Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Havells India Limited (NSE: HAVELLS) Q4 2026 Earnings Call dated Apr. 22, 2026
Corporate Participants:
Anil Rai Gupta — Chairman and Managing Director
Unidentified Speaker
Analysts:
Umang Mehta — Analyst
Unidentified Participant
Ravi Swaminathan — Analyst
Natasha Jain — Analyst
Renu Baid — Analyst
Aniruddha Joshi — Analyst
Bala Subramaniam — Analyst
Siddhartha Bera — Analyst
Praveen Sahay — Analyst
Pulkit Patni — Analyst
Achal Lohade — Analyst
Ashish Kanodia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY26 earnings conference call of Havells India Limited. As a reminder, all participant lines will be in your listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr.
Umag Mehta from Kotak Securities. Thank you. And over to you.
Umang Mehta — Analyst
Thank you, Steve. On behalf of Kotak securities, we welcome you all to Q4FY26 and FY26 results conference call of Havells India Limited. We have with us today the senior management represented by Mr. Anilzai Gupta, Chairman and Managing Director. Mr. Rajesh Kumar Gupta, Whole Time Director and Group CFO Mr. Amit
Anil Rai Gupta — Chairman and Managing Director
Kumar Gupta, Whole Time Director and Mr. Rajiv Goyal, Executive Director. Now I hand over the call to Mr. Anil Rai Gupta for his initial comments. And then we will open the floor for Q and A. Thanks. And over to you Anil sir.
Unidentified Speaker
Thank you. Thanks. Good. Thank you for joining today’s call. We hope you would have reviewed the results and now will now walk you through the key. High overall coup was backed by mild start to the season momentum in industrial infrastructure living categories remains strong. However categories cost free predominantly driven high costs arising from recent global disruption. We have stepped up our advertising investments and brand while still gaining growth in overall. On the profitability front margins held well except Lloyd which was impacted due to lower revenues.
We continue to navigate cost pressures. Character price actions have also been initiated. Our renewable energy initiatives continue to scale as you were aware during the period investment. This investment allows us to leverage Goldie’s solar module manufacturing capabilities to expand our solar. Additionally during the curve gain of Rs. 283 crores on this investment. The gain is reported under other income for the quarter. We have invested in setting up a new refrigerator plant at Gilot. During the quarter the capacity was commissioned and a refreshed product fold was launched.
After summer season we are now seeing signs of pickup in demand for cooling products. We remain optimistic on a revival of summer demand while closely tracking and we now move to Q and A.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and two
Unidentified Participant
Participants
Operator
Are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ravi Swaminathan with Avenders Park. Please go ahead.
Ravi Swaminathan
Hi sir. Thanks for taking my question. My first question is with respect to the cables and wire segment during the quarter we had registered a 14% growth. If you look at the copper prices I think year on year it would have increased by a much higher number. So had we seen a decline in terms of volumes at a cable and wire segment level. If so, why was it so? And was it just related to dealer destocking alone or the end market was also on the weaker side? If you can give some clarity on.
Unidentified Participant
Yeah, thank you very much. Yeah, Sorry, your voice is cracking
Ravi Swaminathan
A bit, sir.
Unidentified Participant
Okay, I’m a bit surprised. Can you hear me now?
Ravi Swaminathan
Yeah, it’s better
Unidentified Participant
On an overall basis of growth. And the industrial cable segment has grown much faster than the domestic wire segment because during the quarter these things occur in Australia and very high base. Last year if you remember fourth quarter 202025 saw a major and was there some amount of price correction copper in copper before the war and hence overall loops down to fourth. So you see wire segment remained flat but the cable segment has.
Ravi Swaminathan
Okay. And with respect to the other two couple of other segments one of the AC and fans how much amount of price increase we would have taken over the past few months to compensate for the raw material price increase in both these products. If you can highlight that. And how much are we likely to take
Unidentified Participant
Price increase are actually sometimes first price increase happened due to the energy efficiency ratings change during the quarter and then post there are royal shills which are happening war February 24th there is increase of raw material prices including other. So I would start from till April There is calibrated price increases happening not only in France but in our order different. Right. Because unlike.
Ravi Swaminathan
Thanks sir.
Operator
Thank you. The next question comes from the line of Natasha Jain with Philip Capital. Please go ahead.
