Crompton Greaves Consumer Electricals Limited (NSE: CROMPTON) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Unidentified Speaker
Promeet Ghosh — Managing Director and CEO
Analysts:
Unidentified Participant
Manoj. — Analyst
Praveen Sahai. — Analyst
Rachna, — Analyst
Himanshi Narang. — Analyst
Presentation:
operator
Miss Shweta Sagar, Chief Business Officer, Butterfly Gandhimati. Ms. Natasha Kedia, Head Investor Relations and Corporate Communications. Mr. Rajat Chopra, Business Head, Home Electricals and Mr. Charlene Nayak, Business Head, Lighting, solar, rooftop and wires. Thank you so much. And I open. I mean I’d request the management to give the opening remarks. Thanks.
Promeet Ghosh — Managing Director and CEO
Thank you very much. Thank you everyone for joining and good evening. Welcome to this earnings call. As you’ve already know, Charlene, Rajat and Natasha are with me here. I will make some initial remarks and then we can follow that up with Q a. Throughout Crompton’s 85 plus year history, as you are aware, we have deliberately entered categories where we can build meaningful leadership through scale, distribution and a trusted brand. Our track record, from fans and pumps to lighting, appliances, kitchen and now solar shows that focused plans plus disciplined execution, leveraging our strengths coupled with strong unit economics and thoughtful capital allocation delivers results.
Today I’m delighted to announce another important strategic step. Crompton is launching a range of residential wires. This is a large and attractive market. There is clear adjacency with many of our products and we have a strong right to win in this market. We will leverage Crompton’s brand equity, Pan India distribution and deep dealer relationships to pursue meaningful scale and leadership. This expansion materially increases our addressable market, enables us to become an end to end home solution player and supports our long term objective of delivering sustainable shareholder value. These products will become available to consumers in select markets in the next six to seven weeks.
On another front, one of the big activities and events for our business has been the B2 transition in our ceiling fans category. This was effective 1st of January 2026 and was a major industry inflection point. We transitioned seamlessly as the world’s number one ceiling fans brand. Managing this technology shift at scale required decisive cross functional execution. Our two part approach comprised responsibly managing and liquidating legacy one star inventory and ensuring future readiness through targeted engineering and R D. We delivered this smoothly, seamlessly and I am delighted to say with no hiccups.
Promeet Ghosh — Managing Director and CEO
Sorry to interrupt you. Yeah, speak up.
Promeet Ghosh — Managing Director and CEO
We’re getting pick up more. Okay. All right. Okay guys, sorry. I’ve got a graph voice so you know you may not be able to understand everything I say. You can always ask later on. Okay.
Promeet Ghosh — Managing Director and CEO
All right. Moving on to financial performance. Beginning with the Q3 performance sequentially we have witnessed strong improvement quarter on quarter. Consolidated revenue was 1898 crores. EBITDA grew 18.5%. QoQ and EBITDA margin expanded to 10.3%. This recovery was led by volume and margin improvement in ECD complemented by continued industry leading margins in lighting. We continue to gain share across categories. Our progress in BLDC fans is particularly encouraging. We are also now the second largest water heater brand in GT nationally. Along with this encouraging sequential trajectory, a year on year growth has also witnessed positive traction. Revenue grew about 7% driven by ECD growth about 8% and lighting growth about 7%.
YoY. ECD performance was led by strong solar pump execution, volume growth in LDA and improvement continued improvement I dare say. In sda. Lighting growth was supported by ceiling lights and accessories together with new product launches Commodity Cost this is something you hear very often in the consumer durables business. Now over the last quarter commodity cost inflation persisted. Pricing actions were taken during the quarter and we expect that further actions to defray cost increases will continue to be taken going forward. We anticipate this and for a while we anticipated the commodity cost increases and for a while now we have been qualifying alternate raw materials without compromising quality and continue to offer industry leading warranties in our products.
We calibrated brand investments due to seasonality, maintained tight cost discipline and strong execution across channels. PBT prior to exceptional items was 156 crores this quarter with a margin with a margin of 8.2%. Butterfly delivered a steady revenue of 245 crores with a growth of 3%. YOY led by premiumization in gas stoves and GST driven demand for cookers. Both of these areas registered double digit growth. EBITDA margin, an area that we have been focusing on for some time, expanded by nearly 100 basis points YoY to 8.2%. This was aided by gross margin improvement and cost optimization.
Overall, the net profit of butterfly grew 44% yoy this quarter. We remain confident of our ability to scale the businesses that we are entering while delivering resilient performance in all our core categories. I now open the floor to Q and A and as is required, I’ll ask my colleagues around the table to step in and answer questions that might arise. I’m hoping that this one page readout addresses all your questions, but nevertheless we remain open.
