Havells India Ltd Q2FY26 FY25 – “Switch On, Mark Up: ₹4,779 Cr Sales, ₹319 Cr Profit, and a P/E That Thinks It’s an iPhone”
1. At a Glance
If luxury had an electrical plug, it would probably say Havells India Limited. This ₹93,500 crore Fast Moving Electrical Godzilla (oops, Goods Company) just reported another quarter of steady growth — ₹4,779 crore in sales (+5.3% YoY) and ₹319 crore in PAT (+18.9%). While other consumer durables sweat over discounts, Havells quietly flexes a P/E of 64x — because apparently, it’s not selling cables, it’s selling class.
The current price stands at ₹1,492, ROCE at a glowing 25.3%, and ROE at a cool 18.8%. Debt? A laughable ₹286 crore — which, in corporate India, is like carrying ₹20 in your wallet for good luck. But the real power surge comes from Lloyd Consumer — now 24% of sales — and the ever-profitable Cables business (32%). The company’s ₹600 crore Goldi Solar investment and new EV charger vertical show that Havells is not just turning on lights, it’s switching on the future.
2. Introduction – The “Electric” Empire
There are two kinds of Indian middle-class homes — those that buy Havells fans, and those that secretly wish they could. Havells India, born in 1958 and now a poster child for the “Make in India” movement, has gone from making humble circuit breakers to breaking industry stereotypes.
While other brands fight for shelf space, Havells built Utsav stores in villages. While Dixon builds others’ brands, Havells builds its own. And while peers pray for margins, Havells prints them like Diwali pamphlets.
But the Q2FY26 story is not just about growth — it’s about ambition. Management confirmed plans for an ₹800-900 crore annual capex blitz for FY26-27, expanding its cables, solar, and consumer durables footprint. The Lloyd arm — once mocked as “the weak link” — now contributes a quarter of total sales, proving that even underdogs can plug into greatness.
Question for you: when was the last time you turned on a light and thanked Havells? Yeah, same here.
3. Business Model – WTF Do They Even Do?
Think of Havells as the Swiss Army knife of Indian electricity. It makes everything that connects, carries, cools, or glows.
Here’s the segment breakdown (H1 FY25):
Cables: 32% — the breadwinner that never gets enough credit.
Lloyd Consumer: 24% — the glamour child (ACs, TVs, refrigerators).
Electrical Consumer Durables: 18% — fans, appliances, and heaters.
Switchgears: 11% — where it all began.
Lighting & Fixtures: 8% — keeps homes pretty.
Others: 7% — motors, solar, water purifiers, and the new EV charger baby.
The company’s 90% in-house manufacturing means they don’t just assemble, they own the circuit. From Sri City (Lloyd’s mega AC plant) to Alwar, Haridwar, Neemrana, and Tumkur — Havells is running 16 factories like temples of voltage.
Their distribution: 18,000 dealers, 2.47 lakh retailers, and over 1,500 exclusive stores (900 Brand Shops + 600 Utsav). Basically, you can find Havells products anywhere in India except in your electrician’s excuses.
Commentary: Margins stabilized at ~9%, thanks to cooling raw material costs and product mix. The real surprise — cable margins held firm despite copper volatility, and Lloyd improved profitability for the 4th straight quarter. Havells isn’t sprinting — it’s marathon-running with style.
5. Valuation Discussion – The “Fair Value” Shock Therapy
(a) P/E Method: Industry average ≈ 25x. Havells trades at 64x — because branding premium = desi luxury. Educational fair range = 45x–60x × ₹20.36 = ₹915 – ₹1,220.
(b) EV/EBITDA Method: EV = ₹92,380 Cr; FY25 EBITDA = ₹2,175 Cr → EV/EBITDA = 42.5x. Peer range 25–35x →
