Havells Q2FY27 Results: Profit up 9.7%, Revenue 34.6%

Overview: Havells posts steady profit growth on sharp revenue jump

Havells India reported a mixed set of second-quarter FY27 numbers, with profit rising at a slower pace than revenue as margins moderated. The consumer electrical goods maker said consolidated net profit for the quarter ended September 30, 2026 increased 9.72% year-on-year to ₹349.22 crore. Revenue from operations rose 34.57% year-on-year to ₹6,432 crore, supported by strong growth in cables, switchgears, and consumer durables. The quarter also reflected rapid expansion in the renewables segment, albeit on a smaller base. The board approved the results at its meeting on October 22, 2026, and the financials were described as limited reviewed and unaudited.

Key headline numbers for the September 2026 quarter

In the September quarter, Havells reported consolidated total income of ₹6,464.60 crore, up 32.86% year-on-year. Total expenses climbed broadly in line with revenue, rising 34.47% year-on-year to ₹5,991.98 crore. The higher expense base meant profit growth lagged sales growth despite healthy operating performance. Basic EPS for the quarter stood at ₹5.57 versus ₹5.09 a year earlier, while diluted EPS was ₹5.57 versus ₹5.08. The company also disclosed that its consolidated total income was 1.6% lower than the ₹6,572.35 crore reported in the June 2026 quarter.

How the results compared with street expectations

A CNBC-TV18 poll cited in the report had expected quarterly revenue of about ₹5,937 crore and EBITDA of about ₹536 crore. Havells’ reported EBITDA for the quarter came in at ₹576.3 crore, up 30.6% year-on-year and marginally higher than that estimate. The same set of market estimates referenced revenue of ₹6,416 crore (up 34.6% year-on-year), also above the poll expectation. Net profit in that comparison set was stated at ₹353 crore, broadly in line with an estimate of ₹352 crore and up 11.2% year-on-year. The article data contains both consolidated profit of ₹349.22 crore and a net profit figure of ₹353 crore referenced alongside standalone metrics, indicating the market comparison was likely based on a different reporting base than the consolidated statutory number highlighted in the exchange filing.

Segment performance: cables leads, renewables scales up

Havells’ cables business was the standout growth driver in Q2FY27. The cables division posted a 47.9% year-on-year increase in quarterly revenue to ₹2,999 crore. Switchgears revenue grew 31.3% year-on-year to ₹782 crore, pointing to broad-based demand across core electrical categories. The Electrical Consumer Durables (ECD) segment reported revenue of ₹1,072.11 crore compared with ₹968.62 crore a year earlier, a 10.7% year-on-year increase. Lighting and Fixtures revenue grew 7% year-on-year, though the article did not provide an absolute number for the segment.

Renewables remained the fastest-growing segment, with revenue rising to ₹329.16 crore from ₹132.83 crore a year earlier. The segment result in renewables rose to ₹27.25 crore from ₹5.01 crore, showing operating leverage as the business scaled. Separately, the article also referenced Lloyd Consumer (acquired in 2017) reporting revenue of ₹615 crore, up 28.4%, driven by higher volumes and price increases.

Margins: EBITDA margin narrows amid cost pressures

Despite a strong topline, profitability metrics showed some pressure. EBITDA margin narrowed by around 30 basis points to 9% from 9.26%, as cited in the report. Another note in the article set flagged that gross margin dropped 431 basis points to 30.6% due to raw material costs, and mentioned rising competition. These datapoints explain why profit growth did not match the pace of revenue growth even as operating profit expanded year-on-year.

Cash flow and balance sheet snapshot

The company reported cash and cash equivalents of ₹1,190 crore at the end of Q2 FY27. For the first half of the fiscal year, it recorded a net operating cash outflow of ₹160 crore, attributed to a ₹1,091 crore shift in working capital. This disclosure is important because it highlights that rapid growth can absorb cash through inventory, receivables, or other working capital movements, even when reported profits are rising.

Half-year performance: income up, profit softer

For the half-year ended September 30, 2026, Havells reported consolidated total income of ₹13,036.95 crore, up 25.5% year-on-year from ₹10,390.12 crore. However, net profit for the half-year declined 4.0% year-on-year to ₹638.93 crore, versus ₹665.81 crore in the corresponding period last year. The article also cited another first-half snapshot: revenue rose 26.7% to ₹12,927 crore, while net profit declined 2.8% to ₹651 crore. Taken together, the half-year disclosures point to strong revenue momentum but a more cautious profitability profile over a longer period than a single quarter.

Capex plan: focus on cables capacity and R&D

Havells said capex for the full year is anticipated to be around ₹1,400 crore. The planned spending is primarily towards capacity addition in cables and investment in a new R&D center. With cables delivering the highest growth in Q2FY27, the capex emphasis aligns with the segment momentum described in the quarter.

Stock market reaction on the day

On October 22, 2026, Havells shares closed at ₹1,075.60 on the BSE, up 0.42% versus the previous close, according to the article. The modest move suggests the results were largely within the range of expectations, with the key debate centering on margin trends rather than topline delivery.

Key numbers table: Q2FY27 vs Q2FY26 (as reported)

Segment table: growth areas highlighted in the quarter

Why these results matter for investors tracking Havells

The September quarter reinforces that Havells is currently in a strong demand cycle, with revenue growth driven by core electrical categories and a sharp acceleration in cables. At the same time, the margin commentary in the report points to cost pressures and competitive intensity, which can cap profit growth even when sales rise quickly. The working-capital driven operating cash outflow in the first half adds another layer for investors to track, especially during periods of rapid expansion. Finally, the capex plan of ₹1,400 crore signals the company is prioritising capacity and R&D, potentially shaping product competitiveness and supply capability over the next few quarters.

Conclusion

Havells’ Q2FY27 performance combined strong revenue growth with modest profit expansion, as operating and gross margin indicators softened. The company’s disclosures also highlighted rapid growth in cables and renewables, a sizeable capex plan for capacity and R&D, and a first-half working capital-led cash outflow. The next key checkpoints will be execution on the planned capex and whether margin pressures highlighted in the quarter ease as costs and competitive dynamics evolve.