Questions and Answers:
operator
Sure. Thanks for the opening remarks. Anyone who wishes to ask a question may use the raise hand function and we’ll put you on board. Request you to restrict your questions to two per participants. We’ll wait for a moment till the question queue assembles.
Unidentified Participant
Lots of hands up here. Make myself clear? I think. So. We’ll take the first one second. Yes folks. Leading the first question from Aditya Bhartia. Aditya, you can go ahead with your question. Hi, good evening sir. My first question is on the wires business. Just want to understand what’s going to be our procurement strategy around that. Are we going to manufacture or are we going to procure it from third parties? What kind of capex and opex costs this, this business may entail and how we looking at sales ramping up. What are some of the initial targets that we have set for the team?
Promeet Ghosh
Yeah Aditya, this is a business that we are currently beginning on the basis of outsourced product. As you are aware we do a fairly good job of outsourcing our products. But we’ve spent the last six to nine months Frank doing a bunch of work on the go to market as well as the supply chain. What you should expect to see is that by the way I didn’t announce that we entered the wires and business. I announced the launch of those products. So you can imagine there’s a slight difference. The products are ready and we expect that in select markets near full range of wires, of residential wires will become available in the next six, seven weeks.
I don’t want to actually talk about what kind of revenues we expect. That’s a forward looking statement. But we do expect that this is a very large business. About 36, 37,000 crores where we have a right to win. And over a period of time I would expect us to get a. A fair share if not a leadership shares in the, in the near to medium term.
Unidentified Participant
Understood sir. My second question is on the solar rooftop business wherein we had won some reasonably large size tenders. Just want to understand the progress around that. Have we started kind of recognizing some revenues from that and if not then can we expect something to be starting from fourth quarter?
Unidentified Participant
We have actually started recognizing revenues and we have I think order of magnitude about 18, 19 crores that we booked in the solar business last quarter. And yeah, we expect the tempo to keep ramping up in the coming quarters. Again we didn’t come. We as you might imagine we announced our entry into the market after some work had been done. And that’s why you are being able to see us start to book revenues from the get go.
Promeet Ghosh
Sure. And. And it’s from the state tender order only or is it from, from direct sales to consumers? Currently it is from the state tender orders B2B orders. And this quarter I am expecting that the other direct to consumers will also kick in.
Unidentified Participant
Yeah, perfect. That’s great to Hear. And one last question if I may. You guys, you should ask one question. Yeah, there are lots of people on the line. Perfect, Perfect. I’ll come back in the queue. Thank you.
operator
Thanks. We’ll take the next question from Siddhartha Bera. Siddharth, you may unmute your line and go ahead.
Unidentified Participant
Thanks for the opportunity. Sir. Sir, first question on again. On this wire and cable side, will it be limited to wires or do you at some point also plan to enter into cables and by how, by when should we expect full pan India sort of launch of the wires and would we also look to target the institutional clients or it will be only limited to the retail network which we have.
Promeet Ghosh
I, I don’t know if you, if you’re asking about eight second up. Yeah. So we are currently entering residential wires which is the overwhelming majority of the market we remain. Obviously cables will be an area that we’ll potentially keep looking to evaluate and enter as we go along. Currently, as I said, we are going to be available in limited markets. Over a period of time. We’ll become available and India like our other products are.
Unidentified Participant
Got it, sir. And on the solar side, sir, on the pump side, can you also highlight the revenues and any order book? Because I could not find that in the presentation.
Unidentified Participant
And Siddharth, as you know, we don’t disclose that specifically. Allow us to skip that. I think our order book is robust as and when we’re getting an order book, we do make a SE announcement around it and that execution is ongoing. Okay. I, I think it’s fair to say that our solar pumps business has in the last quarter also more than doubled year. Right?
Promeet Ghosh
We double the revenue. Yeah, to be fair, more than double the revenue. But I mean that’s, that’s the limit of the guidance that we, we are, we give. Got it, sir. So last question on the cost side.
Unidentified Participant
You mentioned, can we limit our questions? Guys, you know, okay, if you don’t mind, if you don’t mind. Siddharth, I know you can always touch base with Natasha if your questions don’t get addressed. But I am, I am cognizant that there are a large number of people who are also waiting. Sure, sir. Thanks.
operator
Next question is from Umang Mehta. Umang, request you to restrict yourself to one question.
Unidentified Participant
Okay, sure. So the only question I wanted to ask was on water heaters. So sometime back, you know, management had highlighted that we were number one on Ecom, but number five or six on gt. Just wanted to check, have you gained significant market share in that particular space in Water heaters. I am now delighted to say that we are number two by market shares in in gt. So yeah, we wanted to ramp up our presence in GT and that’s what’s been happening over the last couple of quarters. Sure. I have a few questions. I’ll come back in the queue. Thanks.
operator
Thanks. It’s okay to ask two questions but I would request that people don’t go beyond that.