Unidentified Participant
I think getting easier people here. Is that correct? Should we do on some other number or you can call on my mobile.
Operator
Yes, just a second. I’ll connect on that.
Unidentified Participant
Okay.
Operator
Yes, I can continue.
Natasha Jain
Yeah, can you hear me? Yes,
Operator
Sir. Should I go ahead with my
Renu Baid
Question?
Operator
Yeah, ma’.
Renu Baid
Am. Yeah, thank you. So since your line was not clear, I’ll just repeat one question. I had incremental in terms of wires and cables you mentioned that the volume has been flat but margin increase has been very sharp. So could you point out what could be attributed to inventory Gains and if there’s any mix change that has led to such a sharp margin spike despite volume degrowth,
Unidentified Participant
I think, you know, I would say rather than just looking at this particular quarter because there is usually in this quarter year end adjustments also because of the final dealer incentives and all. But overall there were inventory gains because of copper and aluminum as well. But you know, volume growth was only 6%. Not flat, but volume growth was 6%. And. But we have seen slight degrowth in domestic fire segment, but much higher growth in the industrial segment.
Renu Baid
Understood. Okay. All right. So my second question is on lighting. Now revenue there again has been broadly flat, but margin has been. Margin has increased extremely sharply. Your contribution stands at 37 and you’ve mentioned in your presentation that the long term average is 30 to 32%. So does that mean that there is some one off even in lighting and that should normalize to 30% levels going forward?
Unidentified Participant
Yeah, you can, you can take that as well. As I said, during the year, sometimes in the fourth quarter there are certain year end releases and that is for the entire year. So you know, one can take on an average, you can expect 30 to 32%. But sometimes the first three quarter releases also happen in certain cases. Sometimes it’s the other way around. But in lighting this has happened. And so I would say a long term would be 30 to 32%.
Renu Baid
And so this is even despite the fact that ASP decline has stabilized. That is what is mentioned in the ppd.
Unidentified Participant
That’s right. That’s right.
Renu Baid
Got it. And so one last quick question. In terms of Lloyd fourth quarter, we understand that the summer was bad and in fact it continued probably till beginning of April. Could you throw some color how the channel inventory right now is and little color on selling and sell out both.
Unidentified Participant
I think your analysis is absolutely right. The first half of April was also slow, so there were some channel inventories. But now it’s evening out and south and west have started a good summer and I think it’s now coming in the north as well. So hopefully by the end of this month there will be normalized inventories at the channel level as well.
Renu Baid
Understood. Thank you so much, sir. All the best.
Unidentified Participant
Thank you.
Operator
Thank you. The next question comes from the line of Rahul Agarwal with Ikegai. Please go ahead.
Umang Mehta
Hi, very good evening. Thank you so much for the opportunity. Sir, couple of questions. Firstly on outlook for fiscal 27, both on volume and revenue growth. Given that fourth quarter ended week, my sense is should we expect double digit volume growth plus some price hikes into FY27. Any outlook? Could you share please?
Unidentified Participant
In today’s environment, what do you expect an answer from me? You know, we are just looking at month to month, you know, who knows where the wall goes, how the. I mean okay, we are seeing sharp increases in prices for most of the product categories. So how much will volume growth be? It is difficult to say at this point of time and I’m not even talking about the summer but the kind of sharp increases in prices can. Hopefully it should not but if it starts affecting the demand also. So that’s something which will have to be seen as we operate and maybe this is for other people’s questions also.
At this point of time it is very difficult to say what the growth will be. We are very positive, hopeful. The summer has started off at a good note but the demand is yet to be seen and our focus will be to continue to strive towards getting more efficiency. If you will see, we have also continued to invest heavily on our brand building activity which clearly indicates that we are in here for a longer period of time. And it’s very difficult to predict short term ups and downs.
Umang Mehta
The base case, even if you do like mid single digit volume along with the price hike, we should still reach like mid double digits next year, right? In terms of value growth, is that a reasonable assumption?
Unidentified Participant
As I said right now I would not be. It would not be right for me to give any number.
Umang Mehta
Okay, okay, no problem sir. Secondly, on the margin side given various amount of price hikes and what we are seeing on the RM inflation side, should we assume that whatever RM inflation forex issues in terms of cost inflation we are seeing most of that is actually passed through and there should, you know the entire absorption is actually getting done from Havel’s side. Is that understanding correct?
