Crompton margin slips sequentially despite 11.20% revenue growth
Year-on-year profit growth benefited from operating leverage, but cost pressure in lighting and pumps weighed on the quarter-on-quarter margin.
Filed 06 Aug 2026, 16:32 IST · after market close · Crompton Greaves Consumer Electricals Ltd (CROMPTON)
Key takeaways
- Standalone revenue rose +11.20% year on year, while operating profit grew faster at +17.10% as operating margin improved 0.52 percentage points.
- Sequential operating margin fell 1.86 percentage points to 10.29% because revenue declined -2.92% while expenses fell only -0.87%.
- Other income contributed 10.14% of standalone pre-tax profit, making reported earnings partly dependent on non-operating income.
Price around the results
Year-on-year growth outpaced the cost base
Crompton's standalone revenue grew +11.20% year on year, while expenses increased +10.56%, lifting operating margin by 0.52 percentage points and operating profit by +17.10%. Net profit rose +12.12% to Rs 140.32 cr, broadly tracking the +12.52% increase in pre-tax profit. Sequentially, revenue fell -2.92% and operating profit declined -17.74% from Q4FY26.
Sequential margin pressure came from slower cost reduction
Expenses declined only -0.87% sequentially against the -2.92% revenue fall, narrowing operating margin by 1.86 percentage points. Management said lighting margins were affected by cost inflation in B2B, including pre-contracted orders carrying elevated commodity costs; it also cited commodity inflation and supply-chain issues in pumps, while fan performance was affected by supply constraints. Other income was 10.14% of pre-tax profit, while the tax rate was 25.73%, only 0.26 percentage points above the year-ago level.
Margin recovered from the trough but remains below the sector median
The margin trend improved from 7.97% in Q2FY26 to 10.49% in Q3FY26 and 12.15% in Q4FY26, before slipping to 10.29% in Q1FY27; this is a sequential reversal rather than a third straight decline. Crompton's margin was 3.01 percentage points below the 13.30% median for the 96 Consumer Discretionary peers that had reported the quarter.
BLDC and new categories shaped management's agenda
Management said the BLDC portfolio grew approximately 44% and reached its highest quarterly sales, with new launches such as Elevate and Fluido gaining traction. The company said it rolled out B2C solar pumps in Q1FY27 and launched 57 projects across categories.
No immediate market reaction after the post-close filing
The standalone results were filed after market close, so there is no post-results share-price move to assess yet. Across eight prior result reactions, the stock rose six times and fell twice, with a median absolute move of 1.46%, providing the relevant historical response range.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,022 cr | ₹2,083 cr | -2.92% | +11.20% |
| Other income | ₹19 cr | ₹-703 cr | — | -13.11% |
| Expenses | ₹1,814 cr | ₹1,830 cr | -0.87% | +10.56% |
| Operating profit | ₹208 cr | ₹253 cr | -17.74% | +17.10% |
| Operating margin (%) | 10.29% | 12.15% | — | — |
| Interest | ₹10 cr | ₹9 cr | +4.28% | +4.51% |
| Depreciation | ₹29 cr | ₹27 cr | +7.73% | +26.70% |
| Profit before tax | ₹189 cr | ₹-485 cr | — | +12.52% |
| Tax | ₹49 cr | ₹51 cr | -5.48% | +13.68% |
| Net profit | ₹140 cr | ₹-537 cr | — | +12.12% |
| EPS (₹) | ₹2.18 | ₹-8.34 | — | +12.37% |
Operating margin of 10.29% compares with a Consumer Discretionary sector median of 13.30% across 96 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The BLDC portfolio grew approximately 44% and delivered the highest quarterly sales.
- The company reported strong traction in new BLDC launches including Elevate and Fluido.
- Lighting recorded strong double-digit growth in both B2C and B2B segments.
- Butterfly reported broad-based growth across offline and online channels.
Guidance & outlook
- The company aims to build future growth categories within a total addressable market of Rs. 160k–200k crore.
- The company aims to create a future-ready go-to-market model to accelerate its multi-category portfolio across all channels.
Expansion
- The company rolled out its business in B2C solar pumps during Q1 FY27.
New products
- The company launched Hyperboost BLDC, an e-commerce-exclusive model.
New initiatives
- The company has begun a go-to-market transformation journey based on a strategic study conducted by BCG.
- The company launched 57 new projects across categories in Q1 FY27.
Competition
- The pumps business gained market share across categories during Q1 FY27.
- Butterfly gained market share in mixer grinders, pressure cookers and glass cooktops.
Problems & risks
- Fan performance was affected by supply constraints during Q1 FY27.
- The pumps business navigated commodity inflation and supply-chain headwinds during Q1 FY27.
- Lighting margins were affected by cost inflation in B2B business.
- Pre-contracted B2B rates carrying elevated input costs from commodity inflation reduced overall lighting margins.
- The consumer durables industry faced inflationary and regulatory challenges in 2026.
What to watch
- Whether operating margin remains above 10.29% after the sequential decline of 1.86 percentage points.
- Whether expenses continue to grow more slowly than revenue, as they did year on year at +10.56% versus +11.20%.
- The next reported performance of the BLDC portfolio after management cited approximately 44% growth in Q1FY27.