Unidentified Participant
Okay, just one more. On wires front, could you share some color on a strategy that you are going to kind of deploy in terms of whatever you can share on pricing or influencer engagement, distribution. Some more insights would be really helpful.
Promeet Ghosh
Like we announced tech with heart and we had a meeting with. Freight Note is doing pretty well on bldc. Similar to that, we will have an engagement on which we will have analyst and press meet where we will talk about the product range and what are we differentiating with. And that’s pretty short term. It’s a matter of few weeks in which we’ll hear it. Strategically we are entering in because there is a right to win. We have a go to market that the brand is very, very strong. And as you know Crompton, whenever we enter into a category it’s to approach towards a leadership.
And this is in line with that. And that’s what we are going to do in wires also.
Unidentified Participant
Sure. Thank you so much.
Unidentified Participant
Tongue and cheek. I can tell you. Crompton has been selling several, you know, order of magnitude a lot of buyers in the market. But only thing, Crompton Greaves did not sell them. Right. So now going to sell Compton is going to sell by itself. You know what I mean?
Promeet Ghosh
Yes, yes I do. I’m aware about that. Wish you all the best. Thanks.
Unidentified Participant
Thank you. Thank you. But this is a direct to market as you might imagine. So we’ve identified the channel and channel partners and select markets where we are first going to start and then ramp up from there.
operator
Thanks. The next question is from Anirudh Joshi. Hi.
Unidentified Participant
Hi sir. Hi. Thanks. Thanks for the opportunity. Sir. In terms of fans, just a strategic question now the price hikes in induction fans will be far higher than the price hikes in BLDC fans. So do you see? Probably the category of induction fan may in a way phase out in like for five, six years like CRT televisions or in a way the very basic light will that automatically lead to premiumization category as well as Crompton also? So that is one question and then second and last question is we are entering various categories like mobile accessories, cable wire, solar, rooftops.
And like obviously fans etc is already there. So the distribution network overlap will be very minimal. Like mobile accessories would be largely E Com category. So how do you see synergies between all all these products working out? Yeah, that’s it from my side.
Unidentified Participant
Okay, first question about, about induction motors and BLDC motors. It is not. I firstly I don’t necessarily agree with you. The kind of cost increases in induction motors depends on the technology and the work that you’re doing on the inside. And, and as Kalish actually briefly mentioned, this is something that we’ve been working on not just today but for the last one one and a half years. So I do not think that induction motor will necessarily get priced out in this market if anything. And there are advantages in B.C. and those necessarily don’t overlap. You know, for instance induction motor fan, the kind of air delivery that it can deliver cannot be met by any other technology and not now and not for some time to come.
Promeet Ghosh
Right. So in fact induction motor particularly for you know, players like us, remember we are not the largest induction motor fan company in India. We are the largest ceiling fan company in the world.
Unidentified Participant
Right. I think we will be. We do believe that that kind of leverage will allow us to competitively offer both induction as well as BLDC fans in the long run. In fact even in the short run as you will find out soon enough. What was the second question?
Unidentified Participant
Second question maybe on the channel strength and other things that we’re taking in. I think fundamentally Anirudh, if you look at it we had a clear called out strategy that time expansion is going to be crucial and we divided this into play to win and play to participate. If you look at some of the core categories that we’re looking at, ideas to how do you take your 80,000 tank to about 200,000. The large categories that we are entering as play to win from that perspective, apart from where we are already is what we have announced.
Solar pump, solar rooftop where meaningful businesses are getting built. Now wires comes in. So with this the TAM is already moving into almost 1.5 to 1.6 lakhs. Subsequent to that there are play to participate categories. Mobile etc is a simple play to participate category, not a large category that will look looking at it also wanted to tell you that as we speak while Crompton is extremely strong in general trade, we are the number one E commerce player in the segments that we operate in also. So it complements that and that will help us to grow the play to participate categories also.
operator
The next question is From Manoj.
Manoj.
Thanks.
Promeet Ghosh
Manoj.
operator
You can unmute yourself and go ahead with your question.
Manoj.
Thanks for the opportunity, sir. So you just give a brief indication of the entry or launch into Wyzen Cables? Probably. I just want to understand the thought process. Like right now we are outsourcing, but probably with scales moving up somewhere in FY27 we plan to invest more into this business. Set up your own manufacturing facilities. Secondly, just continuing with wires, your channel synergies will be. Will be the best part for Brompton. But in terms of distributors and all, probably there would be new distributors which you need to get on board. So how things are progressing over there.
And second question on the fans. The price hikes that are required to offset the commodity inflation and INR depreciation. So whether industry, considering the demand environment, whether industry is set to take those kind of price X and should we expect margins to remain at normalized levels going forward as well?
