Havells India's Q1 net profit falls 33 pc sequentially, revenue down 17 pc

Mumbai, July 21 (IANS) Havells India on Monday reported a net profit of Rs 347.53 crore in the first quarter (Q1) of FY26, down 32.78 per cent on quarter-on-quarter (QoQ) basis from Rs 517 crore in Q4 FY25.

Revenue from operations also dropped by 16.63 per cent, falling to Rs 5,455.35 crore from Rs 6,543.56 crore in the previous quarter, according to its stock exchange filing.

Total income for the quarter also followed suit and stood at Rs 5,524.53 crore -- marking a 16.45 per cent decline from Rs 6,612.28 crore in Q4 FY25.

Year-on-year (YoY), the company also saw a drop in its profit. Consolidated profit after tax (PAT) fell 14.75 per cent from Rs 407.51 crore in the April-June quarter of the previous fiscal.

Revenue from operations also declined 6 per cent YoY from Rs 5,806.21 crore in Q1 FY25.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to Rs 570 crore, slightly lower than Rs 576 crore in the same quarter previous year.

The EBITDA margin dropped to 5.6 per cent, compared to 9.9 per cent a year ago, as per its exchange filing.

Havells attributed the weak performance to an unusually mild summer this year, which hurt demand for cooling products like fans and air coolers.

It noted that while industrial and infrastructure demand remained strong, consumer sentiment was weak.

"Tepid summer this year, in contrast to the strong season last year, led to significant decline in cooling products," the company said in its exchange filing.

Among its segments, wires and cables performed strongly, with revenue rising 27.1 per cent to Rs 1,933 crore compared to Rs 1,521 crore a year ago.

However, the lighting and fixtures business slipped 3.1 per cent to Rs 374 crore.

The company also highlighted that the performance of its Lloyd brand was impacted due to unseasonal rains and a shorter summer, leading to higher inventory levels and flattish growth in the first half of the calendar year.

The results were announced after market hours. Ahead of the announcement, Havells' stock closed 0.95 per cent higher at Rs 1,533 on the National Stock Exchange (NSE).

--IANS

pk/na