Havells India Ltd: Underwhelming Q1; Still cutting EPS estimates

Research evidence excerpt

Havells India Ltd: Underwhelming Q1; Still cutting EPS estimates

J P M O R G A N Asia Pacific Equity Research

20 July 2026

Havells India Ltd Neutral

HVEL.NS, HAVL IN

Underwhelming Q1; Still cutting EPS estimates Price (17 Jul 26):Rs1,187.30

▼Price Target (Sep-27):Rs1,200.00

Prior (Mar-27):Rs1,300.00

HAVL’s Q1 operational performance was underwhelming – even as overall revenue

growth (+19% y/y) was in line, much of the growth was price led with volume growth Consumer, Retail, Media

and market share performance being subdued. Inflationary COGS and a steep 2x y/y Latika Chopra, CFA AC

step-up in A&P spends weighed heavily on margins, with EBITDA margin (91-22) 6157-3584

contracting 230bps y/y to a multi-year low of 7.2%, driving EBITDA/PAT decline of latika.chopra@jpmorgan.com

-9%/-17%. Revenue growth was led by Cables & Wires (+27% y/y but with flat vol). Himanshu Singh

Switchgears revenue was impacted by weaker exports and Lloyd continued to (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

underperform amid macro volatility and distribution changes (focus on sell-out vs

Saransh S Gokhale

sell-in; lower channel inventory). Front-loaded brand spending pressured margins

(91-22) 6157 3578

across key segments, partly offset by 5–20% price hikes (avg 7–8%). Management saransh.gokhale@jpmchase.com

expects the demand environment to improve, with margin recovery over coming J.P. Morgan India Private Limited, J.P. Morgan

quarters aided by normalization of A&P (guidance maintained at 2.7–2.8% of sales). Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

HAVL’s overall margins have moderated meaningfully in recent years despite cost-

optimization efforts, reflecting a tougher competitive environment and continued

drag from Lloyd.