Promeet Ghosh
Okay, good, good questions. Firstly on wires, what is our sourcing strategy? Currently our sourcing strategy is outsourced. Remember that this is something that we do quite well in many of our products for the last several years. We have a reasonably large outsourcing. That’s because we are. One of the competencies that Crompton has is to ensure that the product quality can be very strictly maintained. We can get good quality product at reasonable prices. And so I currently our greatest strength is our brand and our go to market. And we do not as of now in the next year anticipate significant capital investments in this.
We will see as we go along and see as we get to scale. Insofar as fans are concerned. Yes, commodity prices are concerned. You will remember the last time when we had a conversation a similar question was asked and I had told you that for our part we would want to continue to take constructive pricing actions to defray cost increases. You can see that playing in our coming through in our margins this quarter. I do expect that the industry will also be equally responsible in this regard in the. In the current quarter. So I mean look, it’s very difficult to say how commodity prices will go.
But you know, it’s. I am hoping that the industry will be as responsible as we have been in this regard.
Manoj.
Thank you, sir. Sir, just to follow up on wires with regards to your channel synergies. So retails, retailers. Yes, it would be the same retailers, most of the retailers. But when it comes to distributors, I think you need to get distributors on board. And how we plan to progress vias reach into more number of states and probably how we are planning for that.
Promeet Ghosh
That’s also like I said earlier. You know we’ve been planning this go to market for some time. So you know we will have a mix. But given Crompton’s position we do believe that we can build up. We have the right to have a strong go to market and Manoj to.
Manoj.
Add to it today also if you look at it we have good synergy on many categories where distributors overlap. So when we are talking about entering into this category groundwork has already been done amongst the number of distributors that we have. Where we have synergies, where we have overlap, which market we need to appoint a new distributor and how do we need to go about it. That planning has been done in detail and therefore what we want to say is that consciously we are entering in few states there is a value proportion with which we are going to test in these markets.
As the value proportion gets accepted there is a national scale up that would happen. As that happens other things including supply chain investment required would also follow. Right now it is a very cautious clear capital allocation on a growth category to expand our time with a clear strategy on how to win.
Manoj.
Thank you sir and wish you all the best sir.
Unidentified Participant
Thank you.
operator
Thanks. The next question is from Praveen Sahai. Praveen, you may unmute your line and go ahead with your question.
Praveen Sahai.
Hi. Thank you for taking my question. So first question is related to the price hike. Had also you had given an indication there is some substitute RM to minimize the impact of RM inflation. So can you talk more about like last quarter you indicated around 1 1/2% of price hike in the fan. So what percentage of RM have you covered with the price hike and what kind of substitute RM are you taking to minimize the RM inflation?
Promeet Ghosh
Yeah Praveen, some of these alternative RMS are very strategic and competitive information so allow us not to disclose. The way we are working is how do we get our gross margin up Considering there is a flagship unity cost program that we have been running for many years now that continues to provide good accrual that includes technical levers that we use for cost saving and also some of the commercial negotiations that we do considering the scale at which we operate subject to that wherever there has to be price that needs to be taken up to pass on we have been consistently doing it.
There has been a price hike that has been taken in Jan. Net price increase of about say one to one and a half percentage. We are looking at two more rounds of price increase that would happen in Q4 and Q1.
Praveen Sahai.
Yeah, thank you for that. My next question is related to the your announcement earlier of a greenfield expansion with the 3.5 billion. So where we are about that, that.
Unidentified Participant
Is, that is progressing and I would venture that we would be in a position to give you more details in the near term.
Unidentified Participant
Yeah, it’s progressing very well.
Unidentified Speaker
Thank you, sir. And all the best.
Unidentified Participant
Thank you. The next question is from Rachna. Kokorija. Rachna, you can go ahead with your question.
Rachna,
Am I audible? Yes, yes. My first question would be on Butterfly. What is the primary driver of gross margin improvement in Butterfly? Given raw material prices have remained volatile. Why are your margins going up? So. Hi Rachna, I think we, we did talk about our go change in go to market sometime back. I think that’s what is actually paying us off. So we have two parts over here. The first one is in terms of premiumizing our own portfolio. So we did launch our range of IDA first series in Q2 this year. So which actually started doing well for us and our contribution is right now significant. The second one is, yes, we are in sync with sync in terms of taking our price increases in line with, you know, the bomb cost or price increases that are happening in the market.
So I think it is a mix of both. One is pricing because the other one is premiumization that’s left from.
Promeet Ghosh
So you know, what I think you see playing out in Butterfly is initiatives that we’ve flagged over the last two quarters. The product mix is improving. We are, we are adding. Not only is the ASP going up, but the ASP of new products that are being added. The margin of new products that have been added is higher and that’s helping. And also I want to emphasize, we’ve been saying for some time that the, that the terms of trade with the go to market now we are working very hard to reset those terms of trade. And again, what you’re seeing now is improvements coming through from there.
