Crompton Greaves Consumer Electricals Ltd Management Discussions

Economic overview

Global economy

The global economy [SM1.1] demonstrated notable resilience during FY 2025 26, underpinned by easing inflationary pressures and steady aggregate demand, even as geopolitical tensions and macroeconomic uncertainties persisted. According to the IMFs World inflation EconomicOutlook(April2026),globalheadline is projected to moderate to approximately 3.8% in 2026, reflecting the lagged effects of tighter monetary policy and gradual normalisation of supply conditions. Supply chains have largely normalised from the disruptions witnessed during the pandemic period; however, evolving trade barriers, geopolitical conflicts, tariff actions and regional shipping disruptions continue to drive periodic volatility in logistics costs and sourcing decisions. Nevertheless, price stability remains vulnerable to energy market volatility, residual supply chain disruptions, and elevated labour costs, particularly across emerging market economies. The global energy transition gained momentum, with increased investment in renewables and clean technologies, although uneven implementation and critical mineral supply constraints posed risks to cost stability.

Geopolitical tensions continued to influence economic sentiment, contributing to cautious business confidence through andprompting diversification of production and sourcing strategies.

Growth patterns remained divergent. Advanced economies experienced relatively subdued expansion consumer amidtight sentiment, while emerging markets continued to drive global growth, with varied performance influenced by currency movements, domestic demand conditions and structural constraints. Monetary policies across major economies remained largely restrictive through the year, with central banks maintaining elevated interest rates to anchor inflation expectations. This resulted in moderated credit growth and a gradual shift in consumption behaviour, with consumers prioritising essential and value-driven spending over discretionary purchases.

Global trade growth showed signs of deceleration amid rising geopolitical tensions and protectionist tendencies, alongside renewed risks from energy price volatility and supply chain disruptions. At the same time, investments in technology and digital transformation, particularly in areas such as artificial intelligence, continued to support economic activity and productivity improvements.

Sustainability continues to shape the global economic agenda as climate-linked disruptions, shifting regulatory expectations and the need for more resource-efficient operating models are prompting governments and businesses alike to recalibrate investment priorities. The World Economic Forum notes that climate-related spending pressures are likely to remain significant in the years ahead. Meanwhile, growing concerns about environmental sustainability is expected to impact the regulatory landscape. Geopolitical and geoeconomic tensions remain among the most consequential forces shaping the global operating environment. It continues to result in greater fragmentation of trade, technology and investment flows, with implications for business confidence, market access and cross-border supply chains.

Chinas economic trajectory continues to be characterised by moderating growth and subdued price pressures. The World Bank projects Chinas growth at 4.9% in 2025, softening to 4.4% in 2026 and 4.2% in 2027. Amid softer domestic demand and structural headwinds, downward pressure on both consumer and producer prices is expected to persist. This combination of slower expansion and low inflation remains significant for the global economy, given Chinas influence on manufacturing networks, trade flows and commodity demand.

The China Plus One strategy continues to gain strategic relevance as businesses seek to diversify manufacturing footprints and build greater supply-chain resilience. What was once a tactical response to disruption is now evolving into a more structural reconfiguration of supply chains, with wider implications for investment allocation, regional manufacturing ecosystems and global trade patterns. The re-emergence of tariff-led trade measures by the United States has become an important macroeconomic factor influencing global trade flows, inflation expectations and investment decisions. Businesses globally are reassessing sourcing strategies, supply chain configurations and manufacturing footprints in response to evolving tariff structures and trade-policy uncertainty.

This year, the global macro narrative is more appropriately framed through tariffs, trade-policy uncertainty and conflict-linked commodity risks than through monetary policy alone. The World Bank points to a weaker trade environment, the delayed impact of higher trade barriers and greater policy uncertainty as key drags on the global outlook. It also notes that higher tariffs in the United States began feeding more visibly into goods-price inflation during 2025, even if the pass-through was initially moderated by inventory build-up and margin absorption. Against this backdrop, ongoing tensions affecting energy-producing regions, including the Gulf, retain the potential to amplify volatility in commodity markets, logistics and input costs. Meanwhile, artificial intelligence is emerging as a source of economic support and a material risk consideration. Businesses increasingly recognize AIs potential to improve productivity, efficiency and decision-making, yet concerns are simultaneously rising around implementation challenges, liability exposure, misinformation, governance, data quality and workforce readiness. As AI adoption deepens, it is becoming not merely a technology trend, but a transformative force that carries both strategic opportunity and execution risk. AI adoption is accelerating across sectors, reshaping business models, operating processes and competitive dynamics, with early movers gaining efficiency advantages while laggards risk strategic displacement.

