rose by 39.9 percent to ₹723.39 crore compared to ₹517 crore in the same period the previous year.
However, revenue growth was lackluster. The revenue from operations grew only 2.47 percent year-on-year to ₹6,705.20 crore, reflecting sluggish demand conditions in key segments. Havells attributed this modest performance to a weak onset of the summer season, which adversely affected sales of cooling products, an essential category for the company.
Several brokerages maintained their bullish outlook on Havells but pointed out the weaker-than-expected EBITDA performance and soft demand in consumer-facing segments, particularly the Lloyd brand, which suffered a noticeable decline.
CLSA maintained an “Outperform” rating with a target price of ₹1,535 but acknowledged the weak fourth-quarter results, noting a 6 percent year-on-year decline in EBITDA alongside only 2 percent revenue growth. The brokerage cited unseasonal rains, a delayed summer, and pre-buying trends as detrimental to cooling product sales, although it anticipates a stronger first quarter of FY27 due to a favorable comparison base.
HSBC retained a “Buy” rating while lowering its target price to ₹1,560, describing the quarter as “unimpressive.” The report highlighted a 19 percent year-on-year drop in Lloyd’s revenue, impacting overall performance, despite growth in cables, wires, and solar segments.
Nomura reiterated a “Buy” rating with a target of ₹1,620, indicating that while some areas of the fourth quarter exceeded expectations, they adjusted revenue and margin forecasts due to cost pressures. The firm anticipates that recovery in consumption and a normalized summer will serve as key growth drivers moving forward.
Macquarie, holding an “Outperform” rating and a target of ₹1,588, characterized the quarter as strong in terms of margins but expressed concerns over demand risks tied to macroeconomic uncertainties, including geopolitical tensions in the Middle East. They noted that cables remain the main growth driver for the company.
Jefferies adopted a more cautious viewpoint, maintaining a “Hold” rating with a revised target price of ₹1,290, acknowledging that while cables and wires performed well, weaknesses in consumer products and ongoing losses in the Lloyd division constrained overall results. The brokerage remarked that valuations are slightly above long-term averages.
Citi also maintained a “Neutral” stance, reducing its target price to ₹1,500 from ₹1,600, citing “more misses than hits” in the quarter. Rising competition in the cables and wires segment was flagged, emphasizing that sustained growth and margin improvements will be vital for any potential re-rating.
Motilal Oswal kept a neutral rating with a target of ₹1,349, observing strong momentum in industrial and infrastructure-linked segments, while consumer categories remained under pressure due to cost constraints. The demand for cooling products has recently begun to improve, but the company has refrained from providing growth guidance amid uncertain macroeconomic conditions.
In summary, while Havells reported strong profit growth, weak revenue performance, seasonal challenges, and concerns regarding consumer demand and margins triggered a negative market response, resulting in a sharp decline in its share price.
