01 — At a Glance
The Electrical Giant That Lost 4% In A Month (But Management’s Cheerful)
- 52-Week High / Low₹1,674 / ₹1,250
- FY25 Revenue (Full Year)₹21,805 Cr
- FY25 PAT (Full Year)₹1,470 Cr
- Full-Year EPS (FY25)₹23.48
- Q3 FY26 EPS₹4.80
- Book Value₹138
- Price to Book9.76x
- Dividend Yield0.74%
- Debt / Equity0.03x
- Return Over 1 Year-7.62%
The Reality Check: Havells closed Q3 FY26 with ₹5,588 crore quarterly revenue (+14.3% YoY), ₹334 crore PAT (+20% YoY), and an exceptional item of ₹45 crore labour-code provisioning that inflated the reported profit. Strip that out? Normalized PAT closer to ₹289 crore. Annualized EPS lands at ₹19.2 against CMP ₹1,349—making the P/E not 55.7x but a more reasonable 70x. Still premium. Still expensive. The stock has delivered -7.62% over the past year while the company genuinely grew. Welcome to the world of multiple compression.
02 — Introduction
When A ₹84,000 Crore Giant Moves, The Electricity Market Shivers
Havells India is not new to anyone with a home. Cables in your walls? Likely Havells. Fans on your ceiling? Havells or Crompton—and your electrician will swear one is better than the other over chai. AC in your bedroom? Lloyd (which Havells owns). Switches and circuit breakers? Again, Havells built the majority of India’s electrical backbone since 1983.
The company is simultaneously two different stories: the boring, stable, profitable fast-moving electrical goods (FMEG) powerhouse, and a growth-obsessed cables juggernaut that’s doubling capacity every few years. In Q3 FY26, both stories collided into a single quarterly result that had investors asking—is this a compounding machine or a value trap in disguise?
Here’s the timeline. FY25 saw Havells hit all-time revenue of ₹21,805 crore (+17% YoY) and PAT of ₹1,470 crore. But growth has softened visibly in the nine months ended December 2025. Consumer demand is sluggish—air conditioners faced a genuinely awful monsoon-heavy summer. Cables are booming, but raw material prices (copper specifically) are acting like a margin tax. The company invested ₹600 crore into Goldi Solar (for module supply security). The stock has compressed from ₹1,674 to ₹1,349—a 19% haircut—despite fundamentals holding up.
Let’s find out what’s really true and what’s just management commentary delivered with conviction.
Concall Note (Jan 2026): “Cable is moving much faster than the other product categories. Disciplined spends supporting leverage.” Management’s happy. Investors are not. That gap is what we’re going to investigate.
03 — Business Model: The Two-Engine Paradox
Cables Boom. Everything Else? Lumpy.
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