(Source:World Bank , World Economic Forum, Global Risks Report

2026; Allianz Commercial, Allianz Risk Barometer 2026)

Global growth projections

Particulars	2025E	2026F	2027F
World	2.7	2.6	2.7
China	4.9	4.4	4.2
South Asia	7.1	6.2	6.5
India*	7.2	6.5	6.6

*India figures are reported by the World Bank on a fiscal-year basis

Outlook

Global GDP growth is estimated at approximately 3.2% 3.3%, reflecting stable but moderate expansion compared to pre-pandemic trends. While easing financial conditions, technology-led investment and continuing supply-chain adaptation may offer support, the overall expansion is expected to remain constrained by higher trade barriers, persistent policy uncertainty and uneven regional momentum. Risks remain tilted to the downside, particularly in the event of renewedtradeescalation,tighterfinancial conditions, commodity shocks or further deterioration in geopolitical conditions. Even so, the global economy has shown the ability to absorb more shocks than in the recent past, suggesting that resilience will endure. Overall, 2025 26 was characterised by steady but cautious global growth, easing yet uneven inflation trends and a complex operating environment shaped by geopolitical developments, evolving policy responses and shifting consumption dynamics.

Indian economy

India continued to distinguish itself as one of the worlds fastest-growing major economies, supported by resilient domestic demand, sustained public investment and a broad-based services ecosystem. The Economic Survey 2025-26 projects FY27 growth at 6.8%-7.2%, while the World Bank estimates that Indias growth strengthened to 7.2% in FY26, driven by robust domestic demand, resilient services exports and improving rural real incomes. Despite geopolitical tensions, trade friction and policy uncertainty, Indias growth momentum remained durable. with nominal Thegrowth GDP reaching 357.1 lakh crore in FY26 (FAE). Indias domestic scale, macroeconomic stability and policy support continued to provide a cushion against external volatility. Consumption remained the principal growth engine, supported by improving incomes and broadening urban and rural demand. The services sector continued to contribute demand creation, with housing, tourism, digital services, media and entertainment, and Global Capability Centres deepening their role.

Consumption sentiment benefited from income tax relief and selective GST rationalisation, supporting disposable income and discretionary demand. Rural demand is expected to recover on the back of improving incomes, favourable agricultural output and continued government support, while urban consumption is likely to benefit from wage growth, premiumisation and improving confidence. Indias manufacturing and investment landscape also strengthened. Medium- and high-technology industries accounted for 46.3% of manufacturing value added, indicating a move up the value chain. India also emerged as the worlds largest destination for greenfield digital investment between 2020 and 2024, attracting $114 billion across digital services, data centres and IT infrastructure. This expansion is creating incremental demand for electrical products, power solutions, wires and cables, and energy-efficient technologies.

Indias current account deficit moderated to 0.8% of GDP in H1 FY26, while foreign exchange reserves stood at $701.4 billion in January 2026. Inflation moderated during the year, supported by favourable agricultural conditions, improved food grain stocks, moderate global metal prices and timely policy intervention, though food-price and weather-related risks remain.

Policy support remained growth-oriented. The Union

Budget 2026-27 balanced fiscal consolidation with investment-led growth, budgeting Central Government capital expenditure at 12.2 lakh crore, or 3.1% of GDP, and tooutput,employmentand targeting a fiscal deficit of 4.3% of by strong services exports, remittance inflows, reserve buffers, infrastructure investment and a favourable manufacturing ecosystem, India remains well positioned to attract global capital amid supply chain diversification.

(Sources: NationalStatistics MoSPI, Provisional Estimates of

Annual GDP for FY2025-26, Economic Survey 2025-26, Government of India; World Bank)

Outlook

Indias near-term outlook remains favourable, supported by domestic consumption, public capex, a resilient services economy and an improving manufacturing base. According to the World Bank, although South Asias growth is expected to moderate to 6.2% in 2026 before improving to 6.5% in 2027, India remains well placed to benefit from faster technology-led investment growth and potential gains from more resilient trade and investment linkages. Despite risks related to trade restrictions, tighter financial conditions, social pressures and extreme weather events, India appears relatively well positioned to navigate a more uncertain global environment, supported by strong macroeconomic buffers, expanding digital and industrial capabilities and sustained policy emphasis on infrastructure and long-term capacity creation.