Unidentified Participant
We are striving to do that. You know again we are in a not. We are in a competitive world and we have to see how it holds up. We are striving to pass on the cost but again as I said, we have to compete in the market. Our focus will also be to retain or gain market share. So we will just play a balancing game.
Umang Mehta
Right sir, and last question sir. On the after sales service, my sense is we’ve seen a lot of premium product launches across all segments from Havel’s over the last six months. When we look at your website, a lot of new products are actually launched. Just to understand that I think from a technician perspective, whoever services the customer from an after sales perspective is largely the same team for premium as well. As mass segment products, is it really possible to have a separate team for luxury and premium products so that the customer experience is not compromised?
Any thoughts on this?
Unidentified Participant
I think these are very operational issues which we continue to, you know, ensure that we will give the best service to the consumer. But these are very operational issues and part of you know, one part of the business that I think, you know, there’s no point of us, you know to spend time on this, on this call. But the. But what you are saying is, you know our objective is to continue to give the best service as well as best customer experience. Always. Thank you. It’s good to know that you noticed that savages coming out with premium products.
That is a reflection of our continued investment in innovation. Got
Umang Mehta
It sir. Thank you so much. I’ll get back in with you.
Unidentified Participant
All the best.
Operator
The next question comes from the line of Anirhda Joshi with icici. Please go ahead.
Aniruddha Joshi
Yeah, so thanks for the opportunity. And solar business. So we have seen almost 48% growth in other segment and even the EBIT margin has also seen a good expansion. So if you can share more details on the solar business means have reached a in a normalized run rate or there is a still good scope to potentially grow in this business how long this growth rate can sustain. And again margins of solar business have they reached to a optimal level or there is a still further scope to see margin expansion in solar business also that is question number one.
And in terms of question two, as far as the volume growth in fans, coolers as well as the refrigerators, so how it would have panned out because probably there was no excess sell in December for these products. So have they also seen some impacts on volumes or is there healthy growth in these products? Yeah. Thanks.
Unidentified Participant
So in your first question on solar, I think most of the growth that you see in the other segment is coming out of solar and you see the way to look at it is that we are building capacities both in industrial cables as well as solar solar through an investment in Goli and because of the assured supplies more capacity that we have, we are able to take advantage of the tailwinds that are there in these two segments. And going forward also in the coming year also we do feel that there is enough opportunity in the solar segment to continue to grow.
But we’ll be also expanding our product ranges in the entire renewable space in coming times. So again difficult to say about the margins. One, of course volumes will benefit but it is a competitive space and we also need to see our market shares growing and also we’ll try and maintain or increase margins through better product additions and expansion of the product range in the renewable space. That’s what we’re looking for. As far as the second question, I think in fans in the third quarter there was a change in the BE norms.
So there was some stocking in the end of the third quarter and which impacted some volumes in the fourth quarter. But also the seasonality aspect also came in in the fourth quarter. So hopefully we should be seeing better volume growth in the first quarter.
Aniruddha Joshi
Sure, sir. But in terms of monsoon, like last year also was impacted by monsoon. So logically the impact of monsoon this year is probably less compared to what it was last year. So on that favorable base, should all these segments report strong growth or still the impact is so high of monsoon this time also that we are still seeing some impact of monsoon.
Unidentified Participant
It’s difficult to predict what will happen in the monsoon. But you are right, last year was a low base. So we should be seeing good growth in the in this year.
Aniruddha Joshi
Okay. And any internal target estimate that the company would be working on the summer products that you can share with us,
Unidentified Participant
I think we do not give any guidance on these numbers. And frankly in this scenario, you know, we are hoping for a faster growth, as I already said in summer products last year was a very low base. We are hoping to get a good growth in the in this first quarter.
Aniruddha Joshi
Okay, sure sir, just last question. The weighted average price hike at the company level would be more than 10%. Is it a fair assumption?
Unidentified Participant
No, I think we would like to see it that in many product ranges it ranges between 5 to 10, 5 to 20%.
Aniruddha Joshi
Okay. Sure, sir, sure. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants please limit your questions to two per participant. The next question comes from the line of Bala Subramaniam with Arian Capital. Please go ahead.
