Brokerage houses delivered a mixed verdict on Havells India after the company reported a weak set of Q1FY26 results, impacted by soft summer demand, weak performance in key consumer segments, and operational pressures. While some brokerages like Morgan Stanley and CLSA maintained their positive stance, others such as Jefferies and MOSL were more cautious, citing near-term risks.
Jefferies has maintained a Hold rating on Havells and cut its target price to ₹1,635 from ₹1,800. It cited a challenging quarter on multiple fronts and noted that the risk-reward appears stretched. Cables and wires remained a positive outlier, but the overall Q1 performance was weak.
CLSA maintained an Outperform rating with a target price of ₹1,915. According to CLSA, revenue and EBITDA fell short of estimates due to weaker-than-expected summer demand. While Lloyd and ECD segments declined, growth in cables & wires and switchgears partly offset the weakness.
Morgan Stanley retained an Overweight rating with a target price of ₹1,884. The brokerage reported that revenue and earnings missed its estimates by 10% and 12%, respectively. Excluding cables & wires and Lloyd, other segments saw a 5% revenue decline.
Motilal Oswal Financial Services (MOSL) maintained a Neutral rating and reduced its target price to ₹1,680 from ₹1,710. MOSL highlighted a 6% YoY revenue drop to ₹5,460 crore, a 10% fall in EBITDA, and ~15% YoY decline in PAT to ₹350 crore. The performance was impacted by weak summer demand, especially in cooling products.
Nuvama retained a Buy rating on Havells with a reduced target price of ₹1,820 from ₹1,920. The firm noted that Q1FY26 revenue declined 6% YoY due to a fall in ECD and Lloyd segments. However, cables & wires grew 27% YoY with healthy margins. Nuvama expects performance to improve over the medium term as demand normalises.
Brokerage Summary Table: Havells India
| Brokerage | Rating | Target Price | Commentary Highlights |
|---|---|---|---|
| Jefferies | Hold | ₹1,635 | Risk-reward appears stretched, weak Q1 |
| CLSA | Outperform | ₹1,915 | Weak summer demand, festive season recovery likely |
| Morgan Stanley | Overweight | ₹1,884 | Missed estimates, C&W supports outlook |
| MOSL | Neutral | ₹1,680 | EPS cuts; infra-driven C&W growth offset cooling weakness |
| Nuvama | Buy | ₹1,820 | Weakness near-term, strong medium-term recovery expected |
Disclaimer: The views and recommendations given in this article are those of the brokerages mentioned. They do not represent the views of this publication. Investors are advised to consult certified financial advisors before making any investment decisions.
