As India’s demand for electrical goods rises, Havells and Polycab are emerging as key players. Both companies operate in the FMEG space, but differ in product focus and growth strategies. Here’s a quick look at how they stack up financially and operationally.
1. Havells India
Havells India Limited stands out as a top player in the Fast Moving Electrical Goods (FMEG) sector and is a significant force in power distribution equipment, boasting a robust global presence.
The company has carved out a strong market position with an extensive product lineup that features everything from circuit protection devices and cables to motors, fans, modular switches, home appliances, air conditioners, water heaters, power capacitors, and lighting solutions tailored for a variety of uses.
The key sources of income for Havells come from sales of household appliances and industrial electrical goods. The Havells galaxy provides a wide variety of products for commercial businesses as well as for home requirements.
Havells India reported a consolidated revenue of Rs 21,778 crores in FY25, up 17.13 percent from Rs 18,590 crores in FY24. On a year-on-year basis, revenue increased 20.27 percent to Rs 6,544 crores in Q4 FY25 from Rs 5,442 crores in Q4 FY24. On a quarterly basis, revenue rose 33.84 percent from Rs 4,889 crores in Q3 FY25.
The company reported a net profit of Rs 1,470 crores in FY25, reflecting a 15.65 percent increase from Rs 1,271 crores in FY24. In Q4 FY25, net profit grew 15.66 percent year-on-year to Rs 517 crores from Rs 447 crores in Q4 FY24, and jumped 86.33 percent on a quarterly basis from Rs 278 crores in Q3 FY25.
The electrical business contributed Rs 4,662 crores, with cables leading at Rs 2,169 crores, followed by electrical consumer durables at Rs 996 crores, switchgears at Rs 691 crores, lighting and fixtures at Rs 436 crores, and others at Rs 370 crores. Additionally, Lloyd Consumer generated Rs 1,870 crores during the quarter.
Leading brokerage firm ICICI Securities has given a “Buy” rating with a target price of Rs 1,935 per share, signalling an upside potential of 22.77 percent from its CMP.
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2. Polycab India
Polycab India Limited stands out as a top manufacturer of wires and cables under the POLYCAB brand, catering to both local and global markets. Their impressive lineup features power, control, solar, communication, and specialty cables, as well as fans, lights, switches, switchgear, solar solutions, and home appliances. Additionally, the company takes on EPC projects focused on power distribution and electrification, all backed by a robust network of retailers and distributors.
Polycab India mainly earns from wires and cables, with some revenue from electrical goods and other products. It serves both businesses and consumers, operates in India and abroad, and grows through a strong network and focus on premium products.
Polycab reported a consolidated revenue of Rs 22,408 crores in FY25, up 24.27 percent from Rs 18,039 crores in FY24. On a year-on-year basis, revenue rose 24.92 percent to Rs 6,986 crores in Q4 FY25 from Rs 5,592 crores in Q4 FY24. Sequentially, revenue increased 33.63 percent from Rs 5,226 crores in Q3 FY25.
The company reported a net profit of Rs 2,046 crores in FY25, marking a 13.46 percent increase from Rs 1,803 crores in FY24. In Q4 FY25, net profit rose 32.77 percent year-on-year to Rs 734 crores from Rs 553 crores in Q4 FY24, and was up 58.19 percent quarter-on-quarter from Rs 464 crores in Q3 FY25.
In Q4 FY25, the wires & cables division contributed Rs 5,920 crore, the FMEG segment Rs 469.2 crore, and the EPC segment Rs 602.8 crore to the topline.Leading brokerage firm Nuvama has given a “Buy” rating with a target price of Rs 7,410 per share, signalling an upside potential of 21 percent from its CMP.
Conclusion
Polycab stands out in terms of revenue and profitability, largely thanks to its stronghold in the cables market. On the other hand, Havells boasts a more varied portfolio, showcasing consistent growth and a solid brand reputation. While both companies are in a good position, Polycab seems to have a slight advantage when it comes to financial performance. However, an investor must look at its future growth prospects before investing.
Written by Satyajeet Mukherjee
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