Havells India Limited (NSE: HAVELLS) Q4 2026 Earnings Call dated Apr. 22, 2026
Corporate Participants:
Anil Rai Gupta — Chairman and Managing Director
Analysts:
Umang Mehta — Analyst
Ravi Swaminathan — Analyst
Natasha Jain — Analyst
Rahul Agarwal — Analyst
Aniruddha Joshi — Analyst
Balasubramanian A. — Analyst
Siddhartha Bera — Analyst
Aditya Bhartia — Analyst
Renu Baid — Analyst
Praveen Sahay — Analyst
Pulkit Patni — Analyst
Achal Lohade — Analyst
Ashish Kanodia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q4 FY ’26 Earnings Conference Call of Havells India Limited [Operator Instructions].
I now hand the conference call over to Mr. Umang 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 Q4 FY ’26 and FY ’26 Results Conference Call of Havells India Limited. We have with us today the senior management represented by Mr. Anil Rai Gupta, Chairman and Managing Director; Mr. Rajesh Kumar Gupta, Whole-Time Director and Group CFO, Mr. Amit Kumar Gupta, Whole Time Director; and Mr. Rajiv Goel, 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&A.
Thanks, and over to you, Anil sir
Anil Rai Gupta — Chairman and Managing Director
Thank you. Thanks. Good on for ending today’s call. We hope you would have reviewed the results and I will now walk you to the key heads order overall normal cost just to who was backed by my start to the season. Momentum in Industrial & Infrastructure lavatories remain strong. work in retirees cost driven higher arising from recent global disruption. We have stepped up our advertising investments and brand ability still tentative. On the profitability front, margins held well, except Lloyd, which was impacted due to lower revenues. We can toast pressure cat price actions have also been initiated. Our renewable energy initiatives continue to scale.
Investment — this investment allows us to leverage Gold solar module manufacturing capabilities to expand especially in indeed of INR283 crores on this investment. The gain is reported under other income for the quarter. So resident there — we have invested in setting up a new refrigerator plant at Gilat. During the quarter, the capacity was commissioned and a refreshed product folio trillion of sister mass minds of pickup in demand for cooling products. We remain optimistic on our revival of summer demand while closely tracking in and end. We now move to Q&A.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions]. The first question comes from the line of Ravi Swaminathan with Avendus Spark. Please go ahead.
Ravi Swaminathan
Hi sir. Thanks for taking my question. My first question is with respect to the Cables & 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 the 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 that.
Anil Rai Gupta
Yeah, thank you very much.
Ravi Swaminathan
Sorry, your voice is cracking a bit, sir.
Anil Rai Gupta
Okay. I’m a bit surprised. Can you hear me now?
Ravi Swaminathan
Yeah, it’s better.
Anil Rai Gupta
On an overall growth trend payable when the industrial cable segment has grown much faster than the domestic wire segment was in the are the is the thing in Austria, a very high base last year quarter two, saw a major opinion and was seen in. There are some amount of price correction or in copper before the war and overall loans down the quarter. So you see wire segment remained flat, but the cable segment has been stopped.
Ravi Swaminathan
Okay. And with respect to the other — a couple of other segments, one is AC and France 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?
Anil Rai Gupta
Impact to be able to further increase happened due to the energy efficiency ratings change during the quarter. And then there No, Royal happening toward February ’24, there is increase of raw material prices in other — so we would start from until April. There is calibrated price increases happening not only in France and but in our order series. So there given rights.
Ravi Swaminathan
Thanks sir.
Operator
Thank you. The next question comes from the line of Natasha Jain with PhillipCapital. Please go ahead.
Anil Rai Gupta
I think ceding here is that right?
Operator
Yes, just a second. I’ll connect on that.
Anil Rai Gupta
Okay.
Operator
Yes, I can continue.
Natasha Jain
Yeah, can you hear me?
Operator
Yes.
Natasha Jain
Should I go ahead with my question?
Operator
Yeah, ma’am.
Natasha Jain
Yeah, thank you. Since your line was not clear. I will 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 would be attributed to inventory gains? And is there any mix change that has led to such a sharp margin despite volume degrowth?
Anil Rai Gupta
I think 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 volume growth was only 6%, not flat, but volume growth of 6%. And — but — we have seen slight degrowth in domestic wire segment, but much higher growth in the industrial segment.
Natasha Jain
Understood. Okay. So my second question is on Lighting. Now revenue there again has been broadly flat, but margins margin has increased extremely sharply. — your contribution stands at 37% and you’ve mentioned in your presentation that the long-term average is 32%. So does that mean that there is some one-off even in lighting and that should normalize to 30% level going forward?
Anil Rai Gupta
Yeah, 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 one can say, on an average, you can expect 32%, 32%. But sometimes the first three quarter releases also happened 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%.
