Havells Q4 FY26: Modest topline, cables strength, and a renewables-linked profit kicker

Havells India closed Q4 FY26 with a modest revenue print, but the quarter carried two clear narratives: resilience in industrial-facing categories like cables, and pressure in cooling-linked businesses due to a delayed summer. For the quarter ended March 31, 2026, net revenue rose 2.4% year on year to INR 6,688 crores. EBITDA declined 4.4% to INR 728 crores, taking EBITDA margin down to 10.9% from 11.6% last year.

Net profit, however, rose sharply to INR 734 crores from INR 522 crores, supported by a non-operating item. Havells recognized an unrealised fair value gain of INR 283 crores in Q4 FY26 on its investment in Goldi Solar, disclosed in the investor update as “fair value gain on financial asset”. This gain lifted profit before tax to INR 933 crores, up 32.1% year on year.

Management described the quarter as “modest” because channel stocking for cooling products was impacted by a milder start to the summer season. Demand in industrial and infrastructure-linked categories remained strong, while consumer categories saw cautious trade sentiment, influenced by higher costs stemming from global disruptions. The company increased advertising investments for better visibility, while keeping overall spending disciplined.

Segment performance: cables lead, Lloyd drags

The segment mix explains much of the quarter’s shape. The standalone segment revenue table shows that Havells’ non-Lloyd businesses grew 11.0% year on year, but Lloyd Consumer declined 19.0%, pulling overall growth down to 2.4%.

Cables was the standout. Q4 FY26 cable revenue rose 14.0% year on year to INR 2,474 crores, with management pointing to strong growth in power cables. Wires, in contrast, saw muted growth due to inventory normalization and a stronger base. On the earnings call, management said overall cable and wire volumes grew 6% year on year, driven by industrial cables while domestic wires saw destocking in the first half of the quarter.

Switchgears grew 6.4% to INR 736 crores, while Lighting and Fixtures was largely flat at INR 438 crores. Electrical Consumer Durables declined 2.0% to INR 976 crores, with management attributing weakness to delayed summer onset and unseasonal showers, especially affecting fans and air coolers.

Lloyd Consumer revenue in Q4 FY26 fell to INR 1,514 crores versus INR 1,870 crores last year, impacted by a high base and delayed summer. The segment posted a loss of INR 26 crores for the quarter.

Margins: steady core, Lloyd weak, and a few quarter-end effects

At the contribution margin level, the quarter reflected strength in cables and improvements in lighting, but also reiterated the sensitivity of Lloyd to volumes.

Cables contribution margin improved to 17.8% from 14.7% in Q4 FY25. Management said margin was supported by rising commodity price trends, and also acknowledged inventory gains in copper and aluminium during the period.

Lighting contribution margin rose sharply to 37.2% in Q4 FY26 from 32.8% last year. In Q&A, management indicated that lighting margins can include year-end adjustments, and reiterated that the long-term average for lighting remains 30% to 32%.

Switchgears contribution margin fell to 36.0% from 38.5% last year. Management linked this to a lag in passing through cost increases and said it expects normalization in coming quarters.

Lloyd’s contribution margin declined to 8.4% from 14.0% in Q4 FY25. Management framed this primarily as a revenue-led issue caused by delayed season and a high base.

At the P&L level, EBITDA margin compressed to 10.9%. Advertising and sales promotion rose 23% year on year to INR 175 crores, reflecting the company’s stated intent to step up brand visibility.

FY26 snapshot: cables and “others” offset Lloyd decline

For the full year FY26, Havells reported net revenue of INR 22,466 crores, up 3.3% year on year. EBITDA was INR 2,213 crores, up 3.0%, with EBITDA margin stable at 9.9%. Net profit rose 14.5% to INR 1,705 crores.

The full-year segment table shows a similar pattern to the quarter. Cables grew 20.8% to INR 8,677 crores. Switchgears grew 7.9% to INR 2,585 crores. Electrical Consumer Durables declined 3.4% to INR 3,874 crores. Lloyd Consumer declined 22.9% to INR 3,948 crores and posted a segment loss of INR 203 crores for FY26.

The “Others” segment grew 25.2% to INR 1,727 crores. Management indicated in the call that most of the growth in “Others” was coming from solar, and it expects the renewable segment to have enough opportunity to continue growing.

Investments, capex and cash flow: building capacity while managing uncertainty

Two investment themes stood out in management commentary.

First, the renewables push. Havells invested INR 600 crores in Goldi Solar in Q1 FY26. The investment is measured at fair value, and the company recognized an unrealised fair value gain of INR 283 crores in Q4 FY26. Management positioned this as a way to leverage Goldi’s solar module manufacturing capabilities to expand Havells’ solar portfolio.

Second, Lloyd’s long-term buildout. Management said it has invested in setting up a new refrigerator plant at Ghiloth, which was commissioned during the quarter, alongside a refreshed product portfolio. The intent is to strengthen Lloyd’s presence in refrigerators and position it as a broader home appliances player.

The balance sheet reflects stepped-up investment. Property, plant and equipment and intangibles rose to INR 5,761 crores at March 2026 from INR 4,745 crores a year earlier. Management attributed higher capex predominantly to capacity addition in cables and refrigerators.

Cash flows show that the investment cycle is consuming liquidity. FY26 operating net cash flow was INR 1,557 crores. Capex was INR 1,484 crores, and investments were INR 610 crores, resulting in a net cash outflow of INR 1,002 crores. Cash and cash equivalents at year-end declined to INR 2,351 crores.

In Q&A, management also flagged ongoing volatility in costs due to West Asia developments and stated that calibrated price actions are being implemented across categories. It avoided giving numerical growth guidance for FY27, calling the environment difficult to predict month to month. For Lloyd ACs, management said pricing actions range roughly from 8% to 15% depending on the model, with further actions being a “work in progress”.

Corporate actions and governance updates

Alongside results, the board recommended a final dividend of INR 6 per equity share for FY26, in addition to an interim dividend of INR 4 per share declared earlier in the year.

The company also announced board changes and auditor re-appointment. Price Waterhouse & Co Chartered Accountants LLP was recommended for re-appointment as statutory auditors for a second five-year term (subject to shareholder approval). Varun Berry was appointed as an independent director, and certain independent directors were re-appointed. Vivek Mehra stepped down as an independent director citing inability to attend physical board meetings in NCR due to health issues and pollution exposure.

Takeaways from Q4 FY26

Havells ended FY26 with steady consolidated operating performance but visible divergence across segments. Cables remains the growth and margin engine, industrial-linked demand is holding up, and the renewables initiative is scaling, with “Others” showing strong growth.

At the same time, Lloyd’s profitability remains sensitive to seasonality and competitive cost pass-through, and cooling categories remain exposed to weather patterns. The Q4 profit print was boosted by a fair value gain on the Goldi Solar investment, which investors should separate from core operating performance.

Management’s tone stayed measured. It emphasized long-term investments in brand building, innovation, distribution and capacity, while acknowledging that steep cost inflation and geopolitical uncertainty make near-term forecasting difficult. The next few quarters are likely to test the balance between market share defense and margin protection, especially in consumer-facing categories.