Havells India, a major electronic goods manufacturer in the country, has reported weaker-than-expected performance in the first quarter of fiscal year 2026, i.e., April-June. The company's standalone net profit fell by 14 percent to ₹352 crore in this quarter, significantly lower than the profit recorded in the same quarter last year.
The company has attributed this decline primarily to weak summer conditions and the associated sluggish demand, which particularly affected sales of its cooling products such as ACs, fans, and air coolers.
Impact Visible in Sales, 6 Percent Decline
Not only profits, but the company's net sales also recorded a year-on-year decline of 6 percent. Havells' sales stood at ₹5,438 crore between April and June, compared to a higher figure in the same period last year.
According to the company, consumer demand was lower than expected in this quarter, especially for products that sell more during the summer season. Havells' decline comes at a time when the market was expecting better performance from electronic companies.
Mixed Outlook from Brokerage Houses
Two major brokerage houses, Motilal Oswal (MOSL) and Antique, have shared their views on Havells' results. Motilal Oswal has maintained a 'Neutral' rating on the share but reduced the target price from ₹1,710 to ₹1,680.
MOSL says that the company's sales, profit, and margin were all below their estimates. This brokerage has cut its FY26 and FY27 EPS estimates by 8 percent and 7 percent respectively.
Antique Gives 'Buy' Rating, But Reduces Target
On the other hand, brokerage Antique has maintained its 'Buy' rating on Havells India, but they have also reduced the target price. While they had previously set a target of ₹1,859, it has now been reduced to ₹1,797.
Antique believes that the company's Lloyd and ECD (Electrical Consumer Durables) segments have been weak, which has affected the results. The brokerage has reduced FY26 and FY27 earnings estimates by 6 percent and 10 percent respectively.
Current Movement of Havells' Share
Havells India's share is currently trading with a slight gain of 0.67 percent at ₹1,542.30 in the market. It remains in the green.
If we talk about the share's 52-week range, its highest level has been ₹2,104.95 and the lowest level has been ₹1,360.05. The company's current market cap is around ₹98,101.36 crore.
No Relief in Other Segments Either
Not only cooling products, but the growth of the company's other major segments such as switchgear, cables, and industrial equipment has also been flat or slow.
The company's management has stated that demand has been sluggish in rural markets and the slowdown in the real estate sector has also had an impact.
Havells' Strategy and Management Focus
The company has indicated that in the coming times, it will focus on product innovation and strengthening its grip in rural markets. Along with this, work is also being done to improve logistics and inventory management.
The company plans to launch some new models before the upcoming festive season, which will help to revive consumer demand.
Investors Eyeing Brokerage Reports
Havells' shareholders are now eyeing the ratings and targets of brokerage houses. The reports of MOSL and Antique clearly indicate that the company's performance needs stability at the moment and the return of demand in the next two quarters will be crucial.
Investors are also watching how the company is preparing for the festive season and how the Lloyd brand is being strengthened.
Market Remains Active for Now
Despite the company's weak results, a slight increase is being seen in the share. Experts believe that the market had already factored in the possibility of weak performance into its price, which is why the share did not see a sharp decline.
However, if the company's performance does not improve in the upcoming quarter, its effect may be visible on the share. In such a situation, investors' eyes are on every update and the company's future strategy.
