Havells (HAVELLS) Q2 FY27 Revenue Jumps 35% But Profit Margin Shrinks
The electrical goods giant posted robust top-line growth driven by cables and renewables, but profitability was pressured by softer segmental margins.
Havells India's Q2 FY27 revenue surged 34.6% year-on-year to ₹6,432 crore. Profit grew 9.7%, but the net profit margin contracted by 130 basis points, highlighting a quarter of strong sales but pressured earnings.
For Havells India, a consumer electricals leader, the September quarter was a story of two speeds. Revenue surged ahead on the back of strong industrial demand and a booming renewables segment, but profitability struggled to keep pace, squeezed by commodity swings and competitive intensity.
The numbers show the split clearly. Revenue for Q2 FY27 stood at ₹6,432 crore, a robust 34.6% jump from a year earlier. Profit grew a more modest 9.7% to ₹349 crore. Sequentially, revenue dipped 1.3% from the June quarter, but profit rose 20.5% as the company recovered from a low base.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 6,431.99YoY +35% | 6,518.19 | 4,779.33 |
| Profit (₹ Cr) | 349.22YoY +9.7% | 289.71 | 318.28 |
| Net Profit Margin (%) | 5.4YoY -19% | 4.4 | 6.7 |
Why the profit lagged behind sales
The 130-basis-point year-on-year drop in net profit margin points to pressure points within the growth. According to CNBC-TV18, the company noted that contribution margins were soft, mainly in the cables business where a fall in aluminium prices weighed. The Lloyd consumer durables segment also remained a drag, posting a loss of ₹105.5 crore, as reported by ETManufacturing.
Growth was led by the industrial side. The cables segment, Havells' largest, saw revenue soar 47.9% year-on-year to nearly ₹3,000 crore, driven by commodity-linked price increases and a shift to higher-sized cables. The renewables business, now a separate segment, more than doubled its revenue to ₹329 crore.
The costs that will not fall soon
Management commentary, cited by Business Standard, struck a confident note on demand but acknowledged macro uncertainties. The company expects 5-7% price increases in the third quarter if raw material pressure continues. It is also committing significant capital, with a full-year capex guidance of ₹1,400 crore primarily for cable capacity and a new R&D center.
This investment-heavy phase coincides with a broader industry trend of rising input costs. Reports suggest consumer durables face a third price hike this year as costs for copper, aluminium, and logistics surge. For Havells, the challenge is to pass these on without hurting volume growth, especially in the competitive Lloyd business.
Key Points
- Revenue growth of 34.6% YoY was driven by a 48% surge in the cables business and a 148% jump in renewables.
- Net profit margin contracted 130 bps YoY to 5.4%, pressured by softer contribution margins in cables and persistent losses in the Lloyd segment.
- Sequential profit improved 20.5% as the company recovered from a low-margin Q1, though revenue dipped slightly.
- Management guided for ₹1,400 crore in annual capex, focused on cable capacity, and expects further price hikes if raw material costs persist.
Hexa Perspective
This quarter underscores Havells' transition. It is successfully riding infrastructure and green energy tailwinds, evident in the cables and renewables performance. However, the margin compression reveals the cost of that growth—commodity volatility and the long-term investment needed to turn around Lloyd. The next few quarters will test whether calibrated price hikes can restore margins without stalling volume momentum. With a debt-free balance sheet and strong return ratios, the company has the financial strength to see this investment phase through, but investor patience for the Lloyd turnaround will be key.
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