Bala Subramaniam
Good evening sir. Thank you so much for the opportunities, sir. Trade receivables fallen drastically from 1254 crore to 782 crore almost to 38% even data days. It used to be 20 or 21 range in last five years. But right now it’s came to 30 days. So I’m trying to understand. This is majorly because of faster collections or change in payment terms with these distributors. And how do you understand in upcoming years?
Natasha Jain
No, this is normally the last day. We are through channel financing. So these kind of frustrations is nothing untowards toward them. There is no structural change in our payment terms of the building depending upon the mix. Sometimes these things happen. But I think you should keep them as normalized and not not take them something you see with the exception happening in this particular March quarter.
Bala Subramaniam
Okay sir. Sir, on the ECD side in Q3 is majorly described as largely. Yes sir, on the TCD side in Q3 it’s majorly described largely volume driven, not press led price lead. But in Q4 we saw volume decline but there is no major price reversal. So I’m trying to understand if you could share volume growth or degree growth for fans, water heaters and OFR for Q4.
Unidentified Participant
Yeah, we don’t give separate volume details for fans and motor heaters. But as I said overall there was a degrowth in value terms in fan segment because of the initial push in the third quarter because of the energy efficiency and a delayed summer result.
Unidentified Participant
Okay sir, thank you.
Operator
Thank you. The next question comes from the line of Siddhartha Behra with Nomura. Please go ahead.
Siddhartha Bera
Thanks for the opportunity, sir. First on Lloyd, I mean can you highlight broadly how much price hikes have been taken till now and how much is required to sort of go back to that double digit contribution margin level which we had last year?
Unidentified Participant
Work in progress,
Siddhartha Bera
Any price hike, sir. If you can quantify how much is more needed or
Unidentified Participant
As we have already said that there were quite a few prices especially in case of Lloyd because of the energy efficiency change, the three star five star change. So a lot of that happened during Jan to March and now I said work in progress because now we’re really seeing the impact of the cost increases post war. So that is now being passed on. So there is a work in progress but it ranges between at least 8 to 15% depending upon.
Siddhartha Bera
Okay. And on the cable and wire side, I mean we what will be the utilization levels of the new cable plant which we started And I think phase two should come sometime this year as well. So if you can just give us some color on that as well.
Unidentified Participant
So right now, you know, whatever capacities got added, we’ve been still operating at high capacity utilization and more capacities will come up, as you rightly said during the year. So hopefully by the end of this year, early next year, first quarter we’ll be having the entire capacity which are done.
Unidentified Participant
Understood sir. Okay, thanks a lot. I’ll come back and.
Operator
Thank you. The next question comes from the line of Aditya Bhartia with Investec. Please go ahead.
Anil Rai Gupta
Hi, good evening sir. So given that some of these prices, price increase announcements for fans and roommates could have been made by March end, did we not see any element of pre buying given the sharp price increases that you would have announced? That’s my first question. And the second question is just on the other segment margins that we are seeing in the other segment, is it operating leverage benefits that are now starting to help us and in that context should we expect high teens kind of contribution margins to be sustainable from here on?
Unidentified Participant
On the first part, yes, there was some pre buying in March, especially in the cooling product. But generally that is the case also in most of the year because it’s also the upcoming season time for April and May. But that was also accentuated by the fact that the price increases were happening. And again as I said it’s right now solar is sunrise industry for us. We are evaluating this. Our major focus is to continue to gain market shares and get the tailwinds of this industry and difficult to say what the final margins will be but they will continue to improve as you rightly said about the operating margin operating leverage.
Anil Rai Gupta
Perfect. That’s helpful sir, thank you so much.
Operator
The next question comes from the line of Renu Bed with IFL Securities. Please go ahead.
Renu Baid
Yeah, hi, good evening sir. So my first question is, you did allude to the fact that the current environment has been extremely difficult to predict and you have been looking at the business on a month, on month basis. But going by your experience of how consumption and consumer demand has been, given the steep inflationary pressure across both across segments and categories, do you think consumer offtake in broad is likely to remain slightly in the near term in the next couple of quarters and the entire thesis of expectation and recovery in consumption is getting prolonged?
Unidentified Participant
Yeah, I have not seen this kind of a price escalation in the recent past in the recent memory. Usually it happens, but it is not so steep and not across all product categories. Sometimes there are more fluctuations in the cables and buyers, but this time we are seeing across. So while we are very hopeful of the overall structural things which have happened within India as well as within average, but ultimately it is, you know, we are bound by the fact that the consumer offtake can get affected if the price hike is too high.
