Havells Q3 Results: Cables Surge 33% as Durables Lag

Introduction

Havells India Limited announced its financial results for the third quarter of fiscal year 2026, reporting a consolidated revenue growth of 14.3% year-on-year. The company's net profit saw a 7.9% increase, reaching ₹300.05 crore. The performance highlights a significant divergence within its business portfolio, with the industrial-facing cables and wires segment delivering robust growth, while the consumer durables division, particularly the Lloyd brand, encountered headwinds.

The Engine of Growth: Cables and Wires

The standout performer for Havells in the December quarter was its cables and wires division. This segment, which is the largest contributor to the company's revenue, recorded a staggering 32.8% year-on-year growth, with revenues climbing to ₹2,241 crore. This strong performance was attributed to a combination of factors. Healthy demand from increased infrastructure spending by both government and private sectors, along with a buoyant real estate market, drove higher sales volumes. Furthermore, the company demonstrated strong pricing power by successfully passing on the increased costs of raw materials, such as copper, to the market. To meet this rising demand, Havells is continuing its capacity expansion in the cables segment, signaling confidence in the sector's continued growth trajectory.

A Mixed Bag in Consumer Goods

In contrast to the booming cables business, Havells' consumer-facing segments presented a mixed picture. The Lloyd Consumer division, acquired in 2017, faced a challenging quarter with revenues declining by 6.5% to ₹694 crore. Management attributed this slowdown to modest overall consumption trends and weaker demand for cooling products like air conditioners. The lighting and fixtures segment also experienced a slight downturn, with revenue dipping by 4% to ₹423 crore. However, the Electrical Consumer Durables (ECD) segment showed resilience, posting a modest growth of 4.3% to reach ₹1,151 crore, supported by some uptick in demand during the festive season.

Financial Highlights at a Glance

To provide a clear overview of the company's performance, the key financial metrics for the quarter are summarized below.

Note: Q3 FY25 figures for segments are calculated based on reported growth percentages.

Management Outlook and Strategy

Anil Rai Gupta, Chairman and Managing Director of Havells India, acknowledged the near-term challenges posed by high input costs. He stated that while these costs might temporarily hurt demand, he expects the situation to normalize if raw material prices remain stable. The company's strategy remains focused on long-term growth, with continued capital expenditure planned for the cables and wires business to prevent capacity constraints. The management also declared an interim dividend of ₹4 per equity share, reflecting a 400% payout on the face value.

The Emerging Solar Opportunity

Beyond its core segments, Havells is making strategic inroads into the renewable energy space. The 'Other Segment' reported a significant revenue jump of 22%, largely driven by its solar business. The company's investment in Goldie Solar earlier in the year is beginning to yield results, providing a strong foothold in the supply chain. While currently a small part of the overall mix, Havells' management envisions the solar business becoming a distinct and sizable business unit within the next three to five years, potentially contributing 5% to 10% of total sales.

Market Reaction and Peer Context

Despite posting what was considered an in-line set of results, Havells India's stock price slid by 4% following the announcement. This reaction may reflect investor concerns about the slowdown in the high-margin consumer durables segment and the impact of rising raw material costs. The strong performance of the cables division is not unique to Havells; competitor Polycab India also recently reported robust growth in its wires and cables segment, indicating a powerful sector-wide trend fueled by national infrastructure development.

Conclusion

Havells India's third-quarter performance paints a picture of a company successfully leveraging the tailwinds in the infrastructure and industrial sectors while navigating a more challenging consumer demand environment. The exceptional growth in the cables and wires business has effectively offset the weakness in the Lloyd and lighting divisions. The company's continued investment in capacity expansion and its strategic push into the high-growth solar sector position it to capitalize on future opportunities, even as it manages near-term market volatility.