Rachna,
Okay, understood. One more question, data related. I understand Idea first series have traction. Well, I have seen good reviews on Amazon as well in presentation. Also we have mentioned that the contribution has increased. If you could quantify how much it has increased versus previous quarter and also overall in terms of volume, what has been the growth for Butterfly this quarter year on year?
Praveen Sahai.
Specificity, Rachna, we don’t share. I just wanted to leave with the thought that Idea first series has played a significant role. Not only ability to sell premium products through Idea first but also uplifting the overall brand where we become a choice for consumer. We have been a number two player in many categories apart from leadership in gastro. Now we are choosing challenging the number one players by meaningful innovation being brought in. So all of us not to share the specific contribution from a volume growth perspective. Largely it’s been a quarter that has been led by pressure cooker which is what we had called out in our press release.
Also it’s about a single digit volume growth is what we have delivered.
Rachna,
Okay, one more question. Can I.
operator
We request you to fall back in the queue please. Okay, next question is from Manjit. Manjit, you can unmute yourself and go ahead.
Unidentified Participant
Don’t worry, we will come back to all those who have another question. So not to worry.
Unidentified Participant
Hello. Yeah, just one question. You know, I’m curious about this. Every time, you know, a leading company in our industry enters an adjacency, you know, the rationale is, you know, obviously you. You will leverage your brand and your distribution because you’re already strong in some category. But what I notice is very rarely does that company become a top two player. And even if they get meaningful revenue share, the profit share is like very, you know, minuscule. And I think to some extent we have seen it with a peer, you know, wires and cable, leading peer who did it and you know, fans, etc.
Where they never really got any profits. And if I could be a bit. This thing even our lighting business over the decade has not really done much right. In terms of growth or you know, making good profits. So I’m just curious why this, you know, wires and cables will be any different.
Unidentified Participant
Why don’t you give it a shot?
Promeet Ghosh
Yeah, sure.
Praveen Sahai.
And maybe I’ll. Look, I. Manjit, I cannot tell you what other people have done and what other people have achieved. I can tell you what Crompton has done and what Crompton is demonstrating today. Right. Insofar as Crompton is concerned, we entered an adjacent category of solar pumps two years ago, two and a half years ago. Our business has steadily grown. And not only has it grown, it is very profitable. And in the last quarter alone where the solar roof, solar pumps business market has degrown, overall we have more than doubled our sales. Okay. Which not, you know, I would imagine you can understand means significant improvement in market share.
Okay. Similarly, insofar as our lighting business is concerned, by the way, our lighting business, we started before our fans business. Right. But it. I. While I agree with you that our lighting business had marked time, you know, for a few years in the earlier now over the last two years it’s been an Area of significant focus. Focus and today our lighting has leading growth and leading margins and leading growth and leading margins my friend. So especially if you take out non allied products of competition competition sometimes it includes wires also and sometimes include switch gear also if you do pure lighting in both the areas we are leading.
And I have to say that now that we’ve started to realize and leverage the benefits of Crompton’s position, it is for all to see what that can translate into. So yeah, I don’t want to comment on what other people have done or not not done and how well they have done it or not done it. But you know we do believe that wires is an area, another area where we have a right to win and you know we’ll see where that goes. I don’t know if you want anything.
Unidentified Participant
To add to what you said on the Pramit. I think fundamentally we talked about play to win categories as Promethe said. I would urge to go back and look at history, what we have delivered. While yes, fans are something that followed lighting, today we are not only India’s number one player, we are world’s number one player in fans. Secondly, if you look at pumps we again entered after that today we are India’s number one company in residential pumps. Subsequently we entered into water geyser, we are number one in E Commerce, number two in gt. Then we got into kitchen, we got Butterfly acquired from a top six, we are a top three player.
Then we got into air coolers again came from seven or eight and moved into top three solar pumps. Already we are touching at about a top three player. So if you look at it, in the past 10 years we have not entered a category to fish around for a very, very short term duration category. Strategy is very well thought through. It is not something that we come and announce and see that’s what we think about it. It’s a long term plan and I’m sure you would be aware that for the last two years we have been consciously calling out that there is going to be an addressable market expansion, that Crompton is going to consciously work and do it category after category.
And some of these calls that we have taken is an outcome of that. As and when we enter new category it is important that we continue to be a leader in the existing category and further push the bars. So as Promethe said we wouldn’t be able to comment on what competition has done on where and what we have a strategy on how do we need to pursue. And that’s probably what we would be able to do and deliver.
Promeet Ghosh
Okay, thanks for the detailed response folks. I’ll come back to you later on a one on one meeting.
Unidentified Speaker
Yeah, thanks.
operator
The next question is from Parag Kharek. You may unmute your line and go ahead please.
Unidentified Participant
Good afternoon sir. Thank you for the opportunity. Am I audible?
