Havells, Polycab flip the switch on high-voltage growth potential

Margin constraints could trip up earnings performance

- RAM PRASAD SAHU

The July-September quarter (Q2) results for 2024-25 (FY25) from the largest listed consumer electrical solutions companies, Havells India and Polycab India, followed similar trends, demonstrating robust revenue growth while falling short of profitability expectations.

Both companies witnessed overall growth in the 16-30 per cent range, but margins declined by 130-290 basis points (bps) year-on-year (Y-o-Y). Although brokerages are bullish on long-term prospects and have raised revenue projections, earnings forecasts have been revised downward due to margin pressures.

The cable and wire (C&W) business remains the core growth driver for both companies. For Havells, this segment, which accounts for 40 per cent of revenues, reported a growth of 23 per cent Y-o-Y. Polycab, the market leader in the organised C&W segment in India with a share of 25-26 per cent, reported a 24 per cent increase compared to the year-ago quarter. The C&W segment constitutes 85 per cent of the company's overall revenues.