Havells Falls 7% on Q3 Miss; Aarti Surfactants Surges 20% on Profit Boom

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AuthorIshaan Verma|Published at:
Havells Falls 7% on Q3 Miss; Aarti Surfactants Surges 20% on Profit Boom
Overview

Havells India shares plunged over 7% on January 20, after its third-quarter earnings missed analyst expectations. The consumer electricals firm reported a marginal year-on-year profit increase but a sequential decline. In contrast, Aarti Surfactants surged 20% on a substantial 358% profit growth, while Tips Music advanced 3% following a 37% rise in net profit.

Havells India's stock price fell sharply on January 20, shedding over 7 percent to close at Rs 1,344.90. The decline followed the company's October-December quarter results for FY26, which missed some investor expectations. While standalone net profit rose approximately 7 percent year-on-year to Rs 301.36 crore, it marked a 5 percent sequential decrease from the previous quarter. Revenue from operations showed a healthier 14 percent year-on-year increase, reaching Rs 5,573.44 crore. The company also announced an interim dividend of Rs 4 per equity share, with a record date set for January 23.

Analyst Reactions to Havells

Brokerage firms offered a divided outlook on Havells India. Motilal Oswal reiterated a 'Neutral' rating with a price target of Rs 1,590, noting that the Q3 results fell below their estimates and margins remained under pressure across key segments like Cables & Wires, Lloyd, and the cable division. JM Financial maintained its 'BUY' recommendation and an unchanged target of Rs 1,750, despite adjusted profit being slightly below their projections, primarily due to stronger-than-expected revenue. Nomura kept a 'Buy' call with a target of Rs 1,798, while Jefferies issued a 'Hold' rating with a target of Rs 1,555, acknowledging robust growth in cables and wires that compensated for weakness in Lloyd and lighting segments.

Aarti Surfactants and Tips Music Shine

In stark contrast, Aarti Surfactants saw its shares jump 20 percent to hit the upper circuit at Rs 459.10. This surge was fueled by a remarkable 358 percent year-on-year increase in net profit to Rs 3.66 crore for Q3 FY26, alongside a 28 percent rise in revenue to Rs 207.79 crore. Tips Music's stock also performed well, gaining over 3 percent to Rs 536.10. The music company reported a 37 percent year-on-year net profit jump to Rs 58.66 crore, with revenue climbing more than 21 percent to Rs 94.29 crore.

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