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CROMPTON’s ECD segment gained market share in its core categories, despite overall industry decline. TPW fans, coolers, and agri and residential pumps reported a decline in sales, while solar pumps delivered 2x revenue growth and small domestic appliances registered double-digit growth. Lighting segment reported flat growth, despite industry slowdown, and its EBIT margin expanded by 380bps due to improved product mix and operational efficiencies. Butterfly business reported a moderate quarter, while the management has guided for double-digit growth in FY26. CROMPTON has amended its MoA to broaden its business activities, facilitating ECD expansion and entry into solar products. Solar products are gaining strong traction in its portfolio and are expected to deliver robust growth in FY26. We estimate revenue/EBITDA/ PAT CAGR of 11.4%/14.1%/19.0% over FY25-27E. We tweak FY26 earnings while maintaining FY27 estimates. We maintain ‘BUY’ rating with revised TP of Rs430 (Rs423 earlier), based on 35x FY27E earnings.

Revenue down 6.5% YoY, PAT down 19.4% YoY: Revenue declined by 6.5% to Rs19.9bn (PLe: Rs21.9bn). Gross margin stood at 33.9% (PLe: 32.1%), up by 30bps YoY. EBITDA declined by 17.5% to Rs1.9bn (PLe: Rs2.4bn) with EBITDA margin contracting 130bps YoY to 9.6% (PLe: 10.8%). PAT declined by 19.4% to Rs1.2bn (PLe: Rs1.5bn).

ECD sales down 8.1%, lighting sales down 0.2% YoY: ECD segment declined 8.1% YoY to Rs15.8bn (PLe: Rs17.6bn). Solar pumps recorded 2x revenue growth, and agri & residential pumps demand was impacted by unseasonal rains in Q1FY26. Fan sales were largely impacted by weaker performance in the TPW category. Small domestic appliances grew by double digits driven by mixer grinder, dry iron and induction cooktop. Built-in kitchen appliances recorded revenue of Rs150mn driven by cooktops. Lighting revenue declined by 0.2%YoY to Rs2.3bn. (PLe: Rs2.4bn), while B2B lighting recorded double-digit volume growth. ECD EBIT margin contracted by 160bps to 13.3%. EBIT margin in lighting expanded by 380bps YoY to 12.7%.

Concall Takeaways: 1) Ceiling fans witnessed a downturn, while TPW and air coolers declined in Q1FY26 due to unseasonal rains. 2) Solar pumps recorded 2x revenue growth, and secured a Rs1.01bn order form Maharashtra Energy Development Agency. 3) Residential and agri pumps witnessed a slowdown due to unseasonal rains and delayed government initiatives. 4) Built-in kitchen appliances recorded a total revenue of Rs150mn in driven by cooktops. 5) The company aims for double-digit growth in Butterfly segment, driven by market share gains, improved product mix, and operational efficiencies. 6) Following the repayment of its last Rs3bn NCD, the company is now completely debt-free. 7) CROMPTON holds No. 2 position in the BLDC category and aims to become the market leader, backed by new launches on its Nucleus platform. 8) The company has announced a greenfield expansion with a total capex of Rs3.5bn, which will be incurred over the next 2-3 years. 9) The company has no plans to enter into large durables segment.

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