Havells India (HAVL IN) – Q3FY26 Result Update – Growth led by W&C with capex plans in focus – Accumulate
Published on 20 Jan 2026
Havells reported moderate growth in Q3FY26, primarily driven by the W&C segment (+32.8%), supported by growth in cables and volume expansion. The company maintained market share across key categories, while likely gaining share in lighting products. In the ECD segment, heating products saw a strong demand uptick, aided by a favorable winter, while channel inventory for cooling products continues to normalize. Old Inventory in RAC and fans is expected to be cleared over the coming quarters into the summer season likely by May’26, while the company is considering a ~5-10% price hike in RAC in Q4FY26 which will be offset by the GST-related price reduction. Capacity utilization in wires stands at ~65-70%, while for cables it stands at ~90-100% .The company has guided for ~Rs10bn capex in FY27, largely towards a new R&D centre and W&C segment while ongoing capex at the Sri City facility for RAC and other white goods remains primarily focused on the domestic market, and company continues to evaluate possible export opportunities. We estimate revenue/EBITDA/PAT CAGR of 11.9% / 12.7% / 13.2% with ECD/Cables/Lloyd revenue CAGR of 8.4%/18.6%/5.3% over FY25-28E and EBITDA margin of 10.0% by FY28E (+20bps). Maintain ‘ACCUMULATE’, with TP of Rs1,634 (same as earlier), based on DCF, which implies 48x FY28E earnings.
