Havells India Q2 FY27 Results Analysis: Revenue Jumps 35%, EBITDA Margin Recovers 170 bps

Havells India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 6,416.62 Cr (+34.62% YoY) and PAT growth of +11.13% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 34.62% YoY to Rs.6,416.62 cr on copper-price pass-through in cables (+47.86%), with EBITDA margin recovering 170 bps QoQ to 8.98% and management's Q1 guidance items (A&P normalization, switchgear recovery, capex pacing) all on track. However, margins remain below the year-ago level, cables margin compressed to 10.15%, and Lloyd's loss widened to Rs.(103.65) cr. No guidance beats versus management's own prior targets; the setup is one of guided normalization in progress with commodity pass-through capping margin upside.

Key Investment Insights

Key Positives

• Revenue grew 34.62% YoY to Rs.6,416.62 cr, led by cables (+47.86% YoY to Rs.2,998.90 cr)
• Switchgears revenue recovered to +31.29% YoY from −3.5% in Q1, with segment margin at 25.38%
• EBITDA margin improved 170 bps QoQ to 8.98% from Q1's 7.28% trough
• A&P spend normalized to 2.1% of revenue (Rs.136.33 cr) from 4.4% (Rs.285.73 cr) in Q1, as guided
• Renewables revenue grew 147.81% YoY to Rs.329.16 cr with segment result up 443.91% YoY to Rs.27.25 cr
• Normalized YoY PAT growth is ~+24.8% after adjusting Q2FY26's Rs.45.27 cr Faridabad land-sale gain from the base
• Zero borrowings maintained; finance cost declined 46.83% YoY to Rs.4.86 cr
• H1 capex of Rs.654 cr is on track against the FY27 guidance of ~Rs.1,400 cr

Risk Factors

• Cables segment margin compressed from 13.72% to 10.15% YoY as copper-price pass-through drove revenue but not rupee margins
• EBITDA margin of 8.98% remains 29 bps below the year-ago 9.27% and below the 9-9.5% benchmark
• Lloyd Consumer loss widened to Rs.(103.65) cr (−16.87% margin) vs Rs.(98.85) cr loss in Q2FY26
• Lighting & Fixtures was the slowest segment at +6.96% YoY revenue with margin falling from 13.46% to 10.23%
• Effective tax rate rose 264 bps YoY to 25.91% on a higher deferred tax charge
• H1 free cash flow was negative at Rs.(810.85) cr with inventories up 13.5% since March