1) At a Glance
Crompton today feels like that overqualified topper who took a long chai break and is now back with a timetable, a Pomodoro app, and a fresh haircut. Market cap sits around ₹15,800 Cr, the stock is hovering near ₹245, and the last 12 months have been… let’s say humbling. But peel the layers and you’ll see a company that has cleaned up debt, tightened costs, and decided to spend real money on brand, innovation, and premiumisation.
Q3 FY26 delivered ₹1,898 Cr revenue (+7.3% YoY) and ₹195 Cr EBITDA (10.3% margin) despite commodity heat and a tepid demand environment. PAT landed at ₹101 Cr, dragged by a one-time labour code hit—remove that, and the underlying engine looks steadier.
Crompton’s playbook—Crompton 2.0—is loud and clear: premium fans (BLDC), smarter pumps, lighting with margins, and a serious push into solar rooftops. Oh, and it’s debt-free now. The question isn’t whether Crompton can execute—it’s whether the market will reward patience after a rough stock chart. Curious? You should be.
2) Introduction
This is a 75+ year brand that decided nostalgia won’t pay the bills. Since June 2023, Crompton has been rewiring itself—3.6% of FY25 revenue on A&P, ₹100+ Cr on innovation, 170 launches in a year. That’s not tinkering; that’s a reset.
The company straddles two worlds: mass-market scale (fans, pumps, lighting) and aspirational upgrades (BLDC, premium chimneys, Idea First appliances). Add Butterfly to dominate southern kitchens and a fresh solar rooftop thrust to ride policy tailwinds—and you have a portfolio that’s wider than a wedding buffet.
But the
past few years weren’t kind: profit growth lagged, margins compressed, and the stock sulked. Q3 FY26 suggests the turn may be gradual, not dramatic. Are investors allergic to “gradual”? Let’s see.
3) Business Model – WTF Do They Even Do?
Think of Crompton as a home-electrification supermarket:
- Fans: Ceiling, BLDC, industrial—the crown jewel with ~26% share.
- Pumps: Residential, agri, solar—another leadership pocket (~27% share).
- Lighting: LEDs to streetlights—lower share, higher margins.
- Appliances: Water heaters, coolers, kitchen appliances—where premiumisation lives.
- Butterfly: South India’s kitchen boss—mixers, stoves, cookers.
- Solar: Rooftop EPC + pumps—new kid, big TAM.
Manufacturing is under-utilised (fans ~39%, lighting ~36%, pumps ~32%), which means operating leverage exists if demand cooperates. Distribution is deep—~60% store coverage, ~2.9 lakh retailers. Translation: if Crompton wants to push a new product, it can shove it down a lot of shelves.
4) Financials Overview (Quarterly Results Locked)
Result Type Detected: Quarterly Results (Q3 FY26). Lock applied.
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,898 | 1,769 | 1,916 | +7.3% | -0.9% |
| EBITDA (₹ Cr) | 195 | 190 | 165 | +2.5% | +18.5% |
| PAT (₹ Cr) | 101 | 112 | 75 | -9.8% | +33.9% |
| EPS (₹) | 1.53 | 1.71 | 1.11 | -10.5% | +37.8% |
