Why Did Crompton's Q2 Net Profit Plummet by 41% to Rs 75 Crore?
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Synopsis
Crompton Greaves Consumer Electricals Limited has faced a significant setback with a 41% drop in net profit for Q2 FY26. This decline raises questions about the company’s performance amidst a challenging market. Explore the details behind this financial downturn and the implications for the future of the firm.
Key Takeaways
- 41% YoY decline in net profit to Rs 75.42 crore.
- Total revenue of Rs 1,928.96 crore with year-on-year growth.
- Significant decrease in expenses to Rs 26.78 crore.
- Growth in solar rooftop business with Rs 500 crore in new orders.
- Stock price fell 2.01% post-earnings announcement.
Mumbai, Nov 6 (NationPress) Crompton Greaves Consumer Electricals Limited disclosed a staggering 41% year-on-year (YoY) drop in its consolidated net profit for the July-September timeframe (Q2 FY26), amounting to Rs 75.42 crore. In the same quarter last year (Q2 FY25), the electrical goods manufacturer reported a profit of Rs 128.07 crore.
The total revenue for this quarter was Rs 1,928.96 crore, reflecting an increase of 15.4 crore YoY from Rs 1,913.53 crore. However, there was a sequential revenue decline of over Rs 93 crore or 4.6% from Rs 2,022.05 crore, with net profit dropping 39% from Rs 123.90 crore in the previous quarter (Q1 FY26).
In contrast, the firm’s total expenses for Q2 FY26 substantially decreased to Rs 26.78 crore, down from Rs 42.67 crore in Q2 FY25 and Rs 42.19 crore in Q1 FY26.
The electrical consumer durables segment led the revenue generation this quarter with Rs 1,371.16 crore, followed by butterfly products at Rs 283.35 crore and lighting products at Rs 261.06 crore.
“Despite facing a challenging market, our diverse product range has shown resilience, particularly with strong performance in pumps, small domestic, and kitchen appliances. We are optimistic that GST 2.0 will serve as a significant catalyst for consumption, positively influencing the durables segment over time,” stated Promeet Ghosh, MD and CEO of the company.
“During the current quarter, our solar rooftop division secured its inaugural order of Rs 52 crore, followed by the largest order ever of Rs 445 crore, totaling Rs 500 crore and 50,000 units. These contracts are anticipated to greatly enhance our direct-to-consumer business and signify the onset of a new growth avenue, supported by our proven execution capabilities and robust supply chain,” Ghosh added.
Following the disappointing Q2 earnings, the company’s shares saw a decline, closing at Rs 277.55, down 2.01% on the NSE.
Point of View
It is crucial to analyze the implications of Crompton Greaves' financial results. The significant decline in net profit highlights the challenges faced by companies in adapting to market dynamics. We stand by our commitment to delivering unbiased, insightful analysis that empowers our readers to understand these developments.
NationPress
06/11/2025
Frequently Asked Questions
What was Crompton's net profit for Q2 FY26?
Crompton Greaves reported a net profit of Rs 75.42 crore for Q2 FY26, marking a 41% decline year-on-year.
How much did Crompton's total revenue change?
The total revenue for Crompton in Q2 FY26 was Rs 1,928.96 crore, which is an increase from the previous year but a decline from the previous quarter.
What factors contributed to the decline in profit?
The decline in profit can be attributed to various market challenges and a decrease in sequential revenue despite an increase in total revenue year-on-year.
Did Crompton secure any new orders in Q2 FY26?
Yes, Crompton's solar rooftop business secured its first order of Rs 52 crore and the largest order of Rs 445 crore, totaling Rs 500 crore.
How did the stock perform after the earnings report?
The company's stock closed lower at Rs 277.55, down 2.01% on the NSE following the release of the Q2 earnings report.
