Crompton Greaves Consumer shares gain 4% on posting modest Q3 results

Crompton Greaves Consumer Electricals share price gained 4.2 per cent, logging an intra-day high at ₹255.3 on BSE. At 10:08 AM, Crompton Greaves’ shares were trading 3.9 per cent higher at ₹254.45 per share. In comparison, the BSE Sensex was up 0.47 per cent at 83,970.36. 

 

The buying on the counter came after the company released its Q3FY26 numbers on Friday, after market hours. Brokerages believe the company posted modest numbers.

 

In the December quarter, Crompton Greaves Consumer Electronics reported a 10.5 per cent year-on-year (Y-o-Y) drop in consolidated net profit, attributable to owners, at ₹98.31 crore, as compared to ₹109.84 crore a year ago.  

 

Its revenue from operations on a consolidated basis came in at ₹1,898.3 crore, as compared to ₹1,769.36 crore Y-o-Y. Check detailed results here 

Brokerages’ view on Crompton Greaves Consumer Electronics 

ICICI Securities | Buy | Target cut to ₹300 from ₹340

ICICI Securities said Crompton Greaves Consumer Electricals delivered a modest Q3FY26 performance, supported by strength in solar pumps and winter-led categories. The brokerage highlighted that the company has entered new verticals—residential wires, mobile accessories, and power solutions—and plans to leverage its brand and distribution network to scale these businesses, while continuing to gain market share in its core categories. 

 

It noted that the solar pumps business doubled Y-o-Y on strong execution, and the large domestic appliances (LDA) segment posted double-digit volume growth, led by water and room heaters, with Crompton emerging as the No. 2 water-heater brand in general trade. However, fans remained under pressure due to muted offtake of TPW and elevated commodity inflation, though management expects price hikes in Q4FY26 and Q1FY27 to offset cost pressures. 

 

ICICI Securities added that the lighting business saw margin expansion, driven by double-digit volume growth across B2B and B2C, improved mix, and new product launches.

Motilal Oswal Financial Services | Buy | Target ₹350

Motilal Oswal said Crompton Greaves delivered a Q3FY26 performance ahead of its estimates, led by better-than-expected performance in the electrical consumer durables (ECD) segment and sequential margin improvement. The company has also announced its entry into the cables & wires (C&W) segment, with manufacturing to be outsourced and product rollouts expected in the coming weeks. Motilal noted that the execution and performance of this new vertical will be a key monitorable going forward.

 

The brokerage expects the company to post a revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/ profit after tax (PAT) compound annual growth rate (CAGR) of 8 per cent/14 per cent/17 per cent over FY26–28, supported by operating leverage and portfolio expansion. Operating profit margin (OPM) is estimated to expand to around 11 per cent by FY28E from about 10 per cent in FY26, while RoIC is projected to improve to 22 per cent by FY28 from 16 per cent in FY26. RoE is also expected to rise to 14 per cent in FY28 from 12 per cent in FY26E.

 

JM Financial Institutional Securities | Buy | Target cut to ₹315 from ₹370

 

JM Financial noted that Crompton Greaves Consumer Electricals reported Q3 revenue largely in line with expectations, while margins surprised positively. This outperformance was driven by improved operational efficiency, timely pricing actions, and a superior product mix. The company also announced its entry into residential wires, a strategic move to expand its addressable market. The product rollout will begin in select markets over the next 6–7 weeks, followed by a phased pan-India expansion using an outsourced manufacturing model.

 

The brokerage upgraded its FY26 earnings per share (EPS) estimates by 4 per cent to factor Q3 performance, while FY27/28E estimates remain unchanged. However, Crompton has been trading at <-1SD of its 1-yr forward P/E over 5 years. To factor this in, the brokerage cut the target multiple to 29x (-1SD) from 35x (mean 1-yr forward P/E).

 

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