Havells India slips 3% after Q3 profit miss estimates; brokerages divided

Havells India shares came under pressure after the company's December quarter (Q3FY26) results, released on Monday post-market, missed some of the Street's expectations

Havells India share price slipped 3.2 per cent in trade, registering an intra-day low at ₹1,398.10 per share on BSE. At 10:29 AM, Havells India shares were trading 2.79 per cent lower at ₹1,404.9 per share. In comparison, the BSE Sensex was down 0.32 per cent at 82,982.13.

 

The stock came under pressure after Havells’ December quarter (Q3FY26) results, released on Monday post-market, missed some of the Street’s expectations. The company reported a net profit of ₹300.78 crore for the quarter, below Bloomberg’s estimate of ₹344.1 crore.

 

Its revenue came in at ₹5,587.89, which was above the estimate of ₹5,385.08 crore. However, the Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at ₹482.4 crore, below Street’s estimate of ₹507.87 crore. 

 

Brokerage’s view on Havells India

Motilal Oswal Financial Services has reiterated its ‘Neutral’ rating with a target of ₹1,590. The brokerage said Havells India’s Q3FY26 earnings were below its estimate as margins remained under pressure across the cables and wires (C&W), Lloyd, and cable segments.

 

Going forward, the inventory situation of room air conditioners (RACs), the implementation of price hikes due to the new Bureau of Energy Efficiency (BEE) norms, raw material cost inflation, and growth in the C&W segment amid copper price fluctuations will be the key monitorables, the brokerage noted. 

 

Similarly, JM Financial Institutional Securities said Havells’ Q3FY26 adjusted profit after tax (PAT) came in slightly below its expectations, while Ebitda was in line and revenue exceeded estimates. 

 

The brokerage noted that Lloyd Consumer performed better than expected, with segment revenue declining 6 per cent year-on-year (Y-o-Y), compared with expectations of an 8 per cent Y-o-Y fall. Management indicated that channel inventory at Lloyd should normalise as the summer season begins in southern India from the end of February 2026. It also plans price hikes of 5–10 per cent in Q4FY26 to offset rising input costs.

 

In cables & wires, management highlighted volume growth of over 20 per cent, supported by rising copper prices. Capacity utilisation stood at 65–70 per cent in wires and 90–100 per cent in cables as of December 2025. On the back of stronger C&W performance, JM Financial raised its FY26E EPS estimate by 3 per cent, while FY27E and FY28E EPS estimates remain largely unchanged. The brokerage maintained a ‘Buy’ rating on Havells with an unchanged target price of ₹1,750 per share. 

 

Meanwhile, Nomura maintained ‘Buy’ and hiked its target to ₹1,798 from ₹1,769 per share. 

The brokerage expects strong demand from infrastructure/construction and cable capacity ramp-up to support C&W growth. It said a broader recovery in consumption-led segments is important to drive operating leverage and margin expansion, while near-term commodity inflation and pass-through remain key monitorables.  Nomura maintained its forecasts of 18 per cent revenue compound annual growth rate (CAGR) and expects Ebitda margin to improve from 9.7 per cent in FY26F to 11.5 per cent in FY28F, translating into 28 per cent earnings per share (EPS) CAGR.  Goldman Sachs reiterated 'Buy' and raised its target to ₹1,880 from ₹1,730. The brokerage reckons goods and services tax (GST) reduction is expected to help the RAC business to pass on increasing costs, solar products should continue the momentum seen in this quarter and increase in contribution, and other segments have favourable base - all of which augur well for outer quarters growth.  Earnings downgrade cycle is over for Havells, according to analysts, and with growth likely to accelerate, they see room for positive operating leverage. While commodity prices will put pressure on margins across electricals, a diversified

player with C&W exposure like Havells looks well protected, noted Goldman Sachs. 

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