Havells India Q4 & FY26 Results: Profit Jumps 40.6% on Strategic Gains

Q4 FY26: Profit Boosted by Investment Gains

Havells reported a Net Profit of ₹734 crores, showing an appreciable rise of 40.6% from ₹522 crores in the last quarter of FY26. This massive increase in profits is attributed to the fair value adjustment gain of ₹283 crores that the company received after investing ₹600 crores in Goldi Solar Pvt Ltd during the first quarter of FY26.

Regarding income generation, the company earned ₹6,688 crores, displaying a slight rise of 2.4% from ₹6,532 crores. Despite satisfactory results in income generation, the company faced challenges while operating due to the fall in the EBITDA, which dropped from ₹761 crores to ₹728 crores, representing a 4.4% decline. Moreover, the EBITDA margin also fell from 11.6% to 10.9%.

According to Havells, their income growth was due to the growth in industrial infrastructure products; however, the consumer products faced challenging times.

Segment Performance: Mixed Trends Across Portfolio

The growth rate of Cables was once again highest among the product segments at 14% to ₹2,474 crores, backed by strong growth in power cables sales. The Wire segment on the other hand showed muted growth in the quarter due to inventory management issues in the channel.

The Switch Gears business showed constant growth rates of 6.4% recording revenues at ₹736 crores. Revenues from the Lighting & Fixtures business segment grew marginally at ₹438 crores due to stability of the price of LEDs.

Electrical Consumer Durables grew revenues by 2% YoY at ₹976 crores in the quarter due to an early summer and unseasonal rain which negatively impacted sales of seasonal products such as fans and air coolers. The Consumer segment through its brand Lloyd showed growth at -19% at ₹1,514 crores owing to strong base effect and delayed demand for seasonal goods.

However, the renewable energy segment under Others segment showed strong growth at 48.8% revenues of ₹550 crores.

FY26 Performance: Steady Growth Led by Cables

Total net income in FY26 stood at ₹22,466 crores, marking a 3.3% improvement compared to last fiscal year. On the other hand, profit after taxes recorded an impressive 14.5% jump to ₹1,705 crores from ₹1,489 crores.

The earnings before interest, taxes, depreciation, and amortization also saw an increase of 3%, settling at ₹2,213 crores. Cables played a significant role in driving top-line growth, bringing in ₹8,677 crores in annual income, representing a massive 20.8% jump.

The contribution to Lloyd towards annual losses was noted in the decrease of 22.9% in annual income at ₹3,94

Balance Sheet Strength and Capex Expansion

Havells' balance sheet demonstrates that the company was financially sound with cash and cash equivalents totaling ₹2,351 crores at the end of March 31, 2026. The company invested significantly in capital expenditures to the tune of ₹1,484 crores during FY26 compared to ₹753 crores during FY25.

This was done with the purpose of increasing the production capacity of cables and refrigerators.

Profitability Ratios Remain Healthy

The return ratios have been favorable for the company, as ROE stands at 19.2%, while ROCE is recorded at 25.1%. It can be inferred that Havells is utilizing its resources to produce profit despite fluctuations in demand.

Conclusion

The quarter Q4FY26 saw good performance by Havells India, mainly due to outstanding returns on its investments. However, the company's operations have been under pressure because of poor consumer demand as well as escalating costs. The cable division is doing well, while renewable energy seems to be the area to look at in the future. Yet the weak performance of Lloyd and consumer durables indicates otherwise.