Shares of Havells India fell sharply on Wednesday, declining 6.5 per cent on the NSE to ₹1,260.10 after the company reported a mixed set of fourth-quarter earnings, with subdued revenue growth and weak segmental performance weighing on investor sentiment.
The decline came despite a strong rise in profitability. Havells reported a standalone net profit of ₹734.24 crore for the quarter ended March 2026, up 40.5 per cent year-on-year from ₹522.26 crore. On a consolidated basis, net profit rose 39.9 per cent to ₹723.39 crore compared with ₹517 crore in the year-ago period.
However, revenue growth remained tepid. The company’s revenue from operations increased just 2.47 per cent year-on-year to ₹6,705.20 crore, highlighting sluggish demand conditions across key segments. Havells attributed the modest performance to a weaker start to the summer season, which impacted sales of cooling products, a crucial category for the company.
The earnings disappointment was further reflected in operational metrics. Several brokerages pointed to weaker-than-expected EBITDA performance and soft demand in consumer-facing segments, particularly the Lloyd business, which saw a sharp decline. CLSA maintained an outperform rating with a target price of ₹1,535 but noted that the company reported weak fourth-quarter results, with Ebitda declining 6 per cent year-on-year and revenue growth of just 2 per cent. It said unseasonal rains, a delayed summer and pre-buying trends hit cooling product sales, though it expects a stronger first quarter of FY27 on a favorable base.
HSBC retained a buy rating but cut its target price to ₹1,560, calling the quarter “unimpressive.” It highlighted that Lloyd’s revenue fell 19 per cent year-on-year, dragging overall performance, even as cables and wires and solar segments showed strong growth. Nomura also reiterated a buy rating with a target of ₹1,620, stating that while the fourth quarter was ahead of expectations in some areas, it has trimmed revenue and margin estimates due to cost pressures. It expects consumption recovery and a normal summer to act as key growth catalysts going forward.
Macquarie, which has an outperform rating and a target of ₹1,588, described the quarter as good on margins but warned of demand risks stemming from macroeconomic uncertainty, including geopolitical tensions in the Middle East. It added that cables continue to be the primary growth driver for the company.
Jefferies took a more cautious stance, maintaining a hold rating with a target price of ₹1,290. It noted that while cables and wires remained a bright spot, weakness in consumer products and continued losses in the Lloyd segment weighed on overall performance. The brokerage added that valuations remain slightly above long-term averages.
Citi also maintained a neutral stance, cutting its target price to ₹1,500 from ₹1,600, citing “more misses than hits” in the quarter. It flagged rising competition in the cables and wires segment and said sustained growth and margin improvement would be critical for any re-rating.
Motilal Oswal retained a neutral rating with a target of ₹1,349, noting that while industrial and infrastructure-linked segments showed strong momentum, consumer categories remained subdued due to cost pressures. It added that demand for cooling products has started picking up recently, but the company has refrained from giving growth guidance amid uncertain macro conditions.
Overall, while Havells delivered robust profit growth, weak revenue traction, seasonal disruptions and concerns around consumer demand and margins triggered a negative market reaction, leading to the sharp fall in its share price.
Published on April 23, 2026