Havells Share Price Slumps Over 5% On Weak Margin, Revenue — Should You Buy?

Shares of Havells India Ltd. are under pressure after the company reported muted growth in revenue and operating income for the quarter ended March 31, 2026.

Havells' shares slumped over 5% as of 9:45 am to trade at around Rs 1,273.40 apiece.

Stocking of cooling products was impacted by milder start to the summer season. Income from the cables segment grew by 14% to Rs 2,474 crore, compared with Rs 2,169 crore in the same period last year. The switchgears business recorded a year‑on‑year growth of 6%.

Havells India (Consolidated, YoY)  

• Revenue up 2.5% at Rs 6,705 crore versus Rs 6,544 crore (Bloomberg estimate: Rs 7,207 crore)
• EBITDA down 3.6% at Rs 729 crore versus Rs 757 crore (Bloomberg estimate: Rs 668 crore)
• Margin at 10.9% versus 11.6% (Bloomberg estimate: 10.2%)
• Net Profit up 40% at Rs 723 crore versus Rs 518 crore (Bloomberg estimate: Rs 467 crore)

The board recommended a final dividend of Rs 6 per equity share for the financial year 2025-26. This is in addition to the interim dividend declared during the FY26 for an amount of Rs 4 per share.

The final dividend, if approved by the shareholders in the forthcoming Annual General Meeting (AGM), shall be paid/ dispatched to the shareholders on or before 30 days from the date of AGM. 

Brokerage Views

Citi on Havells

• Citi maintains a Neutral rating and cuts the target price to Rs 1,500 from Rs 1,600.
• Revenue growth disappointed across all segments.
• The brokerage sees more misses than hits in the quarter.
• Rising competitive intensity, especially in Cables & Wires, is likely to keep margins under pressure.
• Sustained growth and margin improvement will be key for any re-rating.

Jefferies on Havells

• Jefferies maintains a Hold rating with a target price of Rs 1,290.
• Cables & Wires remained the bright spot in the quarter.
• Sales traction in cables helped offset weakness in consumer products.
• However, Lloyd reported an EBIT loss for the fourth consecutive quarter.
• The brokerage estimates a 20% EPS CAGR over FY26–28, with valuations slightly above the 10-year average.

Macquarie on Havells

• Macquarie maintains an Outperform rating with a target price of Rs 1,588.
• The company reported a good quarter with margin surprises.
• Cables continue to lead growth.
• The brokerage likes Havells' diversified product mix, strong brand and premium positioning.
• However, near-term growth and margin risks persist due to macro uncertainty, including the impact of Middle East tensions.

ALSO READ: Havells India Q4 Results: Shares Jump After Profit Beats Estimates, Dividend Approved

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