Havells’ ad-to-revenue ratio drops to 2% as Q2 sales grow 35%

Havells India spent ₹136 crore on advertising and sales promotion during the quarter ended September 30, 2026, compared with ₹131 crore in the corresponding period last year. Revenue increased from ₹4,767 crore to ₹6,417 crore over the same period, taking the advertising-to-revenue ratio down to 2.1% from 2.7%.

The company’s revenue grew by ₹1,650 crore year-on-year, while advertising expenditure rose by just ₹5 crore. Sequentially, the expense declined from ₹286 crore in Q1 FY27, when it represented 4.4% of revenue.

EBITDA increased 30.5% year-on-year to ₹576 crore from ₹442 crore, although the EBITDA margin narrowed to 9% from 9.3%. Profit after tax stood at ₹353 crore, profit before tax rose 15.1% to ₹476 crore from ₹414 crore, and cash and cash equivalents totalled ₹1,190 crore.

Cables remained Havells’ largest business by revenue, generating ₹2,999 crore, up 47.9% from ₹2,028 crore a year earlier. The company attributed the increase to commodity-linked price hikes and a shift towards higher-sized cables. Switchgear revenue grew 31.3% to ₹782 crore from ₹595 crore, supported by stronger domestic demand and a recovery in exports following disruptions in the previous quarter.

Renewables recorded the fastest growth among the reported businesses, with revenue surging 147.8% to ₹329 crore from ₹133 crore. Electrical consumer durables revenue increased 10.7% to ₹1,072 crore, while lighting and fixtures grew 7% to ₹449 crore, aided by higher volumes and price stabilisation. Revenue from the others category rose 19.3% to ₹171 crore. Together, these five segments generated ₹5,802 crore, up 35.3% year-on-year.

Lloyd Consumer, Havells’ consumer durables business, reported revenue of ₹615 crore, a 28.4% increase from ₹479 crore in Q2 FY26. The company also reported growth across its electrical consumer durables business.

On a sequential basis, net revenue declined 1.4% from ₹6,510 crore in Q1 FY27 to ₹6,417 crore in Q2 FY27. Advertising and sales promotion expenses fell from ₹286 crore to ₹136 crore over the same period. The contribution margin stood at 18.2% of net revenue, compared with 20.1% in Q2 FY26 and 18.3% in the preceding quarter.

Other selling, general and administrative expenses increased to ₹582 crore from ₹491 crore a year earlier, while depreciation and amortisation rose to ₹128 crore from ₹105 crore.