This article first appeared on GuruFocus .
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Revenue Growth:14% increase in Q3.
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EBITDA Growth:21% increase worldwide in Q3.
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Exceptional Item:45 crore additional provisioning due to new labor codes.
Release Date: January 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Havells India Ltd ( BOM:517354 ) reported a healthy overall performance in Q3 FY26, with a 14% revenue growth and a 21% increase in EBITDA.
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The cables business experienced accelerated growth driven by volume expansion and commodity price inflation.
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There was a healthy uptake in demand for heating products, supported by a good winter season.
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The company is optimistic about a gradual recovery in demand and is taking calibrated price hikes to manage cost pressures.
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Havells India Ltd ( BOM:517354 ) is investing in capacity expansion, particularly in cables and wires, and is also focusing on enhancing operational efficiency.
Negative Points
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The cooling products segment faced a challenging environment, although channel inventory is now normalizing.
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There are industry headwinds such as cost increases due to commodity inflation, changes in labor codes, and e-waste regulations.
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Margins are under pressure due to rising commodity prices, and the company is balancing cost discipline with investment needs.
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The wires and cables segment saw a significant stock buildup at the channel level, which could impact volumes if price movements occur.
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The solar segment, while growing, is currently affecting overall margins due to a mix of utility and C&I installation orders.
Q & A Highlights
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Q: As Havells continues to expand across categories, how does the company plan to balance growth with profitability, especially given the margin pressures observed this quarter? A: Anil Gupta, Executive Chairman and CEO, explained that Havells maintains a strategy of balancing growth and profitability through brand building, distribution reach, and product innovation. The company leverages its comprehensive product portfolio to gain operating leverage and ensure growth and profitability expansion over time.
Q: With revenue growth and potential margin pressures, how is Havells balancing cost discipline with investment needs for innovation and distribution expansion? A: Anil Gupta stated that Havells addresses short-term cost pressures by absorbing or passing them on to the market, while long-term pressures are managed through efficiency improvements. The company remains financially prudent, managing working capital and CapEx to support growth while maintaining a balanced approach.
Q: Can you provide details on the volume growth for wires and cables, and how rising copper prices might impact inventory and working capital? A: Anil Gupta noted that volume growth for wires and cables was over 20%, driven by price increases. There is a stock buildup at the channel level due to continuous price increases. While sudden price movements could impact volumes temporarily, Havells does not plan to shift from a channel-heavy to a B2B-heavy strategy.
Q: What is the outlook for the solar segment, and how does it impact margins? A: Anil Gupta highlighted that solar is growing faster than other categories, presenting a large opportunity. While it currently affects overall margins due to a mix of utility and C&I orders, Havells is optimistic about revenue growth and margin expansion in the solar segment.
Q: How is Havells addressing the competitive challenges and modest demand outlook in the ECD segment? A: Anil Gupta mentioned that the ECD segment has seen growth driven by winter products, with volume-driven growth across categories except for fans. The company focuses on margin improvement through cost rationalization, calibrated price hikes, and productivity improvements to balance growth and profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