Natasha Jain
And sir, this is even despite the fact that ASP decline has stabilized, that is what is mentioned in the PPT.
Anil Rai Gupta
That’s right. That’s right.
Natasha Jain
Got it. And sir, one last quick question. In terms of Lloyd fourth quarter, we understand that the summer was bad and in fact, it continued probably to beginning of April. Could you throw some color how the channel inventory right now is? And a little color on sell-in and sell-out both.
Anil Rai Gupta
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 inventory at the. Understood. Thank you so much, sir. All the best. Thank you.
Operator
Thank you. The next question comes from the line of Rahul Agarwal with Ikigai. Please go ahead.
Rahul Agarwal
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?
Anil Rai Gupta
In today’s environment, what do you expect an answer from me. We are just looking at month-to-month, 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 you operate. maybe this is for other people’s questions also.
At this point in 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 mode, 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 continue 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 now.
Rahul Agarwal
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?
Anil Rai Gupta
As I said, it’s right now, I would not be — it would not be right for me to give any numbers.
Rahul Agarwal
Okay, okay, no problem sir. 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 — the entire absorption is actually getting done from Hal side? Is that understanding correct?
Anil Rai Gupta
We are striving to do that. Again, we are in a — 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’ll just play a balancing area.
Rahul Agarwal
Right, sir. And last question, sir, on the aftersales service. My sense is we’ve seen a lot of premium product launches across all segments from Havells over the last six months. when you 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 aftersales perspective is largely the same thing 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?
Anil Rai Gupta
I think these are very operational issues, which we continue to ensure that we will give the best service to the consumer. But these are very operational issues and part of — one part of the business that I think there’s no point of us to spend time on this on this call. But the — what you are saying is our objective is to continue to give the best service as well as best customer experience always. But it’s good to know that you noticed that average is coming out with premium products. That is a reflection of our continued investment in innovation.
Rahul Agarwal
Right, sir. Thank you so much. I’ll get back in queue. All the best.
Operator
The next question comes from the line of Aniruddha Joshi with ICICI. Please go ahead.
Aniruddha Joshi
Yeah, so thanks for the opportunity. And the solar business, so we have seen almost 48% growth in other segments. And given the EBIT margin has also seen a good expansion. So if you can share more details on the solar business in have reached in a way, normalized run rate, or there is still good scope to potentially grow in this business? I mean how long this growth rate can sustain? And again, margins of solar business? Have they reached to an optimal level or there is 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 refrigerator. So how it would have panned out because probably there was no excess sale in December for these products. So have they also seen some impact on volumes, or is there a healthy growth in these products?
Anil Rai Gupta
Yeah, thanks. So on 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 Gondi and because of the assured supplies, more capacity that we have. we’re 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 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 — there was a change in the B 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 will the impact is so high of monsoon this time also that we are still seeing some impact of monsoon.
Anil Rai Gupta
It’s difficult to predict what will happen in the monsoon. But you are right, the last year was a low base. So we should be seeing good growth in this year.
Aniruddha Joshi
Okay. And any internal target estimate that the company will be working on the summer products that you can share with us?
Anil Rai Gupta
I think we do not give any guidance on those numbers. And frankly, in this scenario, we are hoping for a faster growth. As I’ve already said in summer projects, last year was a very low base. So we are hoping to get a good growth 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?
Anil Rai Gupta
No, I think we would like to see it that in many product ranges that ranges between 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 Balasubramanian with Arihant Capital. Please go ahead.
Balasubramanian A.
Good evening sir. Thank you so much for the opportunity, sir. trade receivables fallen drastically from INR1,254 crores to INR782 crores, almost even data days it used to be 20 or 21 range in the last four years, but right now it came to 30 days. So I’m trying to understand — this is majorly because of faster collections are changing payment terms with these distributors? And how do we understand in upcoming years?
Anil Rai Gupta
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 take them something you see with the exception happening in this particular March quarter.
Balasubramanian A.
Okay, sir. Sir, on the ECD side, in Q3 is majorly described as largely Yes. Sir, on the CV side, in Q3, it’s majorly described largely volume driven, not stressed. Price level. But in Q4, we saw volume decline. But there is no major price reversal. So I’m trying to understand if we could share volume growth or degrowth for fans, water heaters and FR for Q4.
Anil Rai Gupta
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.
Balasubramanian A.
Okay, sir. Thank you.
Operator
Thank you. The next question comes from the line of Siddhartha Bera 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 until now and how much is required to sort of go back to that double-digit contribution margin level which we had last year?
Anil Rai Gupta
Work in progress.
Siddhartha Bera
Any price hike sir, if you can quantify how much is more needed, or how it’s taken?
Anil Rai Gupta
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.
Anil Rai Gupta
So right now, whatever capacity has got added, we’ve been still operating at high capacity utilization. and more capacities will come up, as you like we said during the year. So hopefully, by the end of this year or early next year, first quarter, we’ll be having the entire capacity, which are in.