Unidentified Speaker
Yes, please.
Unidentified Participant
Sir, just a question out of curiosity. We are the number one company in the world in fans. How about thinking aggressively in terms of exporting these offerings and probably garner more market share outside India. So that’s the first question. And the second question is how confident we are in solar rooftop business where you know, outside Telangana and Andhra Pradesh we would be able to scale up aggressively and probably gain a strong foothold. So these are the two questions, sir.
Promeet Ghosh
Yeah, Parag. Firstly, I agree with you. As the world’s leading fans company, ceiling fans company exports are an area of focus. I am very happy to announce to you that in the last quarter we have demonstrated our focus on this area by actually hiring, you know, a. A very well, well experienced team on that segment. We’ve always had a team but the idea is to take it to the next level. And to that extent we’ve significantly strengthened our team in exports the last quarter itself and. Sorry, what was the question? The next question is the solar to rooftop business.
So solar rooftop business actually shaping up quite well currently. We are executing the orders that we have but simultaneously we are also trying to, you know, proceeding apace on the B2C offering. And I am hoping that in the near term you will we will be able to formally disclose to you orders that we’ve got in that segment. I do want to say one more thing and reiterate the point that I had made earlier. In all our businesses, scale makes a difference. And what we are finding is that the way we’ve scaled up our solar business is already making a difference to our margins in both solar rooftop as well as in solar pumps.
Material difference at the gross margin because now we have the scale. You know, I don’t know if we disclose it but these are material improvements in the margins of these businesses. Which also means that it positions us better to be able to provide a good product in the retail space.
Unidentified Participant
Okay sir, any new category or adjacencies in the your coming quarters or we done for.
Promeet Ghosh
I think we have given announcements around where we have entered what we will do in future. Allow us to let us know close to the quarter. Thank you. As you. As you guys are well aware, we do not make any announcements well in advance and I Think we have clearly been very transparent with you where we are close to launches and actually making those launches.
Promeet Ghosh
Sure sir. Good top line. Got good EBITDA margin. Congratulations and good luck for the future.
operator
Thank you. Thank you. Thanks.
operator
The next question is from Himanshi Narang. You may unmute your line and go ahead please.
Himanshi Narang.
Hello. Yeah, hi sir, this is RE from Insl. Couple of questions a. Can you in case if I missed it can you mention how is the situation of channel inventory when it comes to fans both with the company as well as with the channel partners on the new rating fans and the operating with the channel partner signal?
Promeet Ghosh
I think it’s fair. I think it’s fair to say that you know the channel had a fair amount of pre of all star rated fans some of which they’ve sold off in the. In the last month. And we of course being Crompton have from the day one started selling only the new star rated fans for the first of January. And I. I do believe that the season so far has been shaping up recently.
operator
Okay, we’ll move to the next question from the line of Pratham Sethia. Pratham, you may unmute your line. Go ahead please.
Unidentified Participant
Hello. Yes. Hello. Am I audible, sir?
Promeet Ghosh
Yes. Okay.
Unidentified Participant
Thanks for the opportunity, sir. Sir, my question is related to the core business activity of the company. Because we were the electric rather we are the electric goods company. And now recently we entered into the so solar related business solar pump as well as the solar root 2. Nothing wrong in diversifying the business. But my question is why we what are the strong reason to enter into the solar business? Naturally your answer may be to make the profit. But does the company have the enough bandwidth to compete with the established player in the solar rooftop or solar pump with this and is the another reason is that the electric goods are slow now there may be a slow growth in the electric goods and that was the reason.
Sir, kindly explain.
Promeet Ghosh
Thanks for the question, Pratham. We are very much great believers in doing things that we understand well insofar as solar pumps is concerned. Remember that we’ve been a pump company for the last 50 years. And we are also the leading pumps company in the residential pumps company in India. Heart of solar pumps is pumps. And as to whether we are able to compete in that business, I leave that to your judgment. I have told you that we we are continuing to grow our business at 100 plus percent every quarter. And we have quickly become one of the largest players in that segment already with a strong profitability profile.
Similarly for solar rooftops this is we believe very much an adjacency for our business. And together with solar pumps we have significant scale. Now you may be aware that shortly after we entered that business we also announced that we have order book of close to 500 crores. So again leave it to your judgment whether that. Whether you think that we are able to. Able to scale up that business or not. But we do see us being able to enter these businesses and not only make profits but build leadership positions. We are not interested in entering businesses in which we are not.
We are not going to be leaders. But.
Unidentified Participant
But our. Our growth in the electric goods will remain the constant or will it grow faster?
Promeet Ghosh
So you know to give you a sense of the growth in our current businesses, last last year our traditional businesses which are forms and fans. Those businesses have suffered. Not only us, the entire segment is suffered because of an adverse season. But I am a great believer that these businesses will continue to be great profit and revenue growth drivers going forward. And even in this time, you know to give you a sense in the fans business we’ve been stepping up our BLDC range. And sequentially I don’t mind telling you that our our BNDC range has grown materially 50 plus percent which means that we’ve also gained market share 5 plus percent.