Let’s see how it pans out. Let’s how the war pans out and hopefully we should have some in the coming months.
Renu Baid
But for us the priority would be to ensure to retain the market shares are retained or improve in the current environment, even if it may slightly challenge.
Unidentified Participant
Yeah, I mean usually we have tried to be more efficient during these times and more efficiency leads to market share gains. So Our investments continue to be there whether it is innovation, whether it is in brand building, distribution reach also. So our needs and all these things, those investments don’t slow down during a tough period.
Renu Baid
Got it. So secondly
Unidentified Participant
Renu, if you’ve seen in the past if it means some pain in the short term also but we are again wanting to play a long term game here.
Renu Baid
Absolutely. So looking at the Capex brand in the last couple of years we clearly stepped up our investment plans across manufacturing facilities, particularly cables and wires and load. So how should we look at the investment plans for Fiscal 2728? Any notable segment you would want to highlight apart from the annual spend budgeted for the next two years?
Unidentified Participant
Yeah, I think by 2728 major expenses would major Capex would go into cables and wires which is already panned out and I think this is a lot of that is happening in this financial year also 800 crores. The rest is a big investment is going into the new R and D center and that will happen over the next 2.2.5 years. The rest you know there is no major new Capex in the Lloyd segment.
Renu Baid
Got it. And this lastly linked to the cables and wires. We recently gathered that one of the large players with presence on the cement side who was pouring into cables and wires have preponed their entry into the housing wire market by a quarter or two. So do you think in the current environment where the market is struggling, but on the volume side a large entrant entering in the space could have put incremental pressure on the existing peers and the industry pricing trends?
Unidentified Participant
Yeah, I mean generally speaking cases in wire, especially wires, there has been a lot of consolidation in the past also from unorganized or regional brands or small brands to organize that more and more this industry has absorbed newer players and I think going forward also companies which would continue to invest in innovation, brand building and distribution reach will be the winners in this segment. So hopefully new players will also come with the right investments. They’ll definitely gain some market share but some readjustments may happen between the unorganized and organized sector.
Renu Baid
Sure. And last question if I can ask. While you’ve always spent enough energy and money in terms of distribution reach across regions, north south are broadly taken care of. How do you look to tackle the western region in terms of penetration for Havil’s products except cables and wires on the B2C side and any particular areas you want to highlight to fill the gap?
Unidentified Participant
I would say that you know Havel continues to invest not only in the western region but also certain parts of the southern markets like Tamil Nadu where market shares are lower as compared to other markets. Those investments are going both in distribution but also, you know, localized brand building as well. So we are seeing, you know, good growth if we, if we actually break down this growth into those areas where we are investing, investing heavily towards, we are seeing good traction in these markets whether it’s west or coming out.
Renu Baid
Thanks much and best wishes to you. Thank you.
Unidentified Participant
Thank you.
Operator
Thank you. The next question comes from the line of Praveen Che with PL Capital. Please go ahead.
Praveen Sahay
Yeah, thank you for opportunity. I have two questions. The first is as you had highlighted next, you know the investment focus area is towards the industrial, whether it’s a cable or renewable. So how we are going to see the B2B B2C mix evolve for the company in the next few years,
Unidentified Participant
I think in cables also underground cables is something where we are investing to some extent under invested. But you know, in the past our B2C to B2B has remained between 75, 25 or 75. We hopefully in the next couple of years we should continue to grow. Even in the B2C segments especially they see a lot of growth opportunity in wired ecb. So definitely there is, I think, you know, there will not be a meaningful move from B2C to B2B.
Praveen Sahay
Okay. Okay. And the next questions are related to the switch gear. So it’s highlighted that the margin impact is because of lag in the pricing of the cost. So do we believe that in the coming quarters it is possible that we’ll go back to our 38% of contribution margin?
Unidentified Participant
Yeah, we are striving towards that. As I said, in certain cases the cost increases are so high that we were. There was a lag in passing on the entire price increase. We will continue to strive towards moving there. But I also said that our eyes will also be on retaining market share. It’s not only. So this is something which we have to see how it pans out.
