Crompton Greaves Consumer Electricals Ltd. delivered a robust performance in the fourth quarter of FY25, with net profit rising 23% year-on-year (YoY) and revenue growing 5.1% YoY, signaling improving consumer sentiment and operational efficiency across its business segments. Despite ongoing challenges in discretionary spending and inflationary pressures, the company managed to outperform expectations, largely driven by strong demand in the residential electricals category and continued margin resilience.
Key Highlights of Q4 FY25 Performance
Revenue: Rs 1,738 crore, up 5.1% YoY
Net Profit: Rs 161 crore, up 23% YoY
EBITDA Margin: Improved to 13.8%, up 160 basis points YoY
PAT Margin: Rose to 9.3%, reflecting better pricing and product mix
Earnings Per Share (EPS): Rs 2.55 vs Rs 2.07 in Q4 FY24
The company’s performance came in ahead of street estimates on profitability metrics, even as topline growth remained modest.
Strong Traction in Key Segments
Crompton’s core product categories — Fans, Lighting, Pumps, and Appliances — all saw steady traction. The Fans and Residential Pumps segments saw mid-single digit growth as seasonal demand picked up toward the end of the quarter, especially in Tier 2 and Tier 3 cities.
Its Lighting division, which had been under pressure due to price erosion in LED products, managed to deliver low single-digit growth with improving contribution from premium SKUs and B2B orders. Meanwhile, the Appliances segment, including water heaters and kitchen products, saw higher growth led by expanded distribution and new product launches.
The Butterfly Gandhimathi Appliances (BGA) business, which Crompton acquired, continued its turnaround with operational synergies and brand integration efforts showing visible results. BGA posted YoY revenue growth and reduced its loss contribution.
Operating Efficiencies Drive Margin Expansion
Crompton’s gross margins improved as a result of strategic sourcing, logistics optimization, and favorable input costs, especially in plastics and metal components. The company also managed to pass on selective price increases during the quarter, improving realization per unit across several SKUs.
The expansion in EBITDA and PAT margins was driven by lean cost structures, digitalization of supply chain processes, and lower A&P (advertising and promotion) spends relative to sales, thanks to better media planning and digital outreach.
Management Commentary and Outlook
Management expressed optimism about demand revival in the second half of FY26, citing the stabilizing macroeconomic environment, urban consumption pick-up, and government’s housing and electrification push as long-term growth enablers.
The company is focusing on:
Accelerated product innovation, especially in premium fans and smart appliances
Strengthening e-commerce and omnichannel distribution
Increasing exports to neighboring markets and Africa
Continuing operational improvements in the Butterfly subsidiary
Guidance for FY26 includes high single-digit revenue growth and further margin expansion backed by volume growth and cost control.
Conclusion
Crompton Greaves’ Q4 FY25 results reflect a well-executed strategy that balances steady growth with strong profitability. In a challenging consumer environment, the company’s ability to grow earnings by 23% highlights its resilience, premiumization focus, and operational strength. With an improving product mix, new launches, and efficiency measures in place, Crompton appears well-positioned to build on this momentum heading into FY26.