Siddhartha Bera
Understood sir. Okay, thanks a lot. I’ll come back in queue.
Operator
Thank you. The next question comes from the line of Aditya Bhartia with Investec. Please go ahead.
Aditya Bhartia
Hi, good evening, sir. So given that some of these price increase announcements for fans and rooms could have been made by March end, did we not see any element of prebuying 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?
Anil Rai Gupta
On the first part, yes, there was some prebuying in March, especially in the cooling products. And — but generally, that is the case also in most of the years 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. We — our major focus is to gain — continue to gain market shares and get the tailwinds of this industry. And difficult to say what’s the final margins will be, but they will continue to improve as you rightly said about the operating margin — operating leverage.
Aditya Bhartia
Perfect. That’s helpful, sir. Thank you so much.
Operator
The next question comes from the line of Renu Baid with IIFL Securities. Please go ahead.
Renu Baid
Yeah, hi, good evening, sir. Sir, 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 board across segments and categories. Do you think consumer offtake in broad is likely to remain slightly muted in the near term, in the next couple of quarters? And the entire pieces of expectation in recovery and consumption is getting prolonged.
Anil Rai Gupta
Yeah, I’ve not seen this kind of a price escalation in the recent past in recent memory. Usually, it happens, but it is not so and not across all product categories. Sometimes there are more fluctuations in the case and wires across tier or — so while we are very hopeful of the overall structural things which have happened within India as well as within Havells. But ultimately, it is — we are bound by the fact that the consumer can — consumer offtake can get affected if the price hike is too high. Let’s see how it pans out, let’s how the war and out. And hopefully, we should have some sight 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 be slightly challenging.
Anil Rai Gupta
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…
Anil Rai Gupta
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. Sir, looking at the capex spend in the last couple of years, we clearly stepped up our investment plans across manufacturing facilities, particularly cables and wires and Lloyd. So how should we look at the investment plans for fiscal ’27, ’28? Any notable segment you would want to highlight apart from the annual spend budgeted for the next two years?
Anil Rai Gupta
Yeah, I think by ’27, ’28 major expenses would — major capex would go into Cable & Vie, which is already panned out, and I think this is — a lot of that is happening in this financial year also INR80 crores — the rest is a big investment is going to be a new R&D center. And that will happen over the next two, two and a half years. The rest — there is no major new capex in the Lloyd segment.
Renu Baid
Got it. And just lastly, linked to the cables and wires. We recently gathered that one of the large player with presence on the cement side was folding into cables and base prepone 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?
Anil Rai Gupta
Yeah, I mean, generally speaking, cases in Myer, especially by — there has been a lot of consolidation in the past also from an organized or regional brand or small brands to organize that. More in more, this industry has absorbed newer players — and I think going forward also, companies which should continue to invest in innovation, brand building and distribution reach. So will be the winners in this segment. So hopefully, new players have also come with the right investments. They’ll definitely gain some market share because 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 energies and money in terms of distribution reach. across regions, not south broadly taken care of, how do you look to tackle the Western region in terms of penetration for Havells products, ex of cable and wire on the B2C side? And any particular areas you would want to highlight to filter gap?
Anil Rai Gupta
I would say that ever continues to invest not only in the Western region, but also certain parts of the southern markets like Tamil Nadu where our market shares are lower as compared to other markets. Those investments are going both in distribution but also localized brand building as well. So we are seeing good growth, if we actually break down this growth into those areas where we are investing everything towards, we are seeing good traction in these markets. So there is restore coming on.
Renu Baid
Thanks much and best wishes to you. Thank you.
Anil Rai Gupta
Thank you.
Operator
Thank you. The next question comes from the line of Praveen Sahay with PL Capital. Please go ahead.
Praveen Sahay
Yeah, thank you for opportunity. II have two questions. The first is, as you had highlighted, next — 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?
Anil Rai Gupta
When cable is also underground cables is something where we are investing where we were, to some extent, under investors. But in the past, our B2C B2B has remained between 75 to — hopefully, in the next couple of years, we should continue to grow even in the B2C segment, especially the growth opportunities. So definitely, there’s — I think there will not be a meaningful move from B2C to B2B.
Praveen Sahay
Okay. Okay. And the next question, sir, related to the switch gear. So if you highlighted that the margin impacted 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?
Anil Rai Gupta
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’ll continue to strive towards moving there. But I also said that our eyes will also be on retaining market share. It’s not only Neroli. — this is something which we have to see how it pans out.
Praveen Sahay
Why I asked that because that the growth for the entire year for sugar is also quite low. So it’s more focused on the growth the way forward or major target is to achieve our contribution margins.
Anil Rai Gupta
I think it will always remain a balance between growth and profitability.
Praveen Sahay
Thank you, sir, and all the best.
