A 17% EBITDA beat was driven by stronger-than-expected L&S and ECD growth, with tighter SG&A offsetting RM cost pressures. Fan market share gains continue, supported by premiumisation and the DTM strategy. We expect growth momentum to sustain, led by stronger cooling demand amid El Niño, pricing actions, continued strength in L&S (switchgears and wires), and a recovery in B2C Lighting. We forecast ~28% PAT CAGR over FY26-28 (best in class), with ~140bps EBITDA margin expansion (highest among peers) driven by a richer mix and operating leverage. Trading below ~1SD limits downside, while strong brand equity, refreshed leadership and improved channel execution should sustain market share gains and margin expansion. Low capex intensity, a stable working capital cycle and healthy shareholder payouts should drive ~1,076bps RoCE expansion to 31.2% by FY28. Maintain BUY with a TP of Rs250, based on 30x FY28E EPS (in line with peers).

All-round Growth, Beat on All Fronts: Revenue grew by 23.5% y/y to Rs9.5bn (8.3/8% above ARe/BBG estimate), driven by strong L&S growth (up 25.4% y/y) and ECD (up 22.7%) segments. While RM cost pressure led to 277bps y/y contraction in gross margin, improved operating leverage drove EBITDA margin by 102bps to 7% (50/60bps above ARe/BBG estimate). It reported Rs39.6m exceptional loss on account of capital asset write down amid consolidation of manufacturing facilities at Noida. APAT rose by 96.7% y/y to Rs345m (36.1/39.3% above ARe/BBG estimate).

Key Concall Highlights: (a) Pricing actions remained ahead of peers, with cumulative hike of ~15-16% in Fans, double-digit hike in Appliances, ~10% hike in C-Lum Lighting and high double-digit hike in Switchgears; (b) Fan market share gain continued, with BLDC fans (up 36% y/y) contributing ~27-30% of domestic ceiling fan revenue and new launches accounting for ~30% of fan sales; (c) L&S momentum remained strong, led by >2x growth in wires, double-digit growth switchgear and recovery in B2C Lighting.

Outlook and Valuation: Post Q1, we raise our FY27/FY28 revenue estimates by 4.6%/2.9%, while trimming EBITDA margin estimates by 19bps/4bps to factor in higher RM cost volatility. We model 10.7%/21.7%/28.1% Revenue/EBITDA/APAT CAGR over FY26-28 (best among peers), driving ~1,076bps RoCE expansion to 31.2% by FY28. At CMP, the stock trades at 25.3x/20.4x FY27E/FY28E EPS, below -1SD, limiting downside. Strong brand equity, refreshed leadership and improved channel execution should sustain market share gains, while low capex intensity, a stable working capital cycle and healthy payouts provide valuation comfort. We maintain BUY with a TP of Rs250, based on 30x FY28E EPS (in line with SDA peers).

Key Risks: (a) Sharper-than-expected competitive intensity in the premium segment could limit market share gains and margin expansion; and (b) persistent RM cost inflation could weigh on margins.