Summary:
Crompton Greaves Consumer Electricals reported a 15% year-on-year rise in Q1 FY27 net profit to ₹141 crore, supported by double-digit revenue growth across key business segments. Despite higher revenue and improved margins, the results missed market expectations, leading to a decline in the company's share price. Management remains focused on premiumisation, innovation and expanding its consumer electrical portfolio while monitoring commodity costs and demand trends.
Consolidated net profit of Crompton Greaves Consumer Electricals Ltd came in strong for the first quarter of FY27, growing 14.8% YoY to ₹141 crore versus ₹122 crore in Q1 of FY26.
Total income for the quarter witnessed an increase of 11.8% YoY to ₹2,235 crore versus ₹1,998 crore in Q1 FY26. The company’s EBITDA grew 14.2% YoY to ₹224.4 crore against ₹192 crore in the corresponding quarter.
The EBITDA margin stood at 10% in Q1 FY27 as against 9.6% in Q1 FY26, driven by pricing, operating leverage and cost management.
Despite that, the quarterly performance fell short of market expectations, as revenue, EBITDA and net profit were lower than market estimates of ₹2,300 crore, ₹232 crore and ₹143 crore, respectively.
Segment-wise Performance Remains Positive
The company was able to deliver double-digit revenue growth in all of its important segments for the quarter. The company had calibrated price increases in the range of high single digits to low double digits across categories to counteract commodity price inflation and increased input costs.
ECD was one of the best performing segments, where fans did well despite supply issues. The BLDC fan portfolio recorded record high quarterly sales growth in the 44% range on back of new product launches including Elevate and Fluido. EBIT margin in ECD improved by 20 basis points to 13.5%.
The pumps segment was able to deliver growth across categories despite supply issues and increased costs of commodities. The company also entered into the B2C solar pumps business during the quarter.
Take a Look at the Electrical & Electronics Sector
Domestic appliances segment delivered double-digit growth, with water heaters being the driver for growth. The company has been increasing its position in the water heater category through both trade and online channels, while the kitchen appliance category has continued to do well through induction cooktops, cooktops and air fryers.
Lighting and Butterfly Business Performance
The lighting category managed to retain sequential momentum, thanks to strong double-digit growth in B2C and B2B segments. The B2C lighting growth was backed by ceiling lights and new product launches, whereas the B2B growth was backed by commercial installations, industrial lighting and street lighting.
Important projects were Google data center, NTT data center, ISRO, Tata Steel and JSW. However, EBIT margin decreased because of higher input cost in pre-contracted B2B orders. EBIT in lighting category grew 9.2% YoY to ₹32 crore, with an EBIT margin of 12%.
Butterfly business generated revenues of 14.1% YoY to ₹214 crore, helped by growth in offline and online channels. EBITDA grew 17.2% YoY to ₹15 crore, whereas EBITDA margin stood at 7%.
Why Crompton Greaves Share Price Fell After Q1 Results
Even as revenue witnessed an impressive growth along with increased profits, shares of Crompton Greaves fell by 5.85% to ₹254.20 in August 7 trade due to the quarterly results being slightly under par.
In addition to this, there was investor concern related to the possible effect of inflation on the commodities along with competition and margins. Though the company was able to improve its margins on account of price increases and other cost measures, future expansion was of concern.
Outlook for Crompton Greaves
The Crompton Greaves remains committed to innovation, premiumization, and expansion in consumer electrical segments. Sustained growth in BLDC fans, pumps, appliances, and Butterfly products is a positive indication.
The future performance of the company will hinge on the revival of consumer demand, movement in commodity prices, and margins.
