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Havells India’s margins slip as ad and promotion spend doubles in June quarter

In Q1FY27, EBITDA margin fell 230 basis points to 7.2% as advertising and sales promotion expenses rose to ₹286 crore.

Reported · Written up by our desk · India

Havells India reported nearly 20% year-on-year revenue growth in the June quarter, but profitability weakened, with EBITDA margin declining 230 basis points to 7.2%, according to LiveMint Markets. The company said its margin pressure was linked to aggressive brand-building, frontloading advertising and sales promotion expenses. Havells doubled A&P spending to ₹286 crore in the quarter, compared with roughly ₹600 crore across FY26, and management indicated A&P should normalize ahead.

Havells also pointed to pricing actions intended to offset raw material inflation. The firm has implemented staggered price hikes across segments, with an average increase of 7% to 8%, and higher up to 20% in categories with greater copper and aluminium content, which it expects will support earnings growth.

Segment details showed cables revenue rising 27% year-on-year to ₹2,455 crore, while the newly carved-out renewables business grew 236% to ₹314 crore on a low base. LiveMint Markets also noted switchgear revenue fell 4% as exports were disrupted by the war in West Asia, and lighting and fixtures grew 4.5% to ₹390 crore, while Lloyd grew 15% but remained loss-making.

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