India's leading electrical equipment maker delivers a profit beat driven by cables strength and a strategic investment gain — even as revenue marginally misses estimates and Lloyd continues to face headwinds
Quick Facts at a Glance
|
Metric |
Q4 FY26 |
Q4 FY25 |
Change |
|
Consolidated Net Profit |
₹723.06 crore |
₹517.83 crore |
+39.6% YoY |
|
Revenue from Operations |
₹6,705.20 crore |
₹6,543.56 crore |
+2.47% YoY |
|
EBITDA |
₹729 crore |
₹757 crore |
-3.6% YoY |
|
EBITDA Margin |
10.9% |
11.6% |
-70 bps |
|
Final Dividend |
₹6 per share |
— |
600% on ₹1 FV |
|
Total FY26 Dividend |
₹10 per share |
— |
Interim ₹4 + Final ₹6 |
|
Full Year Revenue (FY26) |
₹22,527.77 crore |
— |
— |
|
Full Year Net Profit (FY26) |
₹1,689.25 crore |
— |
+14.5% YoY |
Overview: A Strong Profit Beat, A Modest Revenue Miss
Havells India on Wednesday, April 22, reported a 39.63% year-on-year surge in its consolidated net profit to ₹723.06 crore for Q4 FY26. Revenue from operations jumped 2.47% YoY to ₹6,705.20 crore, as against ₹6,543.56 crore in Q4 FY25.
The headline profit number was a substantial beat versus analyst expectations. However, revenue of ₹6,705 crore fell short of Bloomberg's estimate of ₹7,207 crore. The divergence between profit growth (+40%) and revenue growth (+2.47%) tells an important story: this was not purely an operational beat — a significant portion of the profit jump came from a one-time fair value gain on a strategic investment, which we break down in detail below.
Despite the mixed revenue picture, shares rose as much as 6.2% to ₹1,410.70 in Mumbai after the results, reflecting market appreciation of the strong bottom-line delivery.
The Dividend: ₹10 Total Payout for FY26
The board recommended a final dividend of ₹6 per equity share with a face value of ₹1 each, at a rate of 600% for FY26. This was in addition to the interim dividend of ₹4 per share declared during FY26. The Final Dividend, if approved by the shareholders at the forthcoming AGM, shall be paid/dispatched within 30 days of approval.
Dividend Summary for FY26:
|
Type |
Amount |
|
Interim Dividend (already paid) |
₹4 per share |
|
Final Dividend (recommended) |
₹6 per share |
|
Total FY26 Dividend |
₹10 per share |
|
Face Value |
₹1 per share |
|
Final Dividend Payout |
600% |
|
Subject to |
AGM shareholder approval |
The annualised dividend of ₹10 per share has been proposed for FY26, including a final dividend of ₹6 per share. This represents a meaningful step-up in total payouts compared to previous years and underscores management's confidence in Havells' free cash flow generation across its diversified business.
The Profit Driver: Goldi Solar Fair Value Gain
While Havells' operational performance was mixed, the key driver behind the exceptional 40% profit growth was a significant non-cash income item.
A significant driver for the Q4 FY26 bottom line was the valuation of strategic assets. Havells recognised a ₹283 crore 'fair value gain' on its financial asset, attributed to its ₹600 crore investment in Goldi Solar Private Limited made earlier in Q1 FY26.
Havells India made a ₹600 crore investment in Goldi Solar Private Limited to accelerate expansion in the renewable energy sector. The company also reached a significant settlement with the HPL Group, securing absolute rights to the 'HAVELLS' mark, which was recognised as an intangible asset on the balance sheet.
This fair value gain of ₹283 crore flowed directly through to the profit and loss statement in Q4 FY26, materially boosting the reported PAT. Investors should note that while this is a legitimate gain, it is a one-time item that will not recur in future quarters — making the underlying operational profit trajectory the more important metric to track for FY27.
