Havells India Shares Decline 6% Following Disappointing Q4 Earnings, Brokerages Adjust Target Prices

Havells India Shares Fall 6 Percent After Reporting Revenue Below Estimates

Havells India's shares declined by 6.03 percent to Rs 1,267.40 on the National Stock Exchange (NSE) on Thursday, following the company's report of revenue for the March quarter below estimates. The decline marked an end to the company's two-day gaining streak.

The company's room air conditioner business weighed heavily on its performance, with revenue from the electrical consumer durables (ECD) segment falling 2 percent to Rs 976 crore. Revenue from Lloyd Consumer declined 19 percent to Rs 1,514 crore, while revenue from the lighting and fixtures segment remained flat at Rs 438 crore.

However, other segments showed a positive trend, with revenue from cables rising 14 percent to Rs 2,474 crore and the switchgears segment reporting a 6.4 percent increase in revenue to Rs 736 crore.

Read also: Transformers and Rectifiers Posts 16% Jump in Revenue, Registers Rs 77 Crore PAT in Q4

FY26 Performance

For the full financial year 2026 (FY26), Havells India reported a 14.9 percent increase in profit to Rs 1,689.25 crore, while total consolidated income increased 4.26 percent to Rs 23,022.16 crore.

Brokerages have cut their target prices on the stock, with Nomura reducing its target price to Rs 1,620 from Rs 1,798, while maintaining a "buy" rating. Nuvama Institutional Equities trimmed its FY27 earnings per share estimate to Rs 27.4 and reduced the target price to Rs 1,610 from Rs 1,680, while maintaining a "buy" call.

Brokerage Estimates

Read also: IPO Pipeline Sees Repeat Names as JM Financial, IIFL Capital Dominate League Tables

Havells India has attributed the decline in its revenue to a milder start to summer, which impacted cooling product demand. However, the company has stated that it retained market share in the ECD segment and expects room air conditioner inventory levels to improve by end-April. The company has also implemented price hikes of 8-15 percent to offset higher input costs.

JM Financial Institutional Securities has downgraded the stock to "add" from "buy" and cut the target price to Rs 1,490 from Rs 1,515, citing potential margin pressure in the wires and cables segment. Informist reported that Citigroup maintained a "neutral" rating and reduced the target price to Rs 1,500 from Rs 1,600, citing pressure on margins due to rising competition.