Havells India gains despite Q1 profit drop; is long-term bet worth it?

Havells India reported a 14.72 per cent Y-o-Y decline in consolidated profit after tax to ₹347.53 crore in Q1FY26

Shares of Havells India rose even after it reported a 15 per cent year-on-year (Y-o-Y) drop in its June quarter net profit as analysts remained upbeat over the medium term given the demand recovery. 

 

The consumer electronics major's stock rose as much as 1.56 per cent during the day to ₹1,555 per share. The stock pared some gains to trade 0.45 per cent higher at ₹1,538 apiece, compared to a 0.15 per cent advance in Nifty 50 as of 9:34 AM.   CATCH STOCK MARKET LIVE UPDATES TODAY

Havells India Q1 results 

The Noida-based company reported a 14.72 per cent Y-o-Y decline in consolidated profit after tax (PAT) to ₹347.53 crore in Q1FY26. The company also reported a 6.10 per cent YoY fall in consolidated total income, amounting to ₹5,524.53 crore for the quarter under review.

 

 

The consolidated total expenses of the company remained flat at ₹5,054.78 crore in Q1 FY26, compared to ₹5,334.54 crore in the same quarter of the previous financial year. 

Havells India segment-wise performance

The company's best-performing segment was the cable business, which generated ₹1,933.22 crore in revenue in Q1 FY26, marking a 27 per cent YoY increase. The company attributed this rise to capacity expansion and strong industrial-infrastructure demand.

 

However, revenue from Lloyd Consumer declined 34.11 per cent YoY to ₹1,271.11 crore in Q1 FY26. "Lloyd's performance was impacted by a weak summer season compared to a strong season last year and flattish growth in the first half (H1) of calendar year 2025 (January to June)," the company said.

 

In the electrical consumer durables (ECD) segment, unseasonal rains and a shorter summer season impacted demand for fans and air coolers.

Analysts on Havells India Q1 results 

Nuvama Institutional Equities said that the cable business offset the weak Q1 results with healthy margin and volume growth. Unseasonal rains and a shortened summer further aggravated the weak consumer sentiment, the brokerage said. 

 

Analysts expect the weak showing is a near-term concern, and anticipate the performance to ramp up over medium term as inventory normalises and consumer demand strengthens. Nuvama trimmed their FY26–28 earnings per share (EPS) by 3-5 per cent, which is 6-8 per cent below consensus. 

 

Antique Stock Broking said that Havells has built multiple growth levers by expanding its product portfolio in the core electricals segment and entering the white goods category through the Lloyd acquisition. This positions it well to benefit from a recovery in consumer discretionary demand.

 

Following a weak Q1FY26 performance, especially in Lloyd and the Electrical Consumer Durables (ECD) segment, Antique Stock Broking cut their FY26 and FY27 estimates by 6 per cent and 10 per cent, respectively. Analysts retained the 'Buy' rating on the stock with a revised target price of ₹1,797.  

 

Centrum Broking said that Havells' operating margin and PAT missed their consensus estimates by 9-10 per cent. Muted summer and weak consumer demand weighed on performance, although industrial and infrastructure-led demand remained resilient, it said. 

 

Management sees Q1 headwinds as seasonal and expects recovery in consumer demand and the real estate sector in the second half of FY26, Centrum noted, adding that expanding rural reach remains a key growth lever. Analysts cut their FY26 EPS estimates by 11 per cent and retained their 'Add' rating with a revised target price of ₹1,745 per share. 

Havells share price movement

Shares of the company rose for the second straight day but have been range-bound since May. The counter has fallen 8.3 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. Havells has a total market capitalisation of ₹96,458.08 crore.