Segment Performance: Cables Lead, Lloyd Lags
Havells' diversified business portfolio showed sharply divergent performance in Q4 FY26 — with infrastructure-linked segments performing strongly and consumer-facing categories facing headwinds.
Cables & Wires — The Star Performer
Revenue from the cable business was ₹2,474 crore in Q4 FY26, 14% higher than ₹2,169 crore in Q4 FY25. For the full year FY26, cable business revenue was 20.8% higher, reaching ₹8,677 crore from ₹7,184 crore in FY25.
Healthy growth in the cable business was led by strong growth in the power cable segment. This was partially offset by muted growth in the wires segment with channel inventory normalisation.
Cables now represent the single largest revenue segment for Havells, and the 14% Q4 growth is directly connected to India's infrastructure capex boom — power transmission projects, data centre construction, and real estate activity are all driving robust demand for power cables.
Switchgears — Steady Industrial Demand
Revenue from the Switchgears segment increased 6.4% to ₹736 crore in Q4 FY26. The Switchgears division maintained steady momentum, contributing ₹2,585 crore to total annual revenue.
Switchgears margins were impacted due to a lag in passing on cost increases; this is expected to normalise in coming quarters. Industrial and commercial construction activity driving switchgear demand remains healthy — the segment is expected to recover margin in FY27.
Lighting & Fixtures — Flat
Revenue from lighting and fixtures was flat at ₹438 crore in Q4 FY26. The lighting segment continues to face structural pricing pressure from LED commoditisation, though Havells' premium brand positioning partially insulates it from the worst of the competition.
Electrical Consumer Durables (ECD) — Small Decline
Electrical Consumer Durables (ECD) revenue slipped 2% to ₹976 crore in Q4 FY26. This segment, which includes fans, water heaters, and personal appliances, was impacted by a milder-than-expected start to the summer season.
Lloyd Consumer — The Biggest Challenge
Revenue from Lloyd Consumer, which Havells acquired in 2017, declined 19% to ₹1,514 crore in Q4 FY26.
The Lloyd Consumer segment faced headwinds, with revenue moderating by 22.9% on an annual basis due to a high base effect and unseasonal weather patterns affecting demand in the final quarter.
Lloyd, which includes air conditioners, washing machines, and televisions, had a strong Q4 FY25 base — making the year-on-year comparison particularly harsh. Additionally, a delayed and milder start to the summer cooling season in early 2026 meant channel partners were cautious about restocking air conditioners ahead of the peak season.
Full Q4 FY26 Segment Revenue Summary:
|
Segment |
Q4 FY26 Revenue |
YoY Change |
|
Cables & Wires |
₹2,474 crore |
+14% |
|
Switchgears |
₹736 crore |
+6.4% |
|
Lighting & Fixtures |
₹438 crore |
Flat |
|
Electrical Consumer Durables |
₹976 crore |
-2% |
|
Lloyd Consumer |
₹1,514 crore |
-19% |
EBITDA: The Operational Nuance
At an operational level, EBITDA stood at ₹729 crore for Q4 FY26, reflecting a 3.6% YoY decline from ₹757 crore in Q4 FY25. EBITDA margin contracted to 10.9% for the reporting quarter, from 11.6% in Q4 FY25.
The EBITDA contraction is a key concern — it signals that while Havells' cables business is growing strongly, the drag from Lloyd's revenue decline and margin pressure in switchgears is weighing on overall operating profitability. The 40% PAT growth was therefore powered largely by the ₹283 crore fair value gain on Goldi Solar, rather than pure operating improvement.
The surge in net profit was driven by a dramatic increase in other income, which reached ₹326 crore in Q4 FY26.
Full Year FY26: A Year of Divergence
Havells India closed the financial year with annual consolidated revenue of ₹22,527.77 crore and a full-year profit of ₹1,689.25 crore.
Annual net profit grew by 14.5% to ₹1,705 crore, demonstrating disciplined operational management despite global market challenges. Annual revenue reflected 3.3% growth over FY25.
