Crompton Greaves Consumer Electricals Ltd Q2FY26 – Fans are spinning, lights are dimming, and solar pumps are making it rain
(₹1,916 crore revenue, PAT ₹91 crore, Rs.500 crore rooftop solar orders)!
1. At a Glance
Crompton Greaves Consumer Electricals Ltd (NSE: CROMPTON) — the 75-year-old brand that taught Indian homes how to keep calm and stay “fan-tastic” — just posted its Q2FY26 results, and let’s just say the lights flickered a bit. Revenue stood at ₹1,916 crore, almost flat YoY (up just 1.02%), while PAT dropped sharply by 31.8% to ₹85.2 crore. The market punished it too — the stock closed at ₹279, down nearly 31% in the past year.
Yet, this is no dying bulb. The company’s Crompton 2.0 strategy is alive and kicking — investing ₹92 crore in ads, pumping cash into R&D, and making a full-blown entry into renewable energy. With a market cap of ₹17,930 crore, zero debt, and a respectable ROE of 17.4%, Crompton is trying to rebrand itself from “your grandfather’s fan company” to “India’s next green-tech appliance powerhouse.”
In Q2FY26, it also bagged massive rooftop solar orders worth ₹500 crore — so yes, Crompton is now installing panels on roofs while cooling your living rooms. The transformation story continues, and the company even declared itself net cash positive after repaying ₹300 crore in NCDs.
The question is: can Crompton 2.0 light up profits the way it’s lighting up rooftops? Let’s open the switchboard and find out.
2. Introduction
Remember when “Crompton fan” meant that white ceiling contraption spinning above your head while you studied for exams that didn’t matter? Fast forward to FY26 — the company is now chasing solar rooftops, smart water pumps, and premium kitchen appliances.
Crompton Greaves Consumer Electricals (CGCEL) is one of India’s most recognized consumer durable names, operating across two major verticals — Electrical Consumer Durables and Lighting. After acquiring Butterfly Gandhimathi Appliances (of mixer-grinder fame), Crompton went full south-Indian-kitchen mode. Now, the “Crompton + Butterfly” combo promises a synergy that could make even Idli batter proud.
But let’s be honest — the last few years weren’t exactly smooth. Profits have stagnated, market share in lighting slipped to 8%, and competition from Havells, V-Guard, and Usha is heating up like a Crompton water heater in May. Still, management has kept its cool (literally), pushing Crompton 2.0 with four focus pillars: Premiumization, GTM excellence, Brand investments, and Innovation.
From fans to fridges, from pumps to panels, Crompton wants a piece of everything that hums, glows, or spins in your house. And in Q2FY26, the company decided to climb your rooftop — not for cable repair, but to install a solar plant.
3. Business Model – WTF Do They Even Do?
Crompton makes your home functional — and occasionally fabulous.
Its empire spans four broad product families:
Fans – ceiling, pedestal, wall-mounted, industrial, and exhaust fans. They’ve transitioned to new BEE norms and are now focusing on energy-efficient designs.
Pumps – residential, agricultural, solar, and specialty pumps. (The PM-KUSUM solar scheme is now a goldmine for Crompton.)
Appliances – water heaters, coolers, mixer grinders, irons, built-in kitchen appliances. The Butterfly brand rules southern kitchens.
Lighting – LEDs, battens, streetlights, architectural lights, and good old tube lights.
Revenue breakup (Q1FY24):
Electrical Consumer Durables: 76%
Lighting: 12%
Butterfly: 12%
And if you’re wondering who’s actually buying, Crompton’s products sit in ~60% of India’s electrical goods stores, with 5,763 channel partners and 2.89 lakh+ retailers. In short, if you’ve walked into an electric shop in India, chances are you’ve already funded a piece of Crompton’s balance sheet.
The new angle? Crompton has now become a solar EPC player. Orders from state agencies like HAREDA (₹65.6 crore cumulative) and NREDCAP (₹445 crore) are giving it a clean energy halo.
So yes — the same company that sold fans to your parents is now powering government solar projects worth hundreds of crores. Talk about evolution.
4. Financials Overview
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue (₹ Cr)
1,916
1,896
1,998
+1.0%
-4.1%
EBITDA (₹ Cr)
158
204
192
-22.5%
-17.7%
PAT (₹ Cr)
85.2
128
124
-33.4%
-31.4%
EPS (₹)
1.11
1.94
1.90
-42.8%
-41.6%
Annualised EPS: ₹1.11 × 4 = ₹4.44 P/E: ₹279 / ₹4.44 = ~62.8x (So expensive, it could buy its own air conditioner.)
Commentary: Revenue’s flatlining like a dying LED bulb, while profits are fading faster than the light in a power cut. The Crompton 2.0 spend binge (ads, R&D, solar pivot) clearly dented margins — OPM fell from 11% to 8%.
But here’s the twist — even as profits dip, Crompton is emerging as a zero-debt company with ₹300 crore NCDs repaid and a ₹500 crore solar order book. The fundamentals are stable; it’s the sentiment that’s taking a beating.
