12 hours ago
Share of Crompton Greaves Consumer Electricals Ltd. are trading with gains of over 7% on Friday, May 16, after the company reported a strong set of numbers during the fourth quarter of the financial year 2025.
Crompton Greaves topline and bottomline surged 5% and 22.5% for the quarter. EBITDA rose 30%, while margin expanded by 240 basis points to 12.8% from 10.4% last year.
Brokerage firm Nuvama Institutional Equities wrote in its note that Crompton Greaves has entered the solar rooftop market (a ₹20,000 crore total addressable market, accounting for 20–22% of its existing TAM). Nuvama believes it will be a long-term opportunity and margin accretive.
Crompton is also planning a greenfield facility with a ₹350 crore investment over the next 2–3 years, starting with fan manufacturing in phase one, and expanding to other product categories later.
The brokerage has retained its FY26 and FY27 earnings per share estimates and believes these steps are in the right direction. Given the tough macros, Crompton's performance has been reasonable, it said, while maintaining a 'Buy' rating and an unchanged price target of ₹460.
Nomura has a ‘Buy’ rating on Crompton Greaves Consumer Electricals, citing the company’s efforts to drive growth across multiple fronts. It has set a price target of ₹444 per share.
The company’s Q4 EBITDA exceeded consensus estimates, with a clear focus on new product launches.
Nomura believes that new categories will sustain growth momentum, and is maintaining its EBITDA margin estimates at 11.9% for FY26F and 12.2% for FY27F, anticipating a stronger growth push.
JM Financial has maintained a ‘Buy’ rating on Crompton Greaves Consumer Electricals, with a revised price target of ₹420, down from ₹440 earlier.
The brokerage has trimmed its EPS estimates by 4% for both FY26 and FY27, citing delayed summer conditions, which could impact the Electrical Consumer Durables (ECD) segment in FY26.
The ECD segment revenue grew by 6%, led by strong performance in pumps, especially solar pumps, and healthy growth in the appliances division. However, fans posted muted growth due to unfavourable weather, though they are expected to perform better going forward, supported by demand for non-ceiling fans, premium induction ceiling fans, and air circulators.
The Butterfly segment sustained profitability with an EBIT margin of 6.7% for the quarter, and it is expected to remain on this trajectory.
Management remains optimistic about fan demand, backed by its technological edge.
Separately, ICICI Securities has also retained its ‘Buy’ rating, but lowered its price target to ₹420 from ₹440, citing concerns that unseasonal rains across India could lead to a muted Q1FY26, despite strong growth in appliances, particularly air coolers.
Shares of Crompton Greaves Consumer Electricals Ltd. are currently trading 7.03% higher at ₹350.40.