Praveen Sahay
Why I had asked that because the growth for the entire year for switchgear is also quite low. So it’s more focused on the growth. The way forward or major target is to achieve our contribution margin.
Unidentified Participant
I think it will always remain a balance between growth and profitability.
Praveen Sahay
Thank you sir and all the best.
Unidentified Participant
Thank you.
Operator
The next question comes from the line of Pulkit with GS. Please go ahead
Pulkit Patni
Sir. Thank you for taking my questions. Anilji, I have two questions for you. First is in light of whatever is happening globally, can you just discuss any supply chain disruptions that you have faced or navigated. And secondly, is there a scenario right now likely wherein again stronger companies like you emerge stronger given better supply chain controls etc. In the current environment? That’s my question number one
Unidentified Participant
On the supply side there have been challenges over the last couple of months, especially more on the production side. Those have been navigated and not to go into each detail, but those have been navigated on the raw material side as well as on the production side due to the gas supply. Going forward we’ll continue to navigate those things. I think your question about whether stronger companies are in a better position to manage not necessarily also in the supply chain but also continued investments and that’s what we’ll continue to strive for.
As I’ve already said, risk, innovation, brand distribution, we’ll do that and you know have a long term thinking rather than a short term thinking. I would rather say quarter to quarter thinking would not be in our mind. How do we continue to invest for the long term?
Pulkit Patni
Sure sir. So my second question actually in relation to that only, which is we have about 4,000 crore of capital now deployed in lawyer which at this stage is barely generating any profitability. If I was to look at this say further next two to three years, what is going to be the strategy to get our returns higher in that particular segment? You know, is brand building going to be a continued focus? Is utilizing our capacities, the two factories that we have going to be the focus? Just some thought process about how should we look at capital returns on what you’ve invested in Lloyds.
Unidentified Participant
The biggest thing about any consumer oriented brand builders, brand oriented business is something where, you know, it’s an easier answer that you can’t really say. Okay, you know, if I have to fully utilize my capacity, I lower down my price and start selling more. It doesn’t really happen as you can very well understand. It requires long term investment in brand building. So we are focused in Lloyd will continue to be towards bringing out better products through innovation which means improving image through brand building and innovation for a better margin and utilize the capacities that have been created for better operating levels.
So that’s where the profits will come from on higher sales due to capacity utilization, brand building as well as improved margin. So again as I said it’s. It’s everything put together but everything has to come together in certain period of time. It can’t come in very quickly and that’s what we’ll continue to invest for
Pulkit Patni
Sure sir. Useful. Thank you so much.
Operator
The next question comes from the line of Mr. Achal Louhade with institutional equities. Please go ahead.
Achal Lohade
Yeah good evening sir. Thank you for the opportunity. Two questions sir. First, if you could give us some sense if possible on the full year growth in terms of fan wires, water heaters etc. Just trying to understand you know if. If we have gained market share we have seen some market share loss in any of the categories. If you could highlight that
Unidentified Participant
Fans, I mean generally we don’t give product wise growth rates but fans we have degrown in the entire year so and that fans, water heaters sorry vans, ACs and water coolers. Coolers there we have degro. So that’s what I can say. But talking about market share we do believe that we’ve been able to at least retain if not gain
Achal Lohade
Any of the category where you think you could have lost market share.
Unidentified Participant
I don’t believe so.
Achal Lohade
Understood. The second question I had you know just a top down thoughts from a. From a positioning of our products would it be possible to get a sense in terms of the economy and mass premium and premium mix and like are we under indexed in the volume segment where probably the growth is could be better and premium is facing a challenge in terms of growth any color on the segmentation at a broad level. Sir
Natasha Jain
Achill the strategy of the company. I think the chairman just talked about how the long term studies are turned up. So I think looking at a very short short term lens I think we can’t decide about the brand positioning. You are aware we have Rio, we have Havel. So I think within those segmentation we’ll play but just because there could be volumes in the lower end of the market and we even don’t know the data is not really supporting that. So I think in a bank position which has been painstakingly built over decades something you can’t really tinker with you see based on particular quarter or a signality this I think will continue to sort of support.
Yes, there will be strategies how we play in every segment but not necessarily it could be played with a single brand architecture and that’s something in the market. You are also aware how we are doing the same. There will be more clarity in the in the future. We will also be coming through. We are also observing market very closely and but clearly there is a ethos which brand stands for and I don’t think that should be altered. Appeared during some quarterly considerations.
