Havells India's Q2 earnings for FY26 have left investors uneasy, triggering concerns about potential earnings downgrades. While the company reported an increase in net profit, certain aspects of the results have led to a cautious outlook.

For the second quarter ended September 30, 2025, Havells India reported a consolidated net profit of ₹318.28 crore, an 18.86% increase compared to ₹267.77 crore in the same quarter of the previous fiscal year. The company's total income also rose by 5.04% to ₹4,865.59 crore. Revenue for the quarter increased by 5.29% to ₹4,779.33 crores.

However, the company's performance was not uniformly positive. Havells' electrical consumer durables business experienced a decline of 1.7% to ₹841.83 crore. The Lloyd business, in particular, faced challenges, with revenue decreasing by 18.2% to ₹482.16 crore in Q2 FY26. This decline was attributed to weak summer demand and higher channel inventory.

Segment-wise, the cables business demonstrated strong growth, with revenue increasing by 12.4%. The switchgears business also saw an 8% increase. However, the weak performance of summer products, particularly within the Lloyd segment, has cast a shadow over the overall results.

Several brokerage firms have expressed concerns regarding Havells India's Q2 performance. Some have trimmed their earnings estimates, citing the subpar performance in specific segments. The shorter-than-usual summer impacted sales of cooling products, and the higher channel inventory further dampened the numbers.

Despite these concerns, some analysts maintain a positive outlook on Havells India. Following the Q2 results, some analysts anticipate a potential rise in the company's share price, with projections reaching ₹1,520.30 per share in the coming year. However, they also caution investors to consider market volatility and conduct thorough research before investing.

Anil Rai Gupta, Chairman and Managing Director of Havells India, acknowledged the weakness in summer products but expressed optimism about improved consumer sentiment and demand due to recent GST rate rationalization. The company anticipates that the GST cuts on ACs will benefit consumers during the summer season. Havells is also working to normalize inventory levels for summer-heavy products by Q3 or early Q4.

Looking ahead, Havells India is investing ₹1400 crore in capital expenditure, primarily for cable capacity expansion and a new Lloyd refrigerator facility. The company is also preparing for new BIS norms effective January 1, with potential cost increases expected to be passed on to consumers.

Overall, Havells India's Q2 results present a mixed picture. While the company has demonstrated growth in certain segments and an overall increase in net profit, the challenges in the Lloyd business and the impact of weak summer demand have raised concerns among investors. The coming quarters will be crucial in determining whether Havells can address these challenges and sustain its growth trajectory.