Crompton Greaves Consumer Electricals reported 18.2% second-quarter revenue growth as strong demand for energy-efficient fans, pumps and appliances offset commodity inflation and weaker e-commerce sales.
Crompton Greaves Consumer Electricals delivered a strong second quarter, with revenue rising 18.2% from a year earlier to ₹2,263.29 crore as price increases and broad-based demand offset a difficult cost backdrop. The company also said exports reached a quarterly record, jumping 70% year on year, underscoring the strength of its overseas business even as commodity inflation continued to weigh on margins.
The clearest engine of growth remained the electrical consumer durables division, which makes up about four-fifths of sales and grew 19.2% in the period. That performance was driven by a 40% rise in brushless direct current fans, double-digit gains in residential, agricultural and speciality pumps, and more than 20% growth in small domestic appliances such as induction cooktops, air fryers and mixer grinders. Crompton said gains in BLDC fans reflected portfolio changes, better distribution and consumer demand for energy-efficient products, while water heaters took share and solar pump sales stayed subdued because of weaker PM-KUSUM order inflows.
The lighting business also improved, with revenue up 14.3% thanks to ceiling lights and outdoor lighting in the consumer market, as well as industrial and indoor commercial products. Butterfly Gandhimathi, the acquired kitchen appliances unit, posted 16.6% growth, helped by pressure cookers, induction cooktops, mixer grinders and electric rice cookers, while also making share gains in several categories. Management said general trade and rural trade both posted double-digit growth, even though e-commerce remained soft.
Profitability told a more mixed story. Gross margin fell 180 basis points to 29.8% because of input cost inflation, although Crompton passed on much of that pressure through price hikes of 11% to 16% across categories in the first half of the financial year. That helped the company lift its Ebitda margin by 40 basis points to 9%, supported by cost savings and operating leverage. Sanjeev Kumar Singh of Motilal Oswal Research said the company’s refreshed brand positioning, improving product mix and cost discipline should aid long-term growth, while Siddhartha Bera of Nomura Research said progress in wires, solar and kitchen appliances could support further upside if execution holds. Motilal kept a buy rating with a target price of ₹300, while Elara Research cut its earnings estimates for FY27 to FY29 and trimmed its target to ₹325, citing inflation pressure and a heavier mix of lower-margin solar products. At ₹208.9, the stock trades at just under 20 times estimated FY28 earnings.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
