Havells India Limited has released the transcript of its earnings call held on January 19, 2026, to discuss the financial results for the third quarter and nine months ended December 31, 2025. The company reported a healthy overall performance in Q3 FY26, with revenue growing by 14% and EBITDA increasing by 21% year-on-year. This growth was primarily driven by an accelerated expansion in the cables business, supported by volume growth and commodity price inflation. The company also noted a pickup in demand during the festive season and a healthy uptick in demand for heating products due to good winter conditions. For cooling products, while the previous quarters were challenging, channel inventory is now normalizing. During the quarter, there was an exceptional item impact of ₹45 crore due to additional provisioning under new labor codes. Havells remains optimistic about a gradual recovery in demand but is cognizant of industry headwinds such as commodity inflation and regulatory changes like BEE and e-waste norms. The company is implementing calibrated price hikes and enhancing operational efficiencies to manage these challenges. The management discussed strategies for balancing growth with profitability, emphasizing brand building, distribution reach, and product innovation. They highlighted that the expanded product portfolio provides leverage and operating efficiencies. Regarding cost discipline and investment needs, the company indicated a balanced approach, absorbing short-term pressures and achieving long-term cost efficiencies through improved operations and operating leverage. Financial prudence in managing working capital, inventory, receivables, and capex remains a priority. The company also provided insights into specific segments. The wires and cables business saw healthy double-digit volume growth, over 20%, though raw material price increases significantly impacted revenue. The management addressed concerns about channel inventory buildup due to price increases and assured that Havells would not shift significantly towards a B2B model. For the Lloyd segment, inventory of old BEE norm products is expected to be liquidated in the coming months. The company anticipates a potential 5% to 10% price increase in room air conditioners, excluding GST corrections, to offset rising costs. The ECD segment saw growth led by winter products like oil-filled radiators and water heaters, with fans still facing challenges. The 'other' segment, driven by solar, shows significant opportunity, though initial ramp-up may impact margins. Havells is investing in solar modules and inverters, with a strategic investment in Goldi Solar to secure module supply. The company expects continued capex for cables and wires and a new R&D center, with an estimated ₹1,000 crore spend in the coming year. Havells aims to maintain or gain market share across its core categories, including lighting and small domestic appliances, while focusing on domestic demand for cables and wires, with exports being a secondary focus. The company is also exploring export opportunities for RACs and white labeling.
