Crompton Greaves Q1 FY27 Results Analysis: EBITDA Margin Expands 21 bps, Revenue Grows 12%

Crompton Greaves Consumer Electricals Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,235.02 Cr (+11.84% YoY) and PAT growth of +14.87% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 11.84% YoY with all three segments in double digits. EBITDA margin expanded 21 bps YoY, the first expansion in several quarters, driven by operating leverage and lower finance costs. However, commodity cost pressure and low Butterfly margins remain watch items.

Key Investment Insights

Key Positives

• Revenue grew 11.84% YoY to Rs.2,235.02 Cr
• EBITDA margin expanded 21 bps YoY to 10.04%, first YoY expansion in several quarters
• PAT attributable to owners grew 14.87% YoY to Rs.140.48 Cr
• All three segments delivered double-digit revenue growth: ECD +10.58%, Lighting +15.39%, Butterfly +18.36%
• Finance costs declined 33.61% YoY to Rs.9.70 Cr, reflecting deleveraging
• Won two solar pump orders worth Rs.94.76 Cr from MSEDCL in July 2026

Risk Factors

• Material cost as % of revenue rose 92 bps YoY to 68.77%, compressing gross margins
• Butterfly segment margin remained low at 4.22%, flat YoY and down from 6.16% in Q4FY26
• Channel inventory built up significantly (changes in inventories -Rs.140.17 Cr), indicating possible excess stock
• EBITDA margin of 10.04% is well below Q4FY26's 11.86% exit rate, though partly seasonal