Crompton Greaves Shares Hit 52-Week Low After Q2 Miss; PL Capital Maintains Buy View on Solar-Led Growth

Mumbai | November 7 – Crompton Greaves Consumer Electricals shares declined sharply on Friday, touching a 52-week low, after the company reported weaker-than-expected September-quarter results. While revenue growth was marginal, profitability was significantly impacted by higher costs and subdued demand in weather-linked categories, prompting a cautious reaction from the market.

Following the earnings announcement, Crompton Greaves shares continued their downward trajectory, trading around ₹270 after hitting a new 52-week low of ₹269.10. The stock has declined approximately 4% over the past week, 19% in the last six months, and nearly 28% on a year-to-date basis, reflecting investor concerns over margin recovery and category-level demand trends. The company’s current market capitalisation stands at approximately ₹17,389 crore.

Q2 Financial Performance Disappoints

The company posted a 43.2% year-on-year decline in consolidated net profit to ₹71 crore in Q2 FY26, compared with ₹125 crore in the same period last year. Revenue grew 1% year-on-year to ₹1,916 crore, supported by 3% underlying volume growth but offset by pricing adjustments and weaker festive-season demand. Operating performance saw pressure, with EBITDA declining 22% year-on-year to ₹159 crore, and EBITDA margin contracting to 8.2% from 10.7% a year ago. Crompton attributed the margin decline to commodity inflation, competitive pricing pressure, and higher branding and transformation-related investments.

Segment Performance and Solar Order Momentum

The Electrical Consumer Durables division registered a 1.5% decline in revenue, primarily due to muted demand for fans and large domestic appliances amid extended monsoon conditions. In contrast, the Pumps and Small Domestic Appliances portfolios delivered strong performances, supported by new launches and festive-led traction. The company also highlighted rapid growth in its solar rooftop business, securing approximately ₹500 crore in new orders in October, amounting to nearly 50,000 units. Management noted that this marks the beginning of a scalable new growth engine within the portfolio.

PL Capital View: Solar to Drive Medium-Term Upside

According to PL Capital, while near-term earnings remain affected by demand softness and margin pressures, the company’s solar solutions portfolio is scaling rapidly and is expected to become a significant revenue contributor over the medium term. PL Capital maintains a Buy rating on Crompton Greaves with a target price of ₹375, noting visibility in revenue and profit improvement as solar and small appliance categories deepen their contribution and operational efficiency programs progress.

Outlook

While the near-term demand for weather-dependent categories such as fans is likely to remain variable, Crompton’s accelerating solar order book, expanding small appliance portfolio, and ongoing operational streamlining provide a constructive medium-term outlook. The company’s execution in rooftop solar and the upcoming seasonal demand cycle will be key indicators to watch in the quarters ahead.

Read the full report on Crompton Greaves here