Havells Q1 Misses Estimates But SEBI RAs Remain ‘Cautiously Optimistic’ On Seasonal Rebound In H2

A breakout above ₹1,645 could lead to a medium-term rally, the analyst said.

Havells India posted a subdued first-quarter earnings report, with consolidated revenue falling over 6% to ₹5,438 crore, hurt by weak demand in the electrical consumer durables segment. Net profit declined to ₹347 crore from ₹407 crore last year.

Despite this, the shares were trading nearly 1% higher at ₹1,547.

Retail sentiment on Stocktwits also turned ‘bullish’ from ‘neutral’ a day earlier, amid ‘high’ message volumes. Havells was among the top 10 most trending stocks on the platform.

Weak Consumer Demand Weighs

Q1FY26 reflected the strain from a cooler summer and weakened consumer sentiment, noted SEBI-registered analyst Rajneesh Sharma, attributing the decline in net profit to the steep 34% fall in Lloyd Consumer sales. Lower volumes across cooling and lighting segments also hurt operating leverage, he added.

Long-term Prospects Remain Intact

Despite the weak consumer demand, Havells found strength in its cables segment, which increased by 27.1%, and the switchgear segment, which grew by 9.3%. The performance was supported by rising infrastructure and B2B demand. The company expects a seasonal rebound in Lloyd in H2FY26, supported by product mix improvements and festival-led demand.

SEBI-registered analyst Saurabh Sahu stated that, despite a soft quarter, Havells’ core fundamentals remain solid with a positive long-term outlook.

He highlighted the company’s strategic diversification, marked by its ₹600 crore investment in Goldi Solar, as a significant step toward expanding its renewable energy business.

Technical Outlook

Sharma sees Havells testing a key support zone near ₹1,478 within its long-term rising channel, which has been in place since mid-2021. After multiple rejections near the upper trendline at ₹1,785, the stock has retreated toward the channel’s mid-point resistance at ₹1,645, he noted.

Current price action near the lower support band suggests a potential rebound, especially since past setups from these levels have triggered strong recoveries. However, a breakdown below ₹1,380 could negate this bullish structure.

The analyst maintained a cautiously optimistic outlook for Havells, noting that while the short-term outlook appears neutral to mildly bullish, a breakout above ₹1,645 could confirm medium-term strength.

Year-to-date (YTD), the stock has declined 7.7%.

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