Havells stock faces a margin test after Q1 profit drops 15.4 percent

Published on 10/06/2026 at 11:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Havells stock faces a margin test after Q1 FY27 net income fell to INR 2.90 billion. A 36-analyst Buy consensus puts the average target at INR 1,374.83.

Havells, INE176B01034, Illustration mit AI erstellt.

Havells India (ISIN INE176B01034) reported Q1 FY27 net income of INR 2.90 billion, down 15.4 percent from INR 3.52 billion a year earlier. The result keeps margin recovery at the center of the Havells stock story as the company manages higher input costs, advertising spending and new competition in wires.

Q1 profit falls as margins tighten

Q1 FY27 revenue reached INR 65.18 billion, while operating margin stood at 5.3 percent, according to StockFin. Revenue was 2.8 percent lower than the preceding quarter, and net income fell from INR 7.23 billion in Q4 FY26, showing how sharply quarterly profitability can vary.

As Business Standard reported on October 4, 2026, advertising and promotion spending reached 4.4 percent of Q1 revenue versus a normalized 2.6 percent. The same report said Havells applied price increases of 7 percent to 8 percent across categories, with increases of up to 20 percent in copper and aluminum-intensive cables and wires.

Competition raises the valuation hurdle

The wires and cables business accounts for about 40 percent of company revenue, according to Business Standard. Kotak Research reduced its target from INR 1,325 to INR 1,250, while maintaining its rating, as competition and input costs put pressure on expected margins.

The counterpoint comes from Citi. CNBC TV18 reported on October 1, 2026, that Citi retained a Buy rating and a INR 1,525 target, while forecasting 21 percent revenue growth and 28 percent EBITDA growth for the September quarter. Those forecasts make execution in cables, consumer durables and Lloyd important for the next earnings update.

Analysts see upside but expect delivery

The analyst consensus remains constructive. Investing.com lists a Buy consensus from 36 analysts, with 26 Buy, 6 Hold and 4 Sell ratings. The average 12-month target is INR 1,374.83, with a high of INR 1,700 and a low of INR 1,097. Against the October 6 price, the average target lies 30.5 percent above the stock.

That spread leaves margin delivery as the key test rather than headline revenue alone. Havells stock needs stronger operating leverage to justify the consensus valuation while the wires business faces a more competitive supply backdrop.

Havells stock trades above yearly low

Havells stock was last at INR 1,053.40 on the NSE on October 6, 2026, at 2:55 p.m. IST, up 0.64 percent on the session. The price stood above the 52-week low of INR 1,015.10 and below the 52-week high of INR 1,520.