Motilal Oswal Financial Services (MOSL) has retained its neutral stance on Havells India and lowered the target price to ₹1,680 from ₹1,710, following a weaker-than-anticipated performance in Q1FY26. The brokerage flagged subdued demand in key product segments and a miss on both revenue and earnings estimates.
The company’s revenue dropped by approximately 6% year-on-year to ₹5,460 crore, primarily due to underperformance in Lloyd, Electrical Consumer Durables (ECD), and lighting categories. EBITDA fell 10% YoY to ₹520 crore, with margins shrinking 40 basis points to 9.5%. Profit after tax declined ~15% to ₹350 crore, which was 11% below MOSL’s estimate.
While the summer season proved weak and demand for cooling products remained soft, the cables and wires (C&W) segment continued to perform well on the back of robust infrastructure and industrial demand.
MOSL has revised its FY26/FY27 EPS estimates downward by ~8%/7%, though it expects recovery ahead, supported by festive and rural market tailwinds.
Stock price: ₹1,533.00 (as of last close)
Disclaimer: The views expressed in this article are those of the brokerage firm. Please consult your financial advisor before making investment decisions.