So it’s. You know, even in times where season hasn’t been the most supportive we continue to find pockets of growth in our pumps business. For instance, we have now a full product range including agri and specialty pumps. And while that segment has been de growing for the rest of the market we are growing very strongly in that segment as well. So anyway, short point is that we continue to strengthen our positions in our traditional areas as well as enter areas where we believe we really have. We have the right to win.
operator
Thanks. We’ll take a follow up from Aditya Bhar. Aditya, you may go ahead please.
Promeet Ghosh
Yes, aditya.
operator
Since there is no response we request Praveen Sahai to go ahead with. Oh his question.
Unidentified Participant
Thank you for a follow up opportunity. Sir, my question is related to the solar rooftop as There is a 365 watt crore of order book is. And also you had highlighted it’s not of a B2C it’s more of a B2B. So can you give some more color like it’s a B2B B2G and one. And the second is a procurement strategy here like you are procuring from a domestic manufacturer or import supporting how you are doing this in this segment.
Promeet Ghosh
Guys, I explained this earlier for the order book that we started with in our solar rooftop business is not 365 crores. It is 500 crores. Right. While this ordering has been with through the medium of the government the product that we are selling is exactly the same product that we are selling in the B2C business. This is not. This is. There is a big difference here. When we do B2B in lighting then the product that we sell in the B2B lighting is a very, very different business product than we sell in the B2C lighting. This is not that product.
We are installing rooftops at homes in Andhra Pradesh in 40,000. 44,000. 40,000. 38,000. 38,000 homes in Andhra Pradesh. It is just that the government has intermediated in that order. Okay. And insofar as the supply chain is concerned, this is a supply chain that we built up also while we were ramping up our solar pumps business. So we have an ongoing arrangement with panel suppliers, with inverter suppliers, with AC DC suppliers and so on and so forth. Right. And as I said earlier, because we are buying products at such large scale in both our pumps and our solar business that is leading us to be more, more and more competitive in both our solar rooftop as well as our pumps business.
operator
Thanks. The next question is from Aditya Vikra. You may go ahead with your question, please.
Unidentified Participant
Yeah, I think we are done.
operator
Yeah. I think we’ll take one final question.
Unidentified Participant
Sorry. Am I audible? Sorry, I could not unmute myself.
Promeet Ghosh
Time for a drink. I agree. Guys. Just joking. Don’t take me seriously. No, no, no.
Unidentified Participant
That’s absolutely fine. One of the things, I have been attending a lot of phone calls. Your humility and how grounded you are is exceptional. So compliments to you and your team. I hope this continues as it is. So if I can ask questions and I probably won’t fret about the new launches or anything else. I. I just see a lot of volatility in terms of your margins.
Unidentified Speaker
Right.
Unidentified Participant
If ideally somebody has to look at the company. Right. What should be the appropriate margin? And with you entering into wires and cables. Right. What should be the steady state of margin? What is the management looking at? Is my question, sir. And. And I. I would appreciate if you can not give a number but qualitative input as to where you are looking at and what should be the steady rate. Thank you. That’s the only question.
Promeet Ghosh
Aditya. I. Let me attempt it as best as I can and then I’ll hand it over to the guy who knows much, much better than I do. Namely Kish. I try Kish. Guys, when we look at margins, margins, you can look at gross margins and then you can look at EBIT margins, right? Now we must understand that the gross margin and the EBIT margin structure of different businesses is different, right? If we look at a business like fans, there is high gross margin, reasonable amount of cost below gross margin, and you come to a certain, if you look at other products, for instance, B2B lighting, there is a lower gross margin but very little cost below gross margin.
And therefore you come to a certain EBIT margin. Right? So as the mix changes, the gross margin structure will change. Right? So it’s. That is a fact of life that we have to, that we have to kind of deal with right now to answer the question about variability, our fans margin, for instance, fans margin is impacted by of course season, because at the end of the day, if the season doesn’t perform well, perform as per expectations, then the level of competition in the business goes up. Right. And as a consequence there can be an impact on margin.
It also impacts a little bit on commodity prices. Insofar as we are concerned the fans business, we’ve explained to you before, we are coming away from a period of intense competition. We also coming away from a period where there is high commodity prices. Now, we have done various things in order to defore portray that. We have on one hand being the leader, that we are taking price increases and on the other hand worked on the product. So we are now being able to show to you an improvement in margins. Right. Do we expect some of the benefits to continue into the future, the trend to continue to the future? Inshallah, yes, is what I’d say we’ll have to, we’ll have to see similarly in lighting, the margins have historically been where they have been.
