Crompton Greaves Consumer Electricals (CROMPTON IN) – Q3FY26 Result Update – Expanding TAM into new segments – BUY
Published on 06 Feb 2026
CROMPTON’s ECD segment grew by 7.6% with sequential improvement in fans performance, supported by BLDC growth across channels. pumps continue to maintain strong growth with 2x growth in solar pumps and gaining market share. Due to continuous increase in commodity prices, company has implemented price hike of ~1-1.5% in Fans segment in Jan’26 with further hikes planned in Q4FY26 and Q1FY27. CROMPTON is gaining strong traction in its solar rooftop with recognizing Rs190mn into revenue and Rs3.7bn worth of orders in hand which is executable in coming 9-12 months. Butterfly grew 6.5%, with cookers and gas stoves emerged as primary growth drivers during the quarter. Lighting segment recorded double-digit volume growth in both B2C & B2B channels driven by ceiling lights and accessories. Company has entered into new adjacent segment i.e. wires and mobile accessories & power solutions to expand their addressable market with leveraging its brand equity and pan India distribution. We estimate revenue/EBITDA/PAT CAGR of 17.2%/25.1%/34.2% over FY26-28E. We have downward revised FY27/FY28 earnings by 5.1%/4.5%, factoring in rising commodity prices and diversification toward lower-margin segments. We maintain ‘BUY’ rating with revised TP of Rs346 (Rs362 earlier), based on 27x Mar’28 earnings.