Industry overview

Electrical consumer durables industry

Indias electrical consumer durables industry remained on a structurally favourable path in FY 2025 26, supported by rising household penetration, urbanisation, rural and semi-urban consumption, improving affordability and growing preference for energy-efficient products. While Indias broader appliances and consumer electronics sector is expected to reach around 3 lakh crore by FY29, the more relevant opportunity for Crompton lies across consumer electrical categories such as fans, pumps, water heaters, air coolers, lighting, small appliances and wires. These categories are closely linked to housing additions, renovation and replacement demand, seasonal consumption, agricultural and water-management needs, and increasing appliance density in Indian homes.

FY27. Supported Growthacross the sector is increasingly being shaped by a transition from basic utility to performance-led, design-led and efficiency-led purchase decisions. In fans, BEE-linked efficiency norms and rising consumer awareness are supporting a shift toward BLDC and premium decorative variants. In pumps, demand remains anchored in residential water management, agriculture, construction activity and retail replacement, with additional long-term support from solar pump adoption under PM-KUSUM. Water heaters and air coolers continue to benefit from low penetration, climate-linked demand, compact urban living and rising preference for smart, safe and energy-efficient appliances. Lighting remains supported by LED replacement demand, infrastructure upgrades and public energy-efficiency programmes, while wires are gaining from housing, renovation, safety awareness and the shift toward organised branded products.

The channel environment is also evolving. General trade continues to dominate the electrical goods industry, supported by dealer trust, electrician influence, service proximity and reach across Tier II, Tier III and rural markets. At the same time, modern trade, e-commerce and assisted digital discovery are expanding access to premium and new-age categories. Consumers are increasingly comparing product features, lifecycle cost, energy savings and after-sales support before purchase, making brand credibility, service assurance and portfolio relevance important

Energy efficiency, localisation and clean-energy adoption are increasingly shaping category development across Crompton-relevant electrical consumer durable segments. This is visible in the shift toward BLDC fans, energy-efficient pumps, LED lighting, safer wiring products, water heaters and solar-linked pump and rooftop solutions. Policy support is also moving closer to these demand pools, with PM-KUSUM supporting solar agriculture pumps and pump solarisation, and PM Surya Ghar encouraging rooftop solar adoption at the household level. Together with BEE-led efficiency labelling and a maturing domestic supplier ecosystem, these trends are strengthening demand for reliable, efficient and locally supported electrical products.

Near-term performance may continue to be influenced by commodity-price volatility, weather-linked seasonality and uneven discretionary demand. Even so, the industrys medium-term outlook remains constructive, supported by Indias expanding consumption base, home improvement trends, energy-efficiency awareness and the growing need for safer, smarter and more durable consumer electrical products.

Read more on page 76

(Sources: IBEF, Bureau of Energy Efficiency, Ministry of New and

Renewable Energy, IMARC Group , Press Information Bureau)

Fans

The Indian fan industry continues to present a favourable growth outlook, supported by rising temperatures, expanding adoption across rural and semi-urban markets. The Indian fan industry continues to present a favourable growth outlook, supported by rising temperatures, expanding cation, urbanisation and wider adoption across electrifi rural and semi-urban markets. Fans remain one of the most widely used electrical consumer durables in the country, with demand supported by replacement cycles, first-time efficient, aesthetically designed products across income segments and climatic conditions. The category is also benefiting from utility products to feature-rich and energy-efficient fans. The Indian electric fan market reached $2 billion in 2024 and is projected to grow to $5.64 billion by 2033, at a 12.2% CAGR.

The category is also witnessing a clear premiumisation shift. Consumers are increasingly gravitating toward aesthetically appealing, energy-efficient and technologically advanced fans, including decorative, silent, remote-controlled and IoT-enabled variants. Ceiling fans continue to account for the bulk of category sales, while rising disposable income and stronger home decor orientation are supporting demand for premium offerings. The premium segment has also seen healthy growth, reflecting the class consumers to upgrade beyond basic utility products. BLDC fans continue to be amongst the fastest-growing sub-segments, supported by rising consumer awareness of energy efficiency, increasing electricity costs and evolving BEE regulatory standards.

