Crompton Greaves Q2 profit rises 65 per cent to Rs 124.39 crore

MUMBAI: Crompton Greaves Consumer Electricals has switched on a stronger performance in the September quarter, with consolidated net profit rising 64.9 per cent year on year to Rs 124.39 crore, against Rs 75.42 crore in the corresponding quarter last year. The growth came alongside an 18.1 per cent increase in revenue from operations, although profit eased from the preceding quarter.

The company reported consolidated revenue from operations of Rs 2,263.29 crore for the second quarter of FY27, compared with Rs 1,915.57 crore a year earlier. Total income rose to Rs 2,280.84 crore from Rs 1,928.96 crore, while total expenses increased to Rs 2,113.91 crore from Rs 1,806.40 crore.

Profit before exceptional items and tax climbed to Rs 166.93 crore from Rs 122.56 crore in the year-ago quarter. Profit before tax stood at Rs 166.93 crore, compared with Rs 102.20 crore a year earlier, when the company recorded an exceptional item of Rs 20.36 crore. Earnings per share rose to Rs 1.85 from Rs 1.11.

However, the sequential picture was less buoyant. Consolidated revenue slipped from Rs 2,235.02 crore in the June quarter, while net profit declined from Rs 142.70 crore. Profit before exceptional items and tax also fell from Rs 191.31 crore, indicating that the year-on-year improvement came alongside a moderation in performance compared with the previous quarter.

For the first half of FY27, the company reported consolidated revenue from operations of Rs 4,498.31 crore, up from Rs 3,913.95 crore in the corresponding period last year. Net profit increased to Rs 267.09 crore from Rs 199.32 crore, while profit before exceptional items and tax rose to Rs 358.24 crore from Rs 288.65 crore.

Total income for the six months reached Rs 4,537.65 crore, compared with Rs 3,951.01 crore a year earlier. Total expenses rose to Rs 4,179.41 crore from Rs 3,662.36 crore. Earnings per share for the half year increased to Rs 4.04 from Rs 3.

The segment performance showed different rhythms across Crompton’s portfolio. Electric Consumer Durables remained the largest business, generating revenue of Rs 1,634.49 crore in the September quarter, up from Rs 1,369.29 crore a year earlier. However, the segment’s profit before exceptional items, tax and finance costs increased to Rs 189.48 crore from Rs 144.95 crore, while remaining below the Rs 237.17 crore recorded in the June quarter.

Lighting Products revenue rose to Rs 298.29 crore from Rs 261.06 crore in the year-ago quarter. Segment profit, however, slipped to Rs 38.53 crore from Rs 40.54 crore, though it improved from Rs 32.34 crore in the preceding quarter.

Butterfly Products, meanwhile, recorded revenue of Rs 330.51 crore, compared with Rs 285.22 crore a year earlier. Segment profit increased to Rs 24.58 crore from Rs 22.07 crore in the September 2025 quarter, marking a substantial improvement from Rs 8.95 crore in the June quarter.

Across the first half, Electric Consumer Durables generated revenue of Rs 3,388.63 crore, against Rs 2,955.54 crore a year earlier. Lighting Products contributed Rs 567.10 crore, up from Rs 494.02 crore, while Butterfly Products recorded Rs 542.58 crore compared with Rs 464.39 crore. The three segments together contributed to the company’s higher first-half revenue.

Cash flow, however, offered a more mixed picture. Crompton reported net cash outflow from operating activities of Rs 237.10 crore during the first half, compared with an inflow of Rs 55.02 crore in the corresponding period last year. Cash used in operations before tax stood at Rs 153.32 crore, against cash generated of Rs 124.31 crore a year earlier. The movement reflected working capital pressures, including an increase in inventories of Rs 325.45 crore and a rise in trade receivables of Rs 102.86 crore.

Investing activities generated net cash of Rs 344.83 crore during the half year, compared with Rs 323.98 crore a year earlier. Financing activities used Rs 237.96 crore, against an outflow of Rs 556.51 crore in the year-ago period. The company ended September with cash and cash equivalents of Rs 22.95 crore, down from Rs 153.18 crore at the end of March 2026.

The company’s consolidated balance sheet showed total assets of Rs 6,003.30 crore as at 30 September 2026, compared with Rs 6,082.55 crore at the end of March. Inventories rose to Rs 1,069.63 crore from Rs 744.18 crore, while trade receivables increased to Rs 1,188.37 crore from Rs 1,084.64 crore. Investments stood at Rs 506.18 crore, down from Rs 971.04 crore at the end of the previous financial year.

Crompton also announced changes to its senior leadership. Aruna Arulsingh was appointed head of legal and company secretary with effect from 16 October, and will take over as compliance officer from 17 October. Dipalok Choudhary was appointed head of internal audit and risk assurance, and designated senior management personnel, effective 16 October.

The unaudited results were approved by the board on 16 October. The consolidated financial statements include the results of subsidiary companies Butterfly Gandhimathi Appliances, Nexustar Lighting Project, Pinnacles Lighting Project and Crompton CSR Foundation.

For Crompton, the quarter brought a clear year-on-year lift in revenue and profit, with all three reported business segments recording higher revenue than a year earlier. Yet the sequential dip in profit and the operating cash outflow show that stronger earnings do not automatically translate into stronger cash generation. The next quarters will reveal whether the company can sustain its growth while managing inventory, receivables and working capital demands.