• Demand momentum: Revenue grew about 18.25% and EBITDA increased over 24%, with ECD, lighting and Butterfly each delivering double-digit growth for a second consecutive quarter. Management attributed traction largely to underlying demand, innovation and stronger execution; e-commerce festive signals were positive, with general trade expected to pick up in the last 2 weeks of October.
• Cash flow and inventory: Operating cash flow was negative at roughly ₹240-odd crore versus ₹720 crore positive last year, while inventory was built up from March levels to cover winter demand, including geysers and fans. Management expects strong full-year cash flow, similar to recent years.
• Pricing and fans: Fans have seen about 14% to 15% price increases over the last 2 to 2.5 quarters, with another round in October; cost reductions through Unnati will continue, alongside pricing if needed. Management called this quarter the starting point for multi-quarter double-digit fan growth and said it aims to keep gaining share.
• Segment margins: Lighting revenue rose about 14.3%, while EBIT fell about 5% and margins dropped 250 bps due to commodity-affected pre-priced contracts; stabilization is expected end Q3, early Q4. Butterfly revenue grew about 16% but margin slipped to about 7.4%; investment in brand, stores, innovation and geographic expansion will continue, with operating leverage expected at scale.
• Investment and ambition: Capex is on track for an annual run rate of about ₹120 crore, mainly for innovation, factory tools, moulds, dies and some capacity expansion. The company aims to double its business in 5 years and reach about 12% EBITDA margin through premiumisation, pricing, cost capabilities and operating leverage.