Stock Market Strategy : Havells India Shares Fall 6%, After Q2 Results: Check What Experts Say!
Havells India shares dropped nearly 6% to a fresh 52-week low of ₹1,002.80 on October 23, 2026, despite strong Q2 FY27 revenue growth. Rising raw material costs, weak profit margins and continued losses in the Lloyd business have worried investors in the Indian stock market. Brokerage Nomura also reduced its target price, raising concerns about the stock's near-term outlook.
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Why Are Havells Shares Falling?
Havells reported strong sales growth, but higher costs and increasing competition affected profitability.
- Strong Revenue Growth: Revenue jumped 34.6% to ₹6,432 crore, while net profit increased nearly 10% to ₹349 crore.
- Margin Pressure: EBITDA margin declined to 8.9% from 9.2% due to higher raw material costs.
- Cables and Wires: Revenue increased nearly 48% to ₹2,999 crore, but margins weakened due to aluminium price fluctuations.
- Lloyd Business Losses: Lloyd reported an operating loss of ₹105 crore despite 28.5% revenue growth.
- Growing Competition: New competitors, including Ultravolt, are creating additional pressure in the cables and wires market.
What Are Brokerages Saying?
Nomura reduced its Havells target price from ₹1,361 to ₹1,232, maintaining a Neutral rating due to concerns about margin recovery.
Other brokerages shared different views:
- Nuvama: Buy rating, target ₹1,430.
- HSBC: Buy rating, target ₹1,400.
- Jefferies: Hold rating, target ₹1,220.
Havells may also increase product prices by another 5–7% to manage rising costs.
What Should Investors Watch?
For Short-Term Traders: Havells' sharp decline and fresh 52-week low suggest continued volatility. Traders should monitor price movements, trading volumes and signs of stability before making decisions.
For Long-Term Investors: Focus on margin recovery, Lloyd's losses, cable business competition and future earnings growth. Strong stock market strategies require understanding company performance, valuation and risks rather than reacting only to price declines.
Conclusion
Havells India's strong revenue growth shows healthy business demand, but rising costs and weak margins remain major concerns. The company's ability to improve profitability, reduce Lloyd's losses and manage competition will be important for future performance. In the Indian stock market, investors should focus on financial performance, market trends and proper risk management before making investment decisions.
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