Havells India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Havells India Ltd filed with BSE on 21 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Havells reported strong revenue growth in Q1 FY27 despite raw material inflation and disruptions from the West Asia situation, with cooling products aided by a delayed summer onset. Management undertook staggered price hikes across categories and more than doubled advertising spend year-on-year, which it said impacted quarterly profitability but would normalize over the rest of the year. The company began reporting Renewables as a separate segment this quarter, citing robust growth in that business.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Switchgear sales decline: 4% decline year-on-year (Q1 FY27)
p. 9
“a 4% decline in sales year-on-year and with a margin dip seems a bit concerning to me”
Sonali, page 9 of the filed PDF · View the filing
Capex for FY27: INR1,400 crores (FY27)
p. 10
“INR1,400 crores, yes.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Capex for cables and wires business: about INR800 crores (FY27)
p. 9
“Look, the bigger part of that is going into the cables and wires business, almost about INR800 crores.”
Anil Rai Gupta, page 9 of the filed PDF · View the filing
Capex for new R&D center: about INR200 crores (FY27)
p. 9
“About INR200 crores is going into the new R&D center.”
Anil Rai Gupta, page 9 of the filed PDF · View the filing
Average price hike across categories: 7% to 8% (Q1 FY27)
p. 8
“But generally speaking, 7% to 8% would be the right price hike, average if we take it.”
Anil Rai Gupta, page 8 of the filed PDF · View the filing
Price hike range across categories: 5% to 20% (Q1 FY27)
p. 10
“we've ranged between, let's say, 5% to 20%.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Lloyd air conditioner volume growth: single digits (Q1 FY27)
p. 5
“The volume growth in air conditioners would be single digits, but the value growth has been higher because of the calibrated price hikes during the first half of the year.”
Anil Rai Gupta, page 5 of the filed PDF · View the filing
Cables and wires volume growth: largely flat, very low single-digit (Q1 FY27)
p. 7
“So volume has been largely flat, very, very low single-digit, but I will term it more as flat.”
Rajiv Goel, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
A&P spend as percentage of revenue — around 2.7% to 2.8% of net sales · FY27
stated firmly by Rajiv Goel
p. 6
“And look, our long-term average has been around close to 2.7% of revenue as a company as a whole. I'm not getting into consumer otherwise. We expect that to remain the same even for the current year.”
Rajiv Goel, page 6 of the filed PDF · View the filing
Full year A&P budget — around INR700-800 crores · FY27
stated conditionally by Anil Rai Gupta
p. 6
“Yes, somewhere around that number.”
Anil Rai Gupta, page 6 of the filed PDF · View the filing
Switchgear demand — Q2 FY27
stated conditionally by Rajiv Goel
p. 4
“we are expecting this to rebound this quarter.”
Rajiv Goel, page 4 of the filed PDF · View the filing
Switchgear and overall growth — good growth · Q2
stated firmly by Rajiv Goel
p. 4
“So we are very confident that Q2 will see a good growth in the international and overall switchgear segment.”
Rajiv Goel, page 4 of the filed PDF · View the filing
Renewables segment margins — H2
stated conditionally by Rajiv Goel
p. 4
“Yes, that's right, next quarters.”
Rajiv Goel, page 4 of the filed PDF · View the filing
Contribution margins — stabilizing
stated as an aspiration by Anil Rai Gupta
p. 10
“As far as margins are concerned, going forward, I think we are looking at stabilizing contribution margins.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Lloyd contribution margin — double digit levels · in full quarters
stated firmly by Anil Rai Gupta
p. 9
“But otherwise, in full quarters, we will definitely see it coming back to double digits.”
Anil Rai Gupta, page 9 of the filed PDF · View the filing
A&P spend for Lloyd — elevated · next couple of years
stated firmly by Anil Rai Gupta
p. 12
“So the way we look at it is that Lloyd spends on A&P will remain elevated for the next couple of years because there is a dual requirement of also premiumizing the brand in the product categories”
Anil Rai Gupta, page 12 of the filed PDF · View the filing
Overall revenue growth momentum — resilient growth · FY27
stated as an aspiration by Anil Rai Gupta
p. 7
“But yes, the quarter start has been very positive, and we are hopeful that a good resilient growth momentum will maintain during the year.”
Anil Rai Gupta, page 7 of the filed PDF · View the filing
Volumes and profitability improvement — FY27
stated as an aspiration by Anil Rai Gupta
p. 11
“So I do see that we should see improvement in this year, both in volumes and profitability.”
Anil Rai Gupta, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said switchgear's international business, normally around 15% of the segment, was impacted by shipping disruptions but expects a rebound in Q2, with domestic demand stable.