Anil Rai Gupta
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. Anil ji, 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, et cetera, in the current environment? That’s my question number one.
Anil Rai Gupta
Right. On the supply side, there have been a couple of — especially more on the production side. Those have been navigated as not to go to each detail. But those have been navigated on the raw material side as well as in the production side due to the gas supply. Going forward, we’ll continue to navigate those things. I think your question about the 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 we have already said, is innovation, brand distribution. We’ll do that — and 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. Sir, my second question is actually in relation to that only, which is we have about INR4,000 crores of capital now deployed in Llyod, 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? 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 Llyod.
Anil Rai Gupta
The biggest thing about any consumer-oriented brand builders, brand-oriented businesses, something where it’s an easier answer that you can’t really say, okay, if I have to fully utilizing the capacity have you down by price and start selling more. It doesn’t really happen as you can very well understand. It requires long-term investment in brand bilding.
So we — our focus 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 margins. So again, as I said, it — is everything put together, but everything has to come together in a 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 Lohade with Nuvama 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
Anil Rai Gupta
Can — I mean, generally, we don’t give product price growth rates, but fans, we have degrown in the entire year. So — and that fan waters — sorry, bans, basis and water cooler, where we have done. 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?
Anil Rai Gupta
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?
Anil Rai Gupta
Achal, the strategy of the company, I think the Chairman just talked about how the long-term settings have gone up. So I think looking at a very short-term land, I think we can’t decide about the brand positioning. You are aware we have Rio, we have have. So I think really low segmentation will 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 it’s a brand position, which has been painstakingly built over decades, something you can’t really incur which you see based on particular quarter or seasonality.
I think we’ll continue to sort of support. Yes, there will be strategies how we play in every segment, but not necessarily it could be played with the single brand architecture. And that’s something in the market, you are also aware of how we are doing the same. They’ve been more in the future will also be coming through. We are also observing market very closely. And — but clearly, there is into brand stands for. And I don’t think that should be altered purely on some quarter reconciliation.
Achal Lohade
No, understood. Just to clarify Anil Ji, the question was more from an annual stroke medium term perspective not really quarter at all. Because I yes. I just wanted to clarify, is there a — given the positioning that we have, given the category, the subsegment growth within the segment within the category, is there a constraint in terms of growing at a higher pace and there is a price difference gap between cars and other brands have widened. Is there a case for that? That was more coming from that perspective.
Anil Rai Gupta
No, maybe you would be right, but I hope you appreciate we something what we do every day. And based on, as I said, brand, it has built over decades, even here 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 value very closely. That’s what we can assure you.
Achal Lohade
Fair point. And just a clarification. Anil sir, in the past calls, you did highlight there is a possibility of over two percentage point improvement in margins over medium term given what you have kind of highlighted in the call about renewed investments in the R&D and the A&P, is there a change in that particular thought or that remains as is?
Anil Rai Gupta
No, that remains as is because we are continuing to wanting to be more efficient to 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 things. 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 answers, sir. Wish you all the best.
Anil Rai Gupta
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 thThe next question comes from the line of Prateek Singh with Helios. As there is no response, we’ll move on to the next question. It’s from the line of Natasha Jain with PhillipCapital. Please go ahead.
Natasha Jain
Thank you so much for the follow-up. I just wanted to share you had said in terms of sales, the volume — and pricing, is that — 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 Y-o-Y basis.
Anil Rai Gupta
No, this is what we are saying 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 we’re seeing is cost toward. So that has actually started increasing. So overall cables and volumes came the Myer 6% volume growth and 14%.
Natasha Jain
So 6% volume growth is year-on-year, correct?
Anil Rai Gupta
Yeah, that’s right.
Natasha Jain
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. 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 across segments, while FY ’25, there was an increase in fixed cost as you were investing. In FY ’20, barring cables and wires, we have seen the fixed cost being broadly flat across all other segments.
When we — and cable and will partly is maybe because of the capacity rice. — when you look at FY ’27, while, as you said, revenue is really difficult to forecast revenue here. But from a cost point of view, do you see that FY ’27 is also going to be very similar to what we have seen in FY ’26, whereby fixed costs may be increase in cable and buyers because of capacity addition, but other segments remains broadly where they are or maybe that’s in line with inflation, or do you think that because of ’26 have not seen major investments, so ’27 could see a bump up in investment across segments?
Anil Rai Gupta
Yeah, there will be some investment across segments. So this would be especially where a cable email the others are not. 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 excess growth, except in advertising and promotions where we are taking cautious decision to up our spend.
Operator
Yes, sir. The current participant has been disconnected.
Anil Rai Gupta
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.
Anil Rai Gupta
Thank you very much everyone for joining in to the investor call for Havells India Limited. And thank you, Umang, for organizing this. Thank you.
Operator
[Operator Closing Remarks]