Crompton Q1 FY27: Double-digit growth holds as pricing discipline offsets inflation

Consolidated net sales were INR 2,235 crore in Q1 FY27 (up 11.8% YoY). EBITDA was INR 224 crore (margin 10.0%), and net profit was INR 143 crore (up 15.2% YoY).

ECD revenue was INR 1,754 crore (up 10.6% YoY). ECD EBIT was INR 237 crore (up 12.1% YoY) and EBIT margin improved by 20 bps to 13.5%.

Management highlighted strong growth in BLDC fans, with the BLDC portfolio growing about 44% to 45% YoY and five new BLDC fan launches during the quarter.

Lighting revenue grew 15.4% YoY to INR 269 crore, but EBIT margin declined as some B2B orders were executed at pre-contracted rates while input costs were elevated due to commodity inflation.

Butterfly reported revenue of INR 214 crore (up 14.1% YoY). EBIT was INR 9 crore with an EBIT margin of 4.2% (up 20 bps YoY). Management stated that excluding internal sales to Crompton, Butterfly delivered about 18% growth.

Management reiterated an order book of about INR 500 crore, with about INR 450 crore expected to be executed over 6 to 8 months. Revenue is recognized on installation completion, with higher recognition expected in Q2 as installations complete.