What we have done is that we have done a whole bunch of work on two fronts. We changed our product mix, we introduced newer products which are higher margin. Right. And also we worked on our supply chain. So what you are seeing in lighting is the benefits of a material improvement on both. Material improvement on both. We have been saying to you for a very long time that we are going to ramp up our ceiling lights business. What you are seeing is that we have actually lamped that up quite a bit. Right. And of course, as we ramp up and as we do premiumization, the margins improve again.
Similarly in butterfly, we told you that we are going to get into premium products. We told you that there’d be higher margin products and that is why you’re seeing the Benefits in the margin. Right. In again I can go on each of the businesses. But short point is we are continuing to work a pace on not only growing the business revenue growth but also margin improvements. Right. I. I’m afraid I cannot give you a more detailed answer you’ll appreciate. But this is, this is, this is, this is, this is. It should give you a sense of what we are up to.
I mean last point I’ll tell you. We have been saying guys, sorry you got me started now. Sorry I’m keeping you from your weekend drinks guys, but give me a minute. We said for a long time we said we are leaders in pumps, residential pumps. We are by far and away the leader in residential pumps. We said we would get into agri and specialty pumps. What you are seeing today is our agri and specialty pump business growing significantly faster than the industry. Not only are you seeing it grow significantly faster than the industry, it is now a material share of our pumps business.
I’m not talking about solar. Solar is different. I’m talking about agri and specialty in our traditional pumps business business. Not only is our. Is it a material part of our pumps business today, our margins in that product has also gone up. Because as we’ve got scale, right. So I look at the end of the day the margin profile is all is. Is going to evolve going forward. But these are underlying trends that. That people can read into in our various products. No, that’s.
Unidentified Participant
That’s very helpful. I appreciate you giving such a detailed answer and best of luck for the new product launches. And I hope the margin trajectory and the premiumization continues as you have stated it out very loud. Appreciate each one of your time and best of luck for the future endeavors.
operator
Thank you. Thank you. Thank you.
operator
Thank you. The next question is from Keshav Lahoti. Keshav, you may unmute your line. Go ahead please.
Unidentified Participant
Guys, it’s 5:30. So. Yeah, let’s take it as a last question. Last question if people don’t mind. Yeah. Keshav. Hello. Yes K. Yes sir. So my first question is as we can see the solar roof of business execution have started. So this 500 crore order by when it will be executed. And secondly as it is a government order, will it lead to stretch on the working capital days? The expectation, Keshav is that the this order book will be executed over Approximately the next 9 to 12 months. 9 to 12 months. As you are. As I already said the. This. This last quarter we’ve already executed about 19 crores of solar rooftop sales. We look these are government orders. But we have a reasonable payment schedule that has been agreed with the government. So this is you know we do believe that these are the working capital will be per expectations in this segment and the working capital will be as has already been baked into our margins.
This is not something that’s new to us. We also have a large solar pumps business where we have been making reasonable, reasonably quick recoveries of you know of receivables from the government. Of course you this is something that you have to keep working at but it’s a muscle that we’ve learned and are continuing to build.
Unidentified Participant
Got it. One last question from my side. What would be the total impact of BE norm changes on fan side? What were the cost escalation and what is the commodity escalation happening? And as you highlighted you have taken one one and a half percent hike and possibly more. Two hikes are in store in Q4 and Q1. So what sort of hike you are planning in this two heights and whether it will cover all the cost impact and secondly will your margin will be impacted till Q1 as the entire cost pass on? Won’t happen at least till Q1.
Unidentified Participant
Yeah, I think Keshav, we talked about this earlier. This is not only going to be a price hike, there is going to be a cost improvement that we are working through. UNATI coupled with MIX is also going to play a significant role. Now in terms of cost of BW 2.0 is concerned. Some of these things we have probably ready ahead of time and we could mitigate a large part of the cost increase that needs to happen on account of BW as compared to the industry and segment as a whole. Yes, commodity is going up. That’s the reality.
But that’s where we talked about baking in two price increases. One that has already happened. Subsequent to that, one more in Q4 and one more in Q1. We think that should help us to largely offset coupled with the other cost initiatives that we discussed.
Promeet Ghosh
So you know Keshav, we a lot of people asked us about 912 months ago when we announced XTech this is what extake was about, right? Getting ready in advance for the BE transition of course also the next BE transition but certainly this transition and I, I think it’s fair to say that we are quite, quite well prepared from a cost point of view for this BE transition which happened earlier in Jan.
Unidentified Participant
Okay, thank you sir.
Promeet Ghosh
Thank you.
operator
I leave the floor to the management for any closing remarks.
Promeet Ghosh
No, nothing more. Have fun guys and you know have a good weekend. Thank you. Thanks a lot.
Unidentified Participant
Thank you.
Promeet Ghosh
Thanks, everyone.