# 1. Financial Performance ## A. Key Figures * **Standalone Revenue:** **₹1,819 Cr** (Q1 FY26) · **EBIT:** **₹155 Cr** (8.5% margin) · **PAT:** **₹125 Cr** (6.9% margin) * Lighting Segment Revenue: ₹232 Cr · EBIT: ₹29 Cr (+41% YoY) · Margin: 12.6% (+370 bps) * **Debt Repayment:** **₹300 Cr** NCD fully repaid, achieving zero-debt status ## B. Revenue & Growth * **Outperformance Amid Disruptions:** Q1 results demonstrated resilience and agility, outpacing industry trends and gaining market share despite adverse weather conditions. * **Lighting Segment Strength:** Revenue held steady amid price erosion, while strong double-digit EBIT growth and significant margin expansion reflect successful mix optimization. ## C. Profit Margins * **Margin Discipline:** Appliance margins are healthy but not exceptional; fan, pump, and appliance businesses show similar margin trends, with no segment disproportionately under pressure. * **Product Mix as Catalyst:** Lighting margin gains driven by strategic shift away from low-margin B2C bulbs and batteries toward higher-value panels, flood lights, and outdoor lighting. ## D. Balance Sheet * **Zero-Debt Milestone:** Full repayment of NCD achieved, reinforcing financial discipline and strengthening the net cash position. --- # 2. Segment & Product Performance ## A. Key Figures * **Butterfly Revenue:** **₹187 Cr** (+3%) * **Butterfly EBITDA:** **+39% YoY** * **Large Kitchen Appliances Sales:** **₹15 Cr** * **Solar Pumps Order:** **₹101 Cr** single order (Maharashtra Energy Development Agency) ## B. Lighting Segment * **Stabilizing Performance:** Lighting revenue stabilized amid pricing pressures, with **panels now the largest segment**, supporting margin sustainability through higher-value product mix. * **Strategic Repositioning:** B2C lighting shifted toward **outdoor and decorative offerings**, emphasizing designer-led, premium products to drive value over volume. * **Market Share Gains:** Despite flat revenue, lighting outperformed industry trends, while **fan segment gained share** despite overall category decline. ## C. Butterfly Brand * **Profitability Expansion:** Strong EBITDA growth on **favorable mix and operational efficiencies**, with market share gains in core categories—mixer grinders, pressure cookers, and glass tubes. * **Brand Transformation:** Butterfly launched a **strategic rebranding** targeting millennials and younger demographics, featuring a **fingerprint-to-butterfly identity** to symbolize personal evolution and brand renewal. * **Growth Trajectory:** Brand refresh, **40 new SKUs**, and e-commerce strength are accelerating expansion beyond South India, with clear milestones for non-South market share growth. ## D. Pumps & Solar * **Solar Pumps Momentum:** Business recorded **robust YoY revenue growth and a doubling of order pipeline**, anchored by a **landmark ₹101 Cr order** from Maharashtra. * **Scalable Model:** Solar pump operations follow a **single-partner installation model**, ensuring end-to-end accountability despite undisclosed sourcing and margin details. --- # 3. Order Book & Demand ## A. Key Figures * **Solar Pumps Growth:** **Doubled** YoY * **B2B Lighting Volume Growth:** **Double-digit** increase ## B. Solar Pump Orders * **Strong Momentum & Policy Tailwinds:** Solar pump business doubled YoY, with potential for sustained expansion as the segment evolves into a national-level initiative for agricultural power replacement. * **Resilient Demand:** Industry and company-level growth persisted in Q1 despite seasonality, signaling durable adoption trends beyond peak cycles. ## C. B2B Project Wins * **Commercial Project Strength:** B2B lighting delivered double-digit volume growth, driven by wins in industrial projects across commercial, flood, high mast, and poles categories. * **Early-Cycle Recovery Signs:** Green shoots observed in ECD demand for pumps and fans, reflecting broader industrial recovery—though Crompton’s relative outperformance remains unquantified. ## D. Channel Inventory * **Improving Channel Health:** Fan inventory is beginning to clear, supporting better channel sentiment; shared distribution networks mean inventory normalization can positively impact multiple product lines. * **Positive Long-Term Demand Outlook:** Management sees sustained growth potential across categories, backed by ongoing government and infrastructure initiatives. --- # 4. Capacity & Expansion ## A. Key Figures * **Greenfield Capex:** **₹350 Cr** (India + international markets) (2–3 years) ## B. Greenfield Unit Capex * **Transformational Expansion:** Strategic capacity development underway with a new greenfield unit to serve domestic and global markets, reflecting long-term growth ambitions. * **Execution Timeline:** Project launch expected to be announced "soon enough," with capex deployment planned over the next 2–3 years. ## C. Rooftop Solar Entry * **New Vertical Launch:** Company formally entering rooftop solar business with execution framework, team, and supply chain in place; commercial orders anticipated shortly. * **Solar Box Momentum:** **Fourfold growth** in solar box business over one year underscores early traction, with scaling plans underway in current fiscal, backed by strong capabilities in technology and SITC. * **Market Opportunity:** Entry into rooftop solar targets a large addressable market with potential for **meaningful market share**, while expansion into large durables remains off the table for now. --- # 5. Product & Innovation ## A. Key Figures * **Sustainability Target:** **50% reduction in Scope 1 & 2 emissions by 2035** · **60% reduction in emission intensity per unit of sales by 2035** * **Product Footprint Goal:** **50% reduction in GHG footprint by 2035** · **60% reduction in product-level GHG footprint** ## B. New Launches * **Sustainability as Strategic Driver:** Core innovation and branding efforts now anchored in environmental responsibility, with formalized long-term decarbonization targets. * **Technology Leadership:** Launched **industry-first 2000 TDS-certified anti-scaling tech** in water heaters, reinforcing technical differentiation in large appliances. * **Brand Transformation:** Butterfly introduced **"celebrating change"** platform with **new logo** and **Idea First series (40+ SKUs)**, targeting premiumization across cookware and kitchen appliances. ## C. Premium Portfolio * **Innovation-Led Share Gain:** Premium fan launches (**Fluido, Niteo, Nucleoid**) drove outperformance and market share gains despite **seasonal headwinds**. * **Sustainable Scale Strategy:** Confidence in delivering **eco-friendly products at accessible price points**, leveraging existing tech and scale to support sustainability ambitions. --- # 6. Risks & Seasonality ## A. Subsidy Dependency * **PM-KUSUM Scheme Timeline:** The solar pump business benefits from the **PM-KUSUM subsidy**, set to expire in **March 2026**, though management expects continued growth post-subsidy due to strong underlying demand for reliable farm power and energy sustainability. --- # 7. Guidance & Outlook ## A. Key Figures * **EBITDA Margin Guidance:** **+100 bps** full-year improvement expected despite weak Q1 ## B. Full-Year Growth * **Resilient Outlook:** Despite a slow start with single-digit quarterly growth, management maintains confidence in achieving **double-digit full-year growth**, citing positive exit momentum. * **Near-Term Recovery:** Unseasonal headwinds in seasonal categories expected to be largely contained to Q1, with green shoots of recovery seen in Q2. * **New Category Momentum:** Ramp-up of new categories remains on track, supported by favorable macro demand trends. * **ECD Segment Cautious Optimism:** No formal full-year guidance provided, but management anticipates recovery broadening across the industry.