Crompton Consumer: In-line Q1; pricing led revenue and margin growth

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

Crompton Consumer

In-line Q1; pricing led revenue and margin growth

Neutral

CROP.NS, CROMPTON IN

Price (06 Aug 26):Rs270.00

Price Target (Sep-27):Rs307.00

Crompton’s Q1 operational performance was broadly in line with Street

expectations. Revenue grew 12% y/y (JPMe: +13%), supported by HSD to low DD

pricing actions, while volume growth was modest owing to supply disruptions.

ECD growth of 11% y/y came in below expectations as supply-chain issues

(largely in fans) constrained sales (~Rs 2bn impact), even as Lighting (+15%) and

Butterfly (+18%) fared well. Solar Rooftops order book remains healthy, with

incremental order inflows also seen on the B2C side. Competitive intensity

remains elevated, and the company’s lean inventory model has translated into

relatively early pricing actions versus peers. EBITDA margin expanded 20bps y/y

to 10.0%, aided by pricing and cost actions, despite a still inflationary commodity

environment. Management noted normalized demand trends in July and does not

expect further price hikes, with ~80% of raw material inflation already passed

through and the balance to be managed via cost initiatives. CROMPTON has

announced its Analyst Day on August 20, where its key strategic priorities across

segments will be a key monitorable. Stay Neutral.

ECD. Q1 revenue grew 11% y/y (off a weak base; 2yr CAGR: flat). Growth

was largely pricing-led, though supply-chain disruption (normalized in June)

in fans impacted volumes. BLDC fans sustained strong momentum at +44%

y/y, supported by healthy traction for new launches. Pumps delivered healthy

growth with market share gains, aided by the ramp-up in the B2C solar pumps

business. Solar Rooftops continues to scale, backed by a Rs4.5bn order book

(total: 5bn) that is likely to be executed over the next 6 to 8 months. Domestic

Appliances posted double-digit growth led by water heaters, with strong

traction in modern trade and e-commerce and management citing General

Trade volume leadership. Segment EBIT margin expanded by 20bps y/y to

13.5% on pricing, cost actions, and operating leverage.

Lighting.…