Havells India Share Price Slips 5% Despite Strong Q4 Results – Here’s Why

Market Performance

On April 23, Havells India's share price fell sharply by 5%, touching an intraday low of ₹1,583.40. The unexpected drop came even as the company reported strong Q4 and FY25 results, surprising many market watchers.

Investor sentiment took a hit due to management's conservative outlook on cooling product demand, especially in South India, where a mild summer start impacts room air conditioner (RAC) sales.

Main News

Despite beating Street expectations in Q4, Havells India issued a cautious forecast that weighed heavily on its stock performance. Here are the key reasons behind the price correction:

• Cooling product demand, especially air conditioners, is weak due to the mild onset of summer in South India.
• Secondary sales of RACs in March and April dropped, raising concerns for Q1FY26 performance.
• Management indicated muted consumer sentiment amid inflationary pressures.

Although concerns loom, demand continues to be strong in Western and Central India, offering some cushion to the company's overall performance outlook.

Company Details

Havells India Ltd., a leading name in the Fast-Moving Electrical Goods (FMEG) sector, is navigating a seasonally tricky quarter. Its subsidiary, Lloyd, witnessed good channel momentum in Q4FY25 due to a soft base and early quarter optimism.

Looking ahead, Havells expects challenges in the cooling segment but remains committed to growth investments, particularly in regions unaffected by the cooler southern climate.

Financial Performance Overview

Revenue

• Q4FY25 Revenue: ₹6,543.56 crore
• Q4FY24 Revenue: ₹5,442.02 crore
• YoY growth: 20.24%
• FY25 Revenue: ₹22,081.33 crore
• FY24 Revenue: ₹18,838.97 crore
• YoY growth: 17.21%

Net Profit

• Q4FY25 Net Profit: ₹517 crore
• YoY growth: 15.73%
• FY25 Net Profit: ₹1,470.24 crore
• FY24 Net Profit: ₹1,270.76 crore
• YoY growth: 15.7%

Summary

While Havells India's share price fell notably despite impressive quarterly numbers, the drop was driven more by forward-looking concerns than past performance. The muted demand for cooling products, particularly in the southern regions, and conservative management commentary are holding back the stock's momentum.

Continued investments and strong regional performance in the West and Central zones may offset some of the near-term headwinds. Investors and market watchers will closely track Q1 developments as the summer progresses across India.