Revenue from operations inched up 1% year-on-year to Rs 1,916 crore from Rs 1,896 crore, supported by an underlying volume growth of 3%, though partially offset by price adjustments. The company noted that this performance came despite challenging market conditions and unfavourable weather trends.
EBITDA dropped 22.2% year-on-year to Rs 158 crore against Rs 204 crore a year ago, impacted by commodity cost inflation, pricing pressure, sustained investments in advertising and promotions, and higher operating expenses linked to ongoing transformation initiatives. Consequently, the EBITDA margin contracted to 8.2% from 10.7% in the corresponding period last year. Crompton also incurred a restructuring cost of Rs 20.36 crore at its Baroda facility as part of efforts to repurpose operations from one product line to four.
The company’s subsidiary, Butterfly Gandhimathi Appliances, continued to outperform the industry, posting 14% year-on-year revenue growth to Rs 293 crore, driven by double-digit expansion across core categories and steady volume growth. Butterfly’s EBITDA increased 21% year-on-year, aided by stronger gross margins.
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In the Electrical Consumer Durables (ECD) segment, revenue stood at Rs 1,371 crore, down 1.5% year-on-year, largely due to adverse weather conditions. While pumps and small domestic appliances recorded robust growth, fans and large domestic appliances remained under pressure. During the quarter, the company’s solar rooftop business achieved a major milestone, securing its first-ever order of Rs 52 crore, followed by a record order of Rs 445 crore, taking the total order value to Rs 500 crore covering 50,000 units. These projects are expected to meaningfully boost Crompton’s direct-to-consumer business and establish a new growth engine, supported by its strong execution capabilities and resilient supply chain network.
Should you buy, sell or hold?
Morgan Stanley maintained an Equalweight rating with a target price of Rs 310, implying a 12% upside from current market levels. This was after the company’s adjusted PAT missed estimates by 24–25%, largely due to lower revenue (down 3%), weaker ECD margins and reduced other income. The international brokerage expects cost pressures ahead due to energy rating changes from January 2026. Crompton also reported Rs 500 crore in solar rooftop inflows during Q3, with execution expected over the next 6–12 months. Management remains optimistic on a Rs 25,000 crore total addressable market, targeting Rs 200 crore revenue from this segment in the next 18–24 months.
Goldman Sachs maintained its Buy rating, trimming the target price to Rs 330 from Rs 340. The company’s two rooftop solar order wins worth Rs 500 crore mark its entry into a promising new growth area, expected to be margin-neutral in the near term. Margin pressure stemmed from ECD weakness and commodity inflation, but a recovery is expected as inventory normalises and recent price hikes kick in. Goldman Sachs sees rooftop solar as a key growth driver from FY27 onwards, with near-term efforts focused on strengthening the core portfolio. Despite a soft quarter, the brokerage believes the risk-reward remains favourable, viewing Crompton as one of the cheapest consumer durable plays under its coverage.
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Shares of the company ended the previous session at Rs 277.55, lower by 2.5% from the last close on the NSE. Crompton Greaves shares are down 26% since the beginning of the year.