CGCrompton Greaves Consumer Electricals539876Earnings call transcript

Q2 FY27 call: revenue up 18.2% YoY, EBITDA margin at 9%; Kusum 2.0 expected to lift solar pumps

Q2 FY27 earnings call transcript: revenue Rs.2,263 Crores, up 18.2% YoY; EBITDA Rs.205 Crores, up 24.1%, margin 9%; PBT excluding exceptional items up 36.2%.

By ScoutQuest · Sat 24 Oct 2026, 5:23 PM IST · 3 min read

Revenue

Rs.2,263 Crores, up 18.2% YoY

EBITDA

Rs.205 Crores, up 24.1%, margin 9%

PBT excluding exceptional items

up 36.2%

Quarter in numbers

• Consolidated revenue of Rs.2,263 Crores, up 18.2% year on year
• EBITDA of Rs.205 Crores, up 24.1% year on year, with margin at 9%, higher by 40 basis points
• PBT excluding exceptional items up 36.2%
• PAT growth of 65% was faster than PBT, but the management said this is not strictly comparable: Q2 FY26 carried an exceptional item of Rs.20 Crores towards Baroda plant restructuring. PBT excluding exceptional items is the comparable measure.
• PAT margins expanded by 160 basis points
• This was the third consecutive quarter of double-digit revenue growth, with growth across all business segments

Segment performance

• ECD: 19.4% year-on-year growth, with EBIT margin improving to 11.6%
• Fans: double-digit growth; BLDC fans grew 40%, helped by portfolio changes and better reach, especially in general trade
• Pumps: conventional pumps (residential, agri, specialty) grew double digits. Solar pumps slowed as order inflow from Kusum 1.1 tapered as that phase nears completion.
• Appliances: large domestic appliances grew double digits, led by water heaters, with market share gains. Small domestic appliances grew in excess of 20%, led by air fryers, induction cooktops and mixer grinders.
• Lighting: revenue of Rs. 298 Crores, up 14.3% year on year, led by ceiling lights and the outdoor range in B2C. EBIT was 12.9%, lower than last year, mainly because the B2B business was impacted by pre-contracted orders.
• Butterfly: 15.9% year-on-year growth, after excluding an in-house sale of mixer grinders that was in the base last year

Channels and costs

• General trade and rural trade both delivered double-digit growth
• E-commerce was subdued, reflecting deliberate work to reposition the go-to-market in that channel for better channel profitability
• The industry faces commodity cost pressures and unpredictable geopolitical developments; the company said it is addressing these through strategic price increases and Unnati cost savings, alongside operating leverage

Outlook and guidance

• Management said it is very well on track for its medium-term guidance, entering the second half with momentum and a leaner cost structure
• Solar pumps are expected to pick up in the next quarter with the government having announced Kusum 2.0, and the business is expected to ramp up in the coming quarters
• Exports grew more than 70% and recorded the highest ever quarterly revenues; the momentum is expected to continue, with international business seen as a significant opportunity over the next couple of years
• Evaluation of a greenfield manufacturing plant is in advanced stages, which is expected to raise manufacturing capabilities in fans, appliances and wires

New businesses

• LKA and Rhion are now both led by the Chief Business Officer of Butterfly and will use the broader Butterfly ecosystem; this is expected to materially reduce the overall cost structure and drive profitability in that segment
• More than 50% of the solar pump order book with the AP government has been executed
• The B2C and commercial and industrial solar rooftop business has commenced in six states
• The wires business, launched in South India in Q1 FY27, has been extended to Punjab, Delhi NCR and Gujarat

Innovation and brand

• A refreshed brand identity, including a new monogram, was launched in August 2026
• The innovation agenda is built on design-led innovation, technology forward, and smart and connected products

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