Noida: Havells India is preparing another round of price increases of 5–7% across product categories in the December quarter, as rising raw material costs continue to put pressure on the electrical goods manufacturer’s margins. The proposed hikes follow price increases of 10–25% across several categories over the past year, with cables and wires seeing increases exceeding 30%.

Chairman and Managing Director Anil Rai Gupta indicated during the company’s second-quarter earnings call on October 22 that further pricing action would be necessary if input costs remained elevated. The company expects the impact of earlier price increases to become more visible in the third and fourth quarters of the current financial year.

Further price hikes planned for December quarter

Havells’ proposed price increases will vary depending on the product category. According to Gupta, prices across several categories had already risen by 10–25% over the preceding 12 months, while cables and wires had recorded increases of more than 30%.

The company is considering additional increases of 5–7% as manufacturers respond to higher input costs. The timing and extent of the changes will depend on the category and the movement of raw material prices.

Price increases are an important way for manufacturers to pass on higher production costs to customers. However, companies must also consider whether consumers will continue purchasing products at higher prices, particularly in categories where demand is sensitive to affordability.

Havells is also working on cost efficiencies at its factories and across overheads to help protect profitability. Management expects pricing measures to support margins as the additional costs are gradually passed on to consumers.

Q2 revenue grows 34.6%

Havells India reported strong revenue growth in the July–September quarter of FY27. Revenue from operations increased 34.6% year-on-year to around ₹6,417 crore, compared with ₹4,767 crore in the corresponding quarter of the previous financial year.

Consolidated net profit rose 11.4% to ₹353 crore, according to the company’s Q2 earnings report published by NDTV Profit. The performance reflected growth across several businesses, particularly cables and wires.

Despite the increase in revenue and profit, profitability remained under pressure from input costs. The company’s EBITDA margin narrowed to 9% from 9.3% a year earlier, highlighting the challenge of absorbing higher costs even as sales expanded.

The results show that strong revenue growth does not necessarily translate into an equivalent improvement in margins when raw material expenses rise rapidly. Havells’ ability to pass on these costs through pricing will be important in the coming quarters.

Cables and wires lead business growth

The cables business was a major contributor to Havells’ performance during the quarter. Segment revenue rose approximately 48% year-on-year to ₹3,000 crore, supported by commodity-linked price increases and a shift towards larger-sized cables.

Segment earnings before interest and tax increased 9% to ₹304 crore. However, movements in aluminium prices affected contribution margins compared with the previous year’s base.

The electrical consumer durables business recorded revenue growth of 11% to ₹1,072 crore, while segment EBIT increased 34% to ₹67 crore.

Havells’ Lloyd consumer durables business reported revenue growth of 28% to ₹615 crore. However, the segment recorded a loss of ₹104 crore, compared with a loss of ₹99 crore in the year-ago quarter, indicating that profitability remains a challenge in this business.

The results highlight different operating conditions across Havells’ portfolio. Cables and wires are benefiting from strong value growth, while consumer durables face the task of balancing demand, input costs and pricing.

Lloyd margins remain under pressure

Lloyd, Havells’ consumer durables business, continues to face pressure from raw material inflation and seasonal under-absorption of costs. Some increases in input expenses have yet to be passed on to customers, affecting profitability.

Gupta indicated that pricing measures should begin to flow through the business in Q3 and continue into Q4. The extent of improvement will depend on the pace at which higher prices take effect and how demand responds.

The consumer durables market is also competitive, making it important for manufacturers to balance price increases with sales volumes. If products become significantly more expensive, some customers may postpone purchases or choose lower-priced alternatives.

Havells’ focus on cost efficiencies and pricing discipline will therefore be central to improving Lloyd’s performance during the second half of FY27.

Raw material inflation remains a key concern

Copper, aluminium and other industrial inputs are important cost components for electrical equipment manufacturers. Sharp price movements can affect production expenses, especially in cables and wires, where metal costs account for a substantial share of the final product value.

Earlier industry analysis highlighted increases in copper and aluminium prices as key risks to Havells’ margins. Passing these costs on gradually can protect sales volumes in the short term, but may delay the recovery in profitability.

The planned 5–7% price increases suggest that the company is preparing to respond further if cost pressures persist. The outcome will depend on commodity prices, competition and consumers’ willingness to absorb higher prices.

For customers, the increases could mean more expensive electrical products in the coming months. For Havells, the priority will be ensuring that pricing actions improve profitability without materially weakening demand.

Outlook for the second half of FY27

Havells has expressed optimism about demand during the festive season, while acknowledging uncertainty surrounding commodity prices. The company’s Q2 revenue growth provides a strong starting point, but the margin outlook remains dependent on how effectively it manages input costs.

Management expects price increases to support profitability in Q3 and Q4, alongside efforts to improve factory efficiency and control overheads. The planned capital expenditure for FY27 remains around ₹1,400 crore, with investment directed towards cables and wires capacity and research and development facilities.

The coming quarters will show whether Havells can sustain sales growth while recovering margins. Further price increases may help offset raw material inflation, but the balance between pricing, costs and demand will remain crucial to the company’s financial performance.