Crompton Greaves says no plan to sell stake, expects revenue to double by FY31

Crompton Greaves Consumer Electricals Ltd has said it has no plans to divest or sell the business, even as it set out a medium-term growth roadmap that includes a 13-14% revenue CAGR over FY26-FY29 and a target to double revenue between FY26 and FY31. The company also expects EBITDA margins to improve from 10.2% in FY26 to 11-12% by FY29, with further expansion envisaged through FY31.

Brokerage HDFC Securities said it likes Crompton for its strong brand equity, leadership across core categories, and its extensive distribution and service network. The company’s expansion into attractive adjacencies such as wires and solar-rooftop systems further strengthens its medium-term growth runway, although execution remains key.

"We model revenue, EBITDA, and APAT CAGRs of 11%, 14%, and 15%, respectively, over FY26–29E and broadly maintain our FY27–29E estimates. We retain our BUY rating with unchanged target price of Rs 320/share, valuing the stock at 28x Sep-28E EPS," said the brokerage.

The management reiterated its leadership in the fans category, saying the company gained 60 basis points of market share over the past three years despite intensifying competition and the entry of new players. It said it now aims to build on that momentum with an additional market share gain of about 100 basis points over the next five years.

According to the company, category-wise roadmaps have been drawn up with a focus on market-share gains and improving the premium mix. Management said new businesses are expected to contribute about 14-15% of revenue over the next three years, before rising to 20% over the medium term.

The revenue share of smart and connected products is also expected to increase to about 15% over the next three years and further to about 20% over the next five years. The company said this would support its margin-accretion roadmap. It added that capital expenditure is expected to run at an annual rate of INR 1.2 billion over the period.