Crompton Greaves Consumer Electricals (CROMPTON IN) – Q2FY26 Result Update – Near term optimism will be led by solar products – BUY
Published on 07 Nov 2025
CROMPTON’s ECD segment declined by 1.5% due to prolonged monsoons and fans saw single digit de growth; while margin contracted 430bps due to commodity prices and operating leverage. SDA posted double-digit growth, LDA saw de-growth, and large kitchen appliances delivered a strong 34% QoQ growth. Lighting grew 3.1% YoY, driven by high-teen volume growth, with both B2B and B2C delivering strong performance. Company has implemented price hike of ~1.4% in Fans segment in Nov’25. CROMPTON is gaining strong traction in its solar portfolio with strong orders, securing nearly Rs5bn of rooftop orders within a month and rapidly scaling both Solar pumps and Solar rooftop segments. Butterfly grew 13.3%, with core categories delivering double-digit growth supported by sustained volumes and new product launches. Inventory levels remain reasonable, with initiatives under Utkarsh 1 & 2. We estimate revenue/EBITDA/PAT CAGR of 12.3%/13.0%/15.8% over FY25-28E. We downward revise FY27/FY28 earnings by 4.8%/3.8%. We maintain ‘BUY’ rating with revised TP of Rs375 (Rs391 earlier), based on 30x Sep’27 earnings.
