Havells India Q3 Results: Revenue Surges 14% But Profit Misses Expectations

A Mixed Quarter for Havells

Havells India reported a mixed set of financial results for the third quarter of fiscal year 2026, ending December 31, 2025. While the company's revenue grew robustly and surpassed market forecasts, its net profit failed to meet expectations. This performance highlights a recovery in consumer demand but also underscores continued pressure on margins. Alongside the results, the company's board announced an interim dividend for its shareholders and a new employee stock purchase scheme.

Financial Performance in Detail

For the quarter, Havells India posted a standalone revenue from operations of ₹5,573 crore. This represents a significant 14.2% increase from the ₹4,882 crore recorded in the same period of the previous fiscal year. The top-line figure also came in marginally ahead of the CNBC-TV18 poll estimate, which had projected revenue at ₹5,354 crore. However, the company's profitability did not keep pace with its revenue growth. Standalone net profit for Q3 FY26 stood at ₹301 crore, marking a modest 6.4% year-on-year increase from ₹283 crore. This figure was notably lower than the analyst consensus estimate of ₹346 crore, indicating pressure on the bottom line.

Operational Efficiency and Margin Analysis

The company's operating performance remained largely stable and in line with expectations. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by a healthy 21.6% to ₹524 crore, up from ₹432 crore in the corresponding quarter last year. This was slightly ahead of the Street's forecast of ₹518 crore. The EBITDA margin improved to 9.4% from 8.8% a year ago, suggesting better cost controls and operating leverage. Despite this year-on-year improvement, the margin was slightly below the anticipated 9.7%, highlighting that cost pressures continue to weigh on profitability.

Segment-wise Revenue Breakdown

An analysis of Havells' standalone segment-wise revenue reveals the key drivers of its top-line growth. The Cables division continued to be the largest contributor, generating ₹2,241.12 crore in revenue for the quarter. The Electrical Consumer Durables segment followed with ₹1,151.24 crore. The Lloyd Consumer business, which includes air conditioners and other large appliances, reported revenues of ₹693.70 crore. The Switchgears segment brought in ₹624.35 crore, while the Lighting and Fixtures division contributed ₹423.28 crore. This diversified performance underscores the company's broad presence across the electrical goods market.

Key Financial Highlights: Q3 FY26 vs Q3 FY25

Dividend and Employee Stock Scheme Announced

In a positive development for shareholders, the Board of Directors declared an interim dividend of ₹4 per equity share on a face value of ₹1 each. This translates to a 400% payout on the company’s equity capital. The record date for determining shareholder eligibility for the dividend has been set for January 23, 2026, with the payment scheduled to be completed on or before February 17, 2026. Furthermore, the board approved the launch of the “Havells Employees Stock Purchase Scheme 2026.” This initiative, subject to shareholder approval, is designed to enhance employee engagement and long-term retention. The proposal will be presented at the company's forthcoming Annual General Meeting.

Market Context and Outlook

The Q3 results reflect a broader industry trend of recovering demand for consumer electricals and durables. The strong revenue growth suggests that consumer spending is picking up, which is a positive sign for the sector. However, the miss on profitability indicates that companies are still grappling with input cost pressures and a competitive pricing environment. While Havells has managed to improve its operating margin year-on-year through better leverage and cost controls, the slight miss against expectations suggests that a full margin recovery may take more time. The company's ability to manage its product mix and operational costs will be crucial in the coming quarters.

Conclusion: Strong Growth Tempered by Profit Pressure

Havells India's third-quarter performance presents a dual narrative. The company demonstrated strong execution on the sales front, exceeding revenue expectations with double-digit growth that points to healthy underlying demand. However, the lower-than-expected profit highlights the persistent challenges in converting top-line growth into proportional bottom-line gains. The shareholder-friendly moves, such as the interim dividend and the new employee stock scheme, are positive signals of management's confidence. Investors will now be watching closely to see if the company can expand its margins in the upcoming quarters while sustaining its growth momentum.