Investor Presentation - Revised
CROMPTON · price
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Crompton reported Q4 FY26 consolidated revenue of Rs. 2,283 Cr, up 10.8% YoY, with strong recovery across all segments. ECD revenue grew to Rs. 1,755 Cr (16.7% YoY), Lighting delivered industry-leading 14.3% growth with its highest annual revenue in six years, and Butterfly posted 17% growth to Rs. 218 Cr. Consolidated EBIT margin improved sequentially from 6.8% in H1 to 9.9% in Q4, though absolute margins declined YoY due to sustained commodity cost pressures. The company undertook multiple price hikes and cost optimization initiatives (Unnati project) to address inflation. An exceptional impairment charge of Rs. 716 Cr was taken on Butterfly investment, reflecting a strategic reset of that business. New product launches included Crompton Armor (wires & cables) and multiple BLDC fans and appliances.
Margin recovery trajectory is positive but cost inflation remains a concern affecting profitability year-over-year. The large impairment charge signals ongoing challenges in the Butterfly acquisition, though management emphasized a cleaner foundation post-reset. Strong Q4 momentum and summer demand tailwinds provide near-term support, but investors should monitor commodity cost trends and Butterfly's return profile.