Crompton Greaves Targets Revenue Growth Despite Margin Dilution Risks
· Business · LiveMint, Economic Times
Crompton Greaves Consumer Electricals Ltd aims to achieve a 13-14% revenue CAGR between FY26 and FY29, with plans to double its FY26 revenue of ₹8,100 crore by FY31. The company is betting on premiumization and expansion into new categories like solar products and water purifiers to grow its total addressable market to ₹1.6 trillion. Management expects EBITDA margins to improve to 11-12% by FY29 from 10.2% in FY26, though analysts warn that entering lower-margin categories could threaten this target. The company has increased its R&D spending to 1.1% of sales and plans an annual capex of approximately ₹120 crore to support innovation.
Why it matters
The company's shift toward new, less weather-dependent categories is a strategic attempt to diversify revenue, though it faces a direct trade-off between aggressive growth and maintaining profit margins.
Read the original report — LiveMint
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