Answered by Rajiv Goel
Asked by Balasubramanian: On switchgear, what caused the margin decline and what is the international demand outlook?
p. 4
“The international business is normally 15%, but it varies from quarter-to-quarter.”
Rajiv Goel, page 4 of the filed PDF · View the filing
Management said there was significant raw material volatility and staggered price hikes, alongside distribution strategy changes, but believes market share was maintained or gained on a secondary sales basis.
Answered by Anil Rai Gupta
Asked by Natasha Jain: Did price hikes cause the company to lag industry growth in Lloyd, ECD and cables?
p. 5
“So a lot of things were happening in the first half of the calendar year. But I do believe that on a long-term basis, including if we take secondary sales from the channel, we do believe that we have done a very robust job of ensuring that we do not lose any market share or, in fact, gain market share.”
Anil Rai Gupta, page 5 of the filed PDF · View the filing
Management reiterated it does not give annual guidance but expressed optimism about growth momentum for the year.
Answered by Anil Rai Gupta
Asked by Rehan: Can the company now give a clearer FY27 revenue and margin guidance given Q1 results?
p. 7
“I think if you attended calls for a longer period of time for Havells, we do not give guidance for the year.”
Anil Rai Gupta, page 7 of the filed PDF · View the filing
Management attributed the gap to higher A&P spend across businesses that will normalize during the year, and said average price hikes were 7-8%.
Answered by Anil Rai Gupta
Asked by Siddhartha Bera: What caused the gap between contribution margin and EBIT margin in cables and wires, and how much price hike has been taken in ECD/Lloyd?
p. 8
“No, I think, as far as your first question is concerned, yes, it is due to higher A&P spends during the quarter.”
Anil Rai Gupta, page 8 of the filed PDF · View the filing
Management said raw material volatility affected the whole segment along with West Asia disruptions but expects domestic demand to stabilize from Q2.
Answered by Anil Rai Gupta
Asked by Sonali: What explains weaker switchgear performance and margins, and what is the outlook?
p. 10
“I think it has fairly stabilized, which should mean that the demand should be coming back from the second quarter.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Management indicated normalized contribution margins for switchgear are between 37% and 40%.
Answered by Anil Rai Gupta
Asked by Keyur Pandya: What is a normalized margin level for switches and switchgears given profitability decay?
p. 14
“You are saying that the switchgear margins, the normalized margins are somewhere between 37% to 40% contribution margin.”
Anil Rai Gupta, page 14 of the filed PDF · View the filing
Management declined to provide a segment-wise breakup of advertising spend.
Answered by Rajiv Goel
Asked by Ravindranath Nayak: Can the A&P spend be broken down by Lloyd versus non-Lloyd business?
p. 15
“As I said, we do not give bifurcation on the division-wise.”
Rajiv Goel, page 15 of the filed PDF · View the filing
Management gave a general statement of confidence without distinguishing between price and volume drivers.
Answered by Anil Rai Gupta
Asked by Pulkit Patni: Is management's confidence on growth driven by price increases or volume growth?
p. 17
“I'm always confident about Havells growth.”
Anil Rai Gupta, page 17 of the filed PDF · View the filing
Risks flagged
Raw material inflation across categories requiring calibrated price hikes
p. 3
“Given significant raw material inflation, we undertook calibrated and staggered price hikes across the categories to offset the impact.”
Anil Rai Gupta, page 3 of the filed PDF · View the filing
West Asia situation disrupting exports and switchgear international business
p. 3
“the uncertainties arising from the West Asia situation.”
Anil Rai Gupta, page 3 of the filed PDF · View the filing
Delayed summer onset limiting cooling products demand benefit
p. 3
“During quarter 1, a decent summer supported cooling products demand, although a delayed onset restricted the full benefit of the season.”
Anil Rai Gupta, page 3 of the filed PDF · View the filing
Vessel unavailability disrupting international switchgear shipments
p. 4
“It primarily happened because there are no vessels going, but things have considerably eased since then.”
Rajiv Goel, page 4 of the filed PDF · View the filing
Front-loaded advertising spend impacting quarterly profitability
p. 3
“While this front-loading of investments impacted the quarter profitability, these will normalize during the rest of the year.”
Anil Rai Gupta, page 3 of the filed PDF · View the filing
Raw material price volatility affecting switchgear trade confidence and sell-in
p. 10
“I would say because of this volatility in raw materials, there was also confusion amongst the trade also on buying products.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Copper and aluminum price volatility affecting cables and wires demand
p. 10
“Cables and wires have seen a larger price increase because of direct relation with copper and aluminum.”
Anil Rai Gupta, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.