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Crompton Greaves targets 13-14% revenue CAGR through new categories
At its investor day, the company projected EBITDA margin improvement to 11-12% by FY29 from 10.2% in FY26.
Crompton Greaves Consumer Electricals is outlining a growth push that combines premiumization with expansion into new product categories, aiming for 13-14% compound annual revenue growth over FY26-29. The company also plans to scale new offerings to move beyond its core portfolio.
At its recent Investor Day, management said EBITDA margin is expected to rise to 11-12% by FY29, compared with 10.2% in FY26, supported by new product development-led growth, distribution increases, and operational efficiencies. The company cited higher NPD contribution across areas such as fans, large domestic appliances, pumps, and business-to-business lighting, along with NPD intensity rising to 211 product launches in FY26 versus 165 in FY24.
The company said it is expanding its total addressable market to ₹1.6 trillion through new categories including wires, solar products, and water purifiers, up from ₹80,000 crore. It expects revenue from these new businesses to grow at 14-15% over the next three years, then rise to around 20% by FY31, adding diversification and reducing reliance on weather-related demand.
Potential margin pressure is a key risk in the plan, with PL Capital cautioning that entry into lower EBITDA margin product categories could make Crompton’s 12% plus EBITDA margin target by FY31 harder to achieve. The company also guided for annual capex of around ₹120 crore excluding greenfield capex, and it noted research and development spend rose to about 1.1% of sales in FY26 from about 0.4% in FY22/23, according to Nomura Research.