The company reported a net profit of Rs 734 crore, a 40.6% increase from Rs 522 crore in the same quarter last year. The bottom line was boosted by a steep jump in other income, which surged nearly fivefold to Rs 325.8 crore from just under Rs 70 crore a year ago. The spike was primarily driven by a Rs 283-crore fair value gain booked during the quarter.
EBITDA for the quarter under review came in at Rs 728 crore, a decline of 4.4% from Rs 761 crore in Q4FY25. EBITDA margin stood at 10.8% in Q4, 90 basis points lower than the 11.7% figure reported during the same quarter last year.
Following the results on Wednesday, Morgan Stanley has downgraded Havells stock to ‘Underweight’ from ‘Equal-weight’ and cut its target price to Rs 1,171 from Rs 1,532, a downside of 13.2%. The brokerage cited weak earnings visibility due to macro pressures and rising competition. It highlighted subdued performance across the Lloyd and cables and wires segments, adding that a focus on market share is likely to keep margins under pressure. Earnings per share estimates have been reduced by around 11–12% for FY27 and FY28. The stock is currently valued at about 36x March 2028 estimated earnings.
Goldman Sachs has maintained a ‘Buy’ rating on Havells shares, while revising its target price downward to Rs 1,640 from Rs 1,720. The brokerage noted weak Q4 revenue performance across most segments, with the exception of solar. Margins were supported by inventory gains despite pressure on gross margins. It expects demand recovery in cooling products in the near term, although the overall earnings outlook remains mixed due to cost pressures and demand uncertainty.
Nuvama has maintained a ‘Buy’ rating on Havells shares with a target price of Rs 1,610. The renewable segment, particularly solar products, is expected to drive medium-term growth. The company continues to invest in R&D, advertising, and promotion despite macro and cost pressures. The stock is valued at 48x FY28 estimated earnings and is currently trading at around 39.5x multiples.
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The company reported a modest performance in Q4, as stocking of cooling products was affected by a milder start to the summer season. While demand from the industrial infrastructure segment remained strong, consumer categories saw cautious trade sentiment amid higher costs driven by global disruptions.
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