The full-year picture reflects a company where the infrastructure-linked businesses (cables, switchgear) are performing very well, while consumer-facing categories (Lloyd, ECD) are navigating a more challenging demand environment.
CEO Commentary
Anil Rai Gupta, Chairman & Managing Director, Havells India, said: "Momentum in industrial and infrastructure-led categories remained strong. However, lower channel stocking in cooling products was seen due to a milder start to the summer season."
The commentary reflects the bifurcated nature of Havells' business — and the management's measured view that the cooling products headwind is seasonal rather than structural.
Leadership Changes
The board announced several key leadership transitions to strengthen its governance structure. Shri Varun Berry has been appointed as an Independent Director for a five-year term. Additionally, the company confirmed the re-appointment of Smt. Namrata Kaul, Shri Ashish Bharatram, Shri T V Mohandas Pai, and Shri Puneet Bhatia to the Board for further terms. The Board also placed on record its appreciation for Shri Vivek Mehra, who has stepped down as an Independent Director effective April 22, 2026.
Renewable Energy Strategy: Goldi Solar
The Goldi Solar investment is more than just a source of fair value gains — it signals Havells' strategic intent to expand into India's fast-growing renewable energy components space.
Havells made a ₹600 crore investment in Goldi Solar Private Limited to accelerate expansion in the renewable energy sector. This investment has been measured at fair value, and the ₹283 crore gain was recognised as a 'Fair value gain on financial asset' in Q4 FY26.
Goldi Solar is one of India's leading solar panel manufacturers, and Havells' stake positions it to benefit from India's rapid solar capacity build-out — a structural growth theme that will play out over the next decade.
Market Reaction & Valuation
Havells is better positioned than its peers due to a diversified portfolio and greater reliance on segments such as wires, cables and switchgear, analysts said.
The stock gained 2.9% for the day, outperforming the Nifty 50's 0.7% decline, though it is down 17% over the past year and 3% year-to-date.
Havells India operates in India's growing electrical equipment and consumer durables markets, benefiting from infrastructure development and rising incomes. The electrical equipment sector is estimated to grow 12–15% annually. However, Havells' P/E ratio of around 55x appears high compared to competitors. Crompton Greaves Consumer Electricals trades at 30–36x, while Polycab India is in the 40–55x range.
Frequently Asked Questions
Q.1 What was Havells India's net profit in Q4 FY26?
Havells India reported a consolidated net profit of ₹723.06 crore for Q4 FY26, marking a 39.63% increase year-on-year from ₹517.83 crore in Q4 FY25.
Q.2 What dividend has Havells India declared for FY26?
The board recommended a final dividend of ₹6 per equity share with a face value of ₹1 each, at a rate of 600% for FY26. This is in addition to the interim dividend of ₹4 per share declared earlier, bringing the total FY26 dividend to ₹10 per share. The final dividend is subject to shareholder approval at the AGM and will be paid within 30 days of that approval.
Q.3 What was Havells India's Q4 FY26 revenue?
Revenue from operations was ₹6,705.20 crore in Q4 FY26, up 2.47% year-on-year from ₹6,543.56 crore in Q4 FY25. However, this missed Bloomberg's estimate of ₹7,207 crore.
Q.4 Why did Havells' profit jump 40% despite modest revenue growth?
The sharp 40% profit growth was significantly boosted by a ₹283 crore fair value gain on Havells' ₹600 crore investment in Goldi Solar Private Limited, recognised as 'other income' in Q4 FY26. This is a one-time item. At the EBITDA level, operating profit actually declined 3.6% year-on-year.
Q.5 Which was Havells India's best-performing segment in Q4 FY26?
The cables segment was the standout performer, with revenue up 14% to ₹2,474 crore in Q4 FY26, led by strong growth in the power cable segment. For the full year FY26, cable business revenue was 20.8% higher at ₹8,677 crore.
