1. Opening Hook
When your ceiling fan brand becomesthe world’s No.1, the air feels lighter—even if margins don’t. Crompton is flexing its blades globally while pivoting hard into solar rooftops and pumps. From cooling homes to powering farms, the company seems to have developed a solar-sized appetite for domination. But as always, what shines bright may also burn margins.Keep reading—because the real spark is in how Crompton plans to make its solar dreamsprofitable. ☀️
2. At a Glance
- Revenue up 3% YoY– “Steady,” says management; analysts heard “meh.”
- Solar orderbook ₹500 Cr– Clearly, they’ve moved from ceiling fans to solar ceilings.
- Butterfly revenue up 13.6%– Wings flapping strong in kitchens.
- Lighting EBIT up 50% YoY– Somebody switched on the high-margin bulb.
- Margins dipped– Commodity gremlins and “transformation” spend blamed again.
- Exceptional cost ₹20 Cr– Transformation hurts pockets before it helps profits.
- Crompton now World’s #1 Ceiling Fan Maker– Crown earned; profits still looking for the throne. 👑
3. Management’s Key Commentary
“Euromonitor certified us as the world’s #1 ceiling fan company.”(Translation:Finally, our fans are literally blowing away competition. 🌬️)
“Solar rooftop business secured ₹500 Cr in orders within a month.”(Translation:We found a new way to make money when people aren’t buying fans.)
“Solar pumps growing 100% YoY; market share now 6–8%.”(Translation:Farmers now trust Crompton more than monsoons.*)
“We are investing in transformation projects—GTM revamp, U&A study with 17,000 consumers.”(Translation:We spent crores asking people why they don’t buy our premium models.*)
“Margins dipped due to commodity prices and seasonality in TPW and LDA.”(Translation:Bad weather and copper prices—our two eternal enemies.*)
“Lighting EBIT margins at 15.5%, up 480 bps YoY.”(Translation:Finally, a bright spot in an otherwise dim quarter. 💡*)
“Rs. 20 Cr restructuring cost at Baroda—now also manufacturing solar products.”(Translation:We turned a lighting factory into an all-you-can-produce buffet.*)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Management Spin |
|---|---|---|---|
| Revenue | +3% | Flat to mild growth | “Steady under tough weather” |
| ECD Volume | +3% | Up | “Gaining share despite clouds” |
| Butterfly Revenue | +13.6% | Strong | “Channel execution nirvana” |
| Butterfly EBITDA | +21% | Jump | “Kitchen magic continues” |
| Lighting EBIT Margin | 15.5% | +480 bps | “Our LED finally pays off” |
| Solar Rooftop Orders | ₹500 Cr | New biz | “From fans to farms” |
| Solar Pump Order Book | ₹255 Cr | 100%+ YoY | “Green gold rush” |
| Exceptional Item | ₹20 Cr | NA | “Transformation = expensive therapy” |
Analysis:Solar’s the new darling, kitchens are sizzling, lighting shines bright. Fans and TPW caught a cold. Transformation is the expensive hobby nobody wants to question—yet.
5. Analyst Questions
Q:Why did ECD margins crash so hard?A:Bad mix, bad weather, and “investments for the future.” (Translation:Stuff happens.*)
Q:Will fans’ price hike offset margin pain?A:1.4% hike taken; others to follow. (Translation:Small step for prices, giant leap for press releases.*)
Q:Solar pumps depend on subsidies—what happens if they vanish?A:“We’ll still shine.” (Translation:Please don’t cut subsidies.*)
Q:Why not enter wires?A:“We know our strengths.” (Translation:Maybe next quarter, when solar excitement fades.*)
6. Guidance & Outlook
Management stayed shy on numbers but loud on optimism:
- Expect “margin
