Havells India Limited Q3 FY26 Earnings Call Summary

Summary

Havells India Limited - Q3 FY 2026 Earnings Call Summary Monday, January 19, 2026 4:00 PM

Event Participants

Executives 4 Anil Rai Gupta (CMD), Ameet Kumar Gupta (Whole-time Director), Rajesh Kumar Gupta (WTD & Group CFO), Rajiv Goel (Executive Director)

Analysts 10 Achal Lohade, Aditya Bhartia, Aniruddha Joshi, Ashish Kanodia, Karan Gupta, Latika Chopra, Natasha Jain, Praveen Sahay, Rahul Agarwal, Renu, Siddhartha Bera

Financials & KPIs

Geographic & Segment Commentary

• Cables & Wires: Strongest performer this quarter with >20% volume growth. While domestic wires saw channel stocking due to rising copper prices, industrial cables were constrained by 90-100% capacity utilization.
• Lloyd (Consumer Durables): Challenging last two quarters due to weak summer demand in the previous year. Channel inventory is now normalizing, and the segment is preparing for the upcoming season with new BEE-compliant products.
• Electrical Consumer Durables (ECD): Performance was buoyed by winter products (OFR and water heaters), where Havells maintains market leadership. Fans remained sluggish but are expected to recover as summer stocking begins.
• Other (Solar/Renewables): Solar is outpacing other categories within this segment, driven by modules and inverters. Management is pivoting toward a “renewable ecosystem” play rather than simple manufacturing.

Company-Specific & Strategic Commentary

• Solar Strategy: Invested ₹600 crores in Goldi Solar to secure strategic supply of modules and eventual backward integration into cells. The company aims to be a service and ecosystem provider (inverters, switchgear, EPC) rather than a pure-play manufacturer.
• Capacity Expansion: Cables and wires capacity expansion is ongoing to address high utilization in the cable segment. A new R&D center is also slated for the coming fiscal year.
• Premiumization & Efficiency: Focus remains on innovation-led differentiation and brand building to maintain margins. Management noted that higher scale is providing operating leverage to offset short-term cost pressures.
• BEE Transition: Transitioning to new BEE norms for fans and ACs; old inventory is expected to be liquidated in early Q4 FY26 as the season kicks off in South India.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Cables & Wires Performance

• Question: What is driving the mismatch between Cable & Wire growth and other categories? (Aditya Bhartia)
• Answer: Growth in cables is tied to government infra spend; wires saw tactical channel stocking due to continuous price increases. Other categories like fans are coming off a weak summer cycle. (Anil Rai Gupta)

Lloyd Inventory & Pricing

• Question: How will you liquidate old BEE norm inventory for ACs? (Aditya Bhartia)
• Answer: Trade is mature and buys old norms at lower prices; these will be cleared first during the upcoming season (Feb/Mar). (Anil Rai Gupta)
• Question: Will price hikes impact consumers? (Praveen Sahay)
• Answer: A 5-10% hike is needed, but potential GST corrections may offset this, keeping end-consumer prices stable. (Rajiv Goel)

Solar & Strategic Investment

• Question: What is the rationale for the Goldi Solar investment? (Karan Gupta)
• Answer: It ensures strategic supply of modules as Goldi backward integrates into cells/wafers. Havells will focus on being an ecosystem provider (inverters, cables, switchgear). (Rajiv Goel)

Margin Sustainability

• Question: How will you manage margin pressure from copper hitting $13,000? (Achal Lohade)
• Answer: Price increases were taken for December materials; the company will continue to evaluate further hikes as the season pans out. (Anil Rai Gupta)

Key Takeaway

Havells India delivered a resilient Q3 FY26 with 14% revenue growth, significantly bolstered by a >20% volume surge in the Cables & Wires segment. While the Lloyd segment and fans faced a challenging environment due to residual effects of a weak previous summer, winter products like water heaters and OFR heaters performed strongly. Margins felt the heat from commodity inflation (copper/aluminum), leading to a tactical decline in A&P spends to preserve profitability. Strategically, the company is doubling down on the renewable energy ecosystem through a ₹600 crore investment in Goldi Solar and continued capex in cable manufacturing. Looking ahead, management expects a 5-10% price hike in cooling products to offset BEE transitions and raw material costs, betting on a normalized summer season to drive volume recovery. The transition to new energy norms and managing the inflationary impact on price-sensitive consumer segments remain the primary watch points for the next few quarters.