Havells Q1 Profit Slips 16.7% To Rs 290 Crore As Margins Shrink, Lloyd Stays In The Red
Havells India missed estimates with net profit down 16.7% YoY to Rs 290 crore despite 19.5% revenue growth to Rs 6,518 crore. EBITDA fell 9.5% and margins contracted to 7.2% from 9.4%. Cables led growth (+27% to Rs 2,456 crore) but Lloyd appliances posted a Rs 56.3 crore EBIT loss.
What happened
Havells India Q1 net profit fell 16.7% to Rs 290 crore, missing estimates as margins contracted and Lloyd consumer appliances stayed loss-making, despite 19.5%
Key facts
- Net profit Rs 290 crore, down 16.7% YoY
- Revenue Rs 6,518 crore, up 19.5%
- EBITDA Rs 467 crore, down 9.5%
- EBITDA margin 7.2% vs 9.4%
- Lloyd EBIT loss Rs 56.3 crore
- Cables revenue up 27% to Rs 2,456 crore
Why this matters
Persistent Lloyd losses raise questions about whether the appliances business is worth continued investment, a JV, or divestiture as cables emerge as the clear value driver.
What to watch
- Copper and aluminum price trends impacting cables margin
- Lloyd quarterly EBIT trajectory toward breakeven
- Consumer durables demand recovery / monsoon impact on AC volumes
- Gross margin vs EBITDA margin gap signaling opex leverage
- Cables segment growth sustainability above 20%
- Sell-side analysts trim FY26 EPS estimates and adjust target prices on margin miss
- Management guidance on Lloyd breakeven timeline and price hikes to offset input costs
- Cost pass-through via product price increases in cables and switchgear
- Increased ad/promo spend to defend Lloyd market share against Voltas/Blue Star