Prabhudas Lilladher's research report on Crompton Greaves Consumer Electricals
CROMPTON’s ECD segment gained market share in its core categories, despite overall industry decline. TPW fans, coolers, and agri and residential pumps reported a decline in sales, while solar pumps delivered 2x revenue growth and small domestic appliances registered double-digit growth. Lighting segment reported flat growth, despite industry slowdown, and its EBIT margin expanded by 380bps due to improved product mix and operational efficiencies. Butterfly business reported a moderate quarter, while the management has guided for double-digit growth in FY26. CROMPTON has amended its MoA to broaden its business activities, facilitating ECD expansion and entry into solar products. Solar products are gaining strong traction in its portfolio and are expected to deliver robust growth in FY26.
Outlook
We estimate revenue/EBITDA/ PAT CAGR of 11.4%/14.1%/19.0% over FY25-27E. We tweak FY26 earnings while maintaining FY27 estimates. We maintain ‘BUY’ rating with revised TP of Rs430 (Rs423 earlier), based on 35x FY27E earnings.
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Crompton Greaves Consumer - 11082025 - prabhu
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