Achal Lohade
No, understood. Just to clarify Rajiv Ji the question was more from an annual stroke medium term perspective not really quarter at all. Because I.
Umang Mehta
Yeah,
Achal Lohade
I just wanted to clarify, is there a, you know, given, given the positioning, what we have given the category, the subsegment growth within the segment, you know, within a category, is there a constraint in terms of growing at a higher pace and there is a price difference gap between us and other brands have widened. Is there a case for that? I was more coming from that perspective.
Natasha Jain
No. Maybe you could write. But I hope you appreciate this something what we do every day and based on, as I said, brand ethos are built over decades, even year actually is nothing in the overall history of a business and the brand. Yes, I think your point understood. But I think this is something we evaluate very closely. That much we can assure you.
Achal Lohade
Fair point. And just a clarification. Anar, you know, in the past calls you did highlight, you know, there is a possibility of over 2 percentage point improvement in margin over medium term. You know, given what you have kind of highlighted in the call about renewed investments in the R D and the anp. Is there a change in that particular thought or, you know, that remains as is?
Unidentified Participant
No, that remains as is because we are continuing to, you know, wanting to be more efficient of get operating leverage out of better volumes. See, the whole investment behind innovation and brand building would be to put in more innovative products at a premium to the consumer and hence get better margins for the company. So again, as I said, short term there may be some pain, but long term the whole idea is to have better growth and profitability through growth. Also operating leverage will become
Achal Lohade
Understood. Thank you so much for your answer, sir. Wish you all the best.
Unidentified Participant
Thank you.
Operator
The next question comes from the line of Pratik Singh with Helios. Please go ahead. Pratik, your line has been unmuted. Please go ahead with the question. Pratik Singh, your line has been unmuted. Please go ahead with your question. As there is no response, we’ll move on to the next question. It’s from the line of Natasha Jain with Philip Capital. Please go ahead.
Renu Baid
Thank you so much for the follow up. I just wanted to check you had said in terms of cables, the volume growth is 6% and pricing is at. I mean the value growth is at 14%. So just trying to do the math here. Is it just 8% price hike that you’ve taken? I think relatively copper has substantially increased and even aluminum if I see even on a yoy basis,
Unidentified Participant
This is what we are seeing over the quarter on quarter. And if you recall there was actually a dip in copper in the month of February. The entire Increase that you’re seeing is post war that has actually started increasing. So. Yes. So overall, cables and volumes, cable and wire, 6% volume growth and 14%.
Renu Baid
So 6% volume growth is year on year, correct?
Unidentified Participant
Yeah, that’s right.
Renu Baid
And that, that would leave us with 8%. All right, sir. Okay, thank you so much.
Operator
The next question comes from the line of Ashish Kanodia with Citi. Please go ahead.
Ashish Kanodia
Yeah, thank you for the opportunity. So the first question is again on the cost side and investment in talent and capacity building. When we look at the fixed cost, and this is, you know, across segments, while FY25, you know, there was an increase in fixed cost as you were investing in FY26, barring cables and wires, we have seen the fixed cost being broadly flat across all other segments and cable. And while partly is maybe because of the capacity addition. So when you look at FY27, while, you know, as you said, you know, revenue is very difficult to forecast revenue here.
But from a cost point of view, do you see that FY27 is also going to be very similar to what we have seen in FY26 whereby fixed cost maybe increase in cable and wire because of capacity addition, but other segments remains broadly where they are or maybe just in line with inflation. Or do you think that because of 526 have not seen major investment. So 27 could see a bump up in investment across segments?
Unidentified Participant
Yeah, there will be some investment across segments. So this could be especially of a cable demise in the others or not. But there will be a balanced approach across all segments. However, last year also we said this year also we’ll try and get more operating leverage which means revenue growth should outpace the expenses except in advertising and promotions where we are taking cautious decision to up our expense.
Operator
Yes, sir. The current participant has been disconnected.
Unidentified Participant
Okay.
Operator
Yes, ladies and gentlemen, that was the last question for today. I now hand the conference call over to the management for closing comments.
Unidentified Participant
Thank you very much everyone for joining in to the investor call for Havells India Limited. And thank you Monk for organizing this. Thank you.
Operator
Thank you on behalf of Aval India Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.