20 Jul , 2026 By : Debdeep Gupta
Shares of Havells India rose 0.68% to Rs 1,195.40 on Monday after Anand Rathi maintained its Buy rating on the stock, while lowering its target price to Rs 1,379 from Rs 1,447 earlier. The revised target implies an upside of around 15% from the current market price.
The brokerage said Havells delivered a healthy Q1 FY27 performance, with consolidated revenue rising 19.5% year-on-year to Rs 65 billion, led by a 27% YoY growth in the Cables & Wires business.
Lloyd revenue increased 15% YoY, while Electrical Consumer Durables (ECD) grew 12%. The Renewables business also reported strong revenue growth, although lower-margin solar panels offset higher-margin inverter sales. Switchgear sales declined 4% YoY due to geopolitical disruptions and volatility in input prices.
However, profitability remained under pressure. EBITDA margin contracted 230 basis points YoY to 7.2%, while PAT declined 17% YoY to Rs 2.9 billion. Anand Rathi said advertising and promotion spending more than doubled year-on-year, weighing on EBITDA.
"Although near-term profitability was impacted by front-loaded advertising investments and commodity volatility, the management expects advertising spend to normalise over the rest quarters of FY27, and margin to recover as recent price hikes flow through," the brokerage said.
Havells has implemented price increases of 5-20?ross categories. The company has also guided for a capex of Rs 14 billion for FY27.
Anand Rathi expects the earnings recovery to be gradual and said, "Going forward, the pace of margin recovery in Lloyd, stability in RM prices, execution of planned capacity addition and scaling up of Renewables business will remain the key monitorable."
The brokerage expects revenue and PAT to clock a CAGR of 13% and 8%, respectively, over FY26-FY28E. It has tweaked its EBITDA and PAT estimates for FY27E and FY28E, citing a slower earnings recovery.
"Keeping our positive long-term view intact, we maintain BUY rating on the stock with a revised TP of Rs1,379 (from Rs1,447 earlier), valuing it at 45x FY28e EPS," Anand Rathi said.
The brokerage added that Havells' newly created Renewables segment offers a meaningful long-term growth avenue through solar, battery energy storage systems (BESS), EV charging and other energy-transition opportunities.
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