Crompton Greaves Consumer Electricals Ltd. has unveiled an ambitious medium-term growth strategy, projecting a doubling of its revenue between fiscal years 2026 and 2031. The company concurrently affirmed it holds no intentions to divest any part of its business.
Strategic Financial Targets
The consumer electricals giant aims for a 13-14% compound annual growth rate (CAGR) in revenue from FY26 to FY29. Alongside this robust top-line expansion, Crompton Greaves anticipates a significant improvement in its EBITDA margins, forecasting an increase from 10.2% in FY26 to between 11-12% by FY29, with further enhancements expected through FY31.
Brokerage firm HDFC Securities, which maintains a 'BUY' rating on Crompton Greaves, highlighted the company's strong brand equity, market leadership in core categories, and extensive distribution network as key strengths supporting these targets. HDFC Securities projects revenue, EBITDA, and after-tax profit (APAT) CAGRs of 11%, 14%, and 15% respectively over FY26-29E, valuing the stock at Rs 320/share based on 28x Sep-28E EPS.
Market Share Gains and New Avenues
Crompton Greaves has demonstrated resilience and strategic prowess in its core fan business, securing a 60 basis point market share gain over the past three years despite heightened competition. The company is now targeting an additional 100 basis points gain in market share over the next five years, underscoring its commitment to category dominance.
Further driving its growth trajectory, the company is expanding into attractive adjacent markets, including wires and solar-rooftop systems. These new businesses are expected to contribute approximately 14-15% of total revenue over the next three years, eventually rising to 20% in the medium term. Management emphasized that category-specific roadmaps are in place to achieve these market-share gains and enhance the premium product mix.
Innovation and Capital Investment
Innovation in smart and connected products forms another crucial pillar of Crompton Greaves' strategy. The revenue share from these advanced offerings is projected to climb to about 15% within the next three years and further to 20% over the subsequent five years, supporting the company's margin accretion goals.
To facilitate these ambitious growth and innovation plans, Crompton Greaves anticipates an annual capital expenditure of INR 1.2 billion throughout the strategic period.