India’s cables and wires industry has emerged as one of the strongest themes in the market, driven by rising investments in power transmission, real estate, solar energy, data centres, railways and industrial infrastructure.
While investors have aggressively bid up stocks such as Polycab India and KEI Industries, Havells India has remained relatively out of favour. The stock currently trades at around ₹1,165-1,200 with a price-to-earnings multiple of 43.6 times, nearly 45 percent below its September 2024 highs.
By comparison, Polycab trades at 60.4 times earnings, while KEI Industries trades at 58.6 times earnings.
The contrast has raised a question among investors: has the market overlooked Havells’ cable business?
A Diversified Business Structure
Unlike Polycab and KEI, Havells is not a pure-play cable manufacturer. The company operates across several segments, including:
- Switchgears
- Cables
- Lighting
- Electrical consumer durables
- Renewables
- Lloyd consumer appliances
This diversification has helped build scale but has also complicated the investment story.
For FY26, Havells reported:
- Revenue of ₹22,466 crore, up from ₹21,746 crore in FY25.
- EBITDA of ₹2,213 crore, compared with ₹2,149 crore a year earlier.
- Profit after tax of ₹1,705 crore, up 14.5% from ₹1,489 crore.
However, the headline numbers mask contrasting performances across businesses.
Cable Business Emerges as the Largest Segment
The standout performer during FY26 was the cables division.
Segment revenue increased to ₹8,677 crore from ₹7,184 crore in FY25, representing growth of 20.8 percent.
Segment profit rose from ₹772 crore to ₹1,138 crore, while margins expanded from 10.7 percent to 13.1 percent.
This made cables the largest revenue contributor for Havells.
Throughout FY26, management highlighted strong demand driven by industrial and infrastructure projects.
Growth Momentum Continued Through the Year
- In Q1FY26, management cited strong infrastructure and industrial demand and announced additional capex of over ₹340 crore.
- In Q2FY26, the company acquired 39 acres adjoining its Alwar facility in Rajasthan to support expansion.
- In Q3FY26, cable growth was supported by higher volumes and commodity price inflation.
- In Q4FY26, cable revenue rose 14 percent year-on-year to ₹2,474 crore.
Management said industrial cables outperformed domestic wires during the quarter, while domestic wires experienced some destocking.
Capacity Expansion Underway
Havells is significantly expanding its cable operations.
Management said:
- Underground cable capacity will be doubled between FY24 and FY27.
- Demand is not the issue; capacity availability is the constraint.
- Investments are increasingly focused on medium-voltage and high-voltage cables.
These categories are closely linked to:
- Power distribution projects.
- Industrial infrastructure.
- Electrification programs.
The company is also seeing increasing export demand for underground cables.
Lloyd Appliances Continue to Weigh on Sentiment
While cables delivered strong growth, the Lloyd consumer business had a difficult year.
Weak summer demand, elevated inventory levels and lower production affected cooling products.
FY26 revenue from Lloyd declined to ₹3,948 crore from ₹5,123 crore, a drop of 22.9 percent.
The segment recorded a loss of ₹203 crore, compared with a profit of ₹131 crore in FY25.
During Q4FY26:
- Lloyd revenue fell 19 percent year-on-year to ₹1,514 crore.
Management attributed the decline to delayed summer conditions and a high base.
The weakness in Lloyd has led many investors to view Havells primarily as a consumer appliance company rather than as a beneficiary of the cable cycle.
Management Seeks a Turnaround at Lloyd
The company has commissioned a new refrigerator plant at Ghiloth and launched refreshed products.
Management aims to transform Lloyd into a broader home appliances platform rather than relying heavily on seasonal air-conditioner demand.
A reduction in losses and growth in non-seasonal categories could improve overall sentiment toward the company.
Renewables Add Another Growth Avenue
Havells is also increasing its exposure to renewable energy.
In Q1FY26, the company invested ₹600 crore in Goldi Solar to strengthen its solar portfolio.
Management said the partnership could also support demand for:
- Cables
- Switchgears
- Electrical products
The “Others” segment, which includes renewables, reported:
- Revenue of ₹1,727 crore in FY26, up from ₹1,379 crore in FY25, representing growth of 25.2 percent.
- Q4FY26 growth of 48.8 percent year-on-year.
The company also booked a fair-value gain of ₹283 crore on its investment in Goldi Solar during Q4FY26.
Outlook
Investors have largely rewarded pure-play cable companies because their growth stories are more straightforward.
Havells, however, presents a more diversified profile.
Its cable business has become a major earnings driver, margins are improving, capacity expansion is underway, and renewable energy investments provide additional opportunities.
At the same time, weakness in Lloyd and increased competition in the cables and wires sector remain key risks.
Whether the market has underestimated Havells may ultimately depend on three factors:
- Continued growth in cables.
- Scaling of renewable energy-related businesses.
- Improvement in Lloyd’s profitability.
About the Company
Havells India Ltd is an electrical equipment and consumer products company with operations spanning cables, switchgears, lighting, appliances, consumer durables and renewable energy solutions.
TL;DR
Havells’ cable business grew 21% in FY26 and margins improved, but losses in Lloyd consumer appliances have weighed on sentiment. As the company expands cable capacity and increases its renewable energy exposure, investors are debating whether the stock has been overlooked compared with Polycab and KEI.
AI Summary
- Havells’ cable revenue grew 20.8% to ₹8,677 crore in FY26.
- Segment margins improved from 10.7% to 13.1%.
- Underground cable capacity is set to double by FY27.
- Lloyd consumer business posted a ₹203 crore loss.
- Renewables and cable expansion could support future growth.
