Brokerages remain neutral on Havells India following Q1 show, see 5% downside

Market experts said that while the profit and revenue came in-line with expectations, the EBITDA margin fell under estimates.

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26 Aug, 2025 12:21

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Brokerages remain muted on Havells India despite the home appliances maker reporting a 43 percent jump in net profit for the quarter ended June.

Havells India reported a consolidated net profit of Rs 411 crore, up 43 percent YoY on July 18, while there was a 20 percent YoY increase in revenue at Rs 5,798 crore in the June quarter.

The earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter stood at Rs 576 crore, higher by 43 percent YoY.

The EBITDA margin clocked in at 9.9 percent against 8.3 percent recorded in Q1FY24 and 11.7 percent in Q4FY24.

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Market experts said that while the profit and revenue came in-line with expectations, the EBITDA margin fell under estimates.

"To combat commodity inflation, price hikes were rolled out across categories in Q1. We remain cautiously optimistic about Q2, which is seasonally weak, and expect cost efficiencies to drive growth," said Nuvama Institutional Equities.

The brokerage retained its 'hold' rating, with an updated target price of Rs 1,770, up from Rs 1,376 earlier. This indicates a downside of around 5.3 percent from the previous close.

Japanese brokerage Nomura maintained its 'neutral' call on Havells, with a price target of Rs 1,900, as the margins for the quarter was a miss on the company's weaker mix. Further price hikes coupled with stable commodity prices should support margins going ahead, said the brokerage.

While strong sales was driven by a good offtake in the summer products category, sales for switchgears and lighting declined. Additionally, there was a marginal election impact on sales, noted Jefferies. The brokerage decided to keep its 'hold' call intact, with a price target of Rs 1,880 apiece.

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