Havells Q1 Earnings Show Strong Revenue Growth Masked by Sharp Profit Decline
The electrical goods leader posted a 19.5% jump in quarterly revenue, but net profit fell sharply as margins compressed.
Havells India's Q1 FY27 results present a mixed picture. While revenue grew nearly 20% year-on-year, net profit fell by 16.6%, highlighting significant pressure on profitability.
Havells India's first-quarter earnings for FY27 reveal a tale of two diverging trends. The company delivered robust revenue growth, but this was overshadowed by a steep decline in profitability, pointing to a significant squeeze on margins.
The quarter ended June 2026 saw revenue rise to ₹6,518 crore, a healthy 19.5% increase from the same period last year. However, net profit fell to ₹290 crore, down 16.6% year-on-year. This divergence pulled the net profit margin down to 4.4%, a contraction of 200 basis points from Q1 FY26. Sequentially, the pressure was even more pronounced, with profit dropping 60% from the previous quarter.
A look at the last five quarters shows the volatility in earnings, with the latest profit figure being the second-lowest in the period.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 6,518.19YoY +19% | 6,705.20 | 5,455.35 |
| Profit (₹ Cr) | 289.71YoY -17% | 723.39 | 347.53 |
| Net Profit Margin (%) | 4.4YoY -31% | 10.8 | 6.4 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 6.9%, suggesting the Q1 figure is a notable dip from the recent average.
- The company maintains a strong balance sheet with zero debt and a high interest coverage ratio of 28.98.
- Despite the earnings pressure, Havells' return on equity remains healthy at 19.05%.
The stock has declined 12.2% over the past year, trading at a slight discount to the industry average P/E. The immediate challenge for Havells is to demonstrate it can translate its solid top-line momentum back into stronger bottom-line results in the coming quarters.
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