Energy efficiency is emerging as a particularly important demand driver. BLDC-powered fans consume up to 50 65% less energy than conventional models, lowering andincreasingpreferencefor power consumption significantly. At the same time, digital retail is broadening access, especially in Tier II consumermigrationfrombasic and III markets and rural India. Together, these trends are expected to support the continued growth of technologically advanced, feature-rich and energy-efficient fans.

Unlike several consumer durable categories, the induction fan segment benefits from a highly localised and mature domestic supply chain, supporting cost competitiveness and reducing import dependence.

Read more on page 78

(Sources:IMARC Group , India Ceiling Fan Market; Research and

Markets, India Electric Fans Market; Indian Fan Association for annual fan-volume context)

Pumps

The Indian pumps market continues to present a favourable growth opportunity, supported by demand from agriculture, residential water management, construction activity and retail replacement. Pumps remain essential to everyday water access and movement, serving applications such as domestic water transfer, pressure boosting, irrigation, drainage and small commercial usage. With rising urbanisation, expanding housing stock and increasing water-management needs across households and farms, the category continues to benefit from both first-replacement-led consumption.

Residential water pumps remain an important demand driver, supported by new housing, renovation activity, apartment living and the need for reliable water pressure management. Demand for pressure booster pumps, submersible pumps and domestic transfer pumps is also increasing as consumersseekdependable,efficient and low-maintenance solutions for modern homes. In rural and semi-urban markets, agriculture pumps of middle- continue to remain structurally relevant, supported by irrigation requirements, farm mechanisation, groundwater access and the gradual transition toward energy-efficient and solar-powered pumping solutions.

Retail replacement demand provides an important recurring growth base for the category. Indias large installed base of pumps, combined with wear-and-tear replacement, service-led upgrades and rising preference for branded, durable and energy-efficient products, continues to support demand through the trade channel.

Electrician, plumber and retailer recommendations demandandsteady remain influential in the purchase distribution depth, product availability, after-sales service and brand trust critical differentiators. flowand The category is also witnessing a gradual technology and premiumisation shift. Consumers are increasingly evaluating pumps on reliability, energy efficiency, lifecycle cost, noise levels, corrosion resistance and ease of service. Smart, IoT-enabled and solar-compatible pumps, along with features such as dry-run protection, remote monitoring and improved motor efficiency, are gaining relevance across select use cases. While monsoon variability and commodity-price movements may influence near-term demand, the medium-to-long-term outlook remains constructive, supported by residential expansion, agricultural water needs, replacement demand and Indias growing focus on efficient management solutions.

Read more on page 82

(Source: Grand View Research, India Pumps Market Size & Outlook,

2026-2033)

Large Domestic Appliances

Indias large domestic appliances category is expected to remain on a structurally positive path, supported by urbanisation, rising household aspirations, replacement demand and increasing preference for branded, efficient and feature-rich products. While near-term demand may vary across categories depending on seasonality and input-cost trends, the long-term outlook remains favourable as consumers continue to upgrade from basic products to reliable and energy-efficient appliances.

For Crompton, the more relevant opportunity within this broader category lies in water heaters and air coolers. Water heaters are growth, renovation activity, bathroom modernisation and growing consumer preference for safe, durable and faster-heating products. Demand is also being shaped by the shift towards instant and storage water heaters with improved design, enhanced safety features and lower operating costs.

Air coolers continue to remain relevant for Indian households, particularly in markets where energy efficiency and ease of use are important purchase considerations. The category is supported by seasonal demand, rising temperatures and preference for effective cooling at lower running costs. Across both water heaters and air coolers, product innovation, distribution reach, after-sales service and brand trust are expected to remain key differentiators in sustaining growth.

Read more on page from housing 86

(Source: CRISIL)

Small Domestic Appliances

Indias small domestic appliances category continues to expand, supported by rising urbanisation, changing lifestyles, growing household formation and increasing preference for convenience-led products. Demand for products such as mixer grinders, blenders, kettles, air fryers, vacuum cleaners and food processors is benefitting from health-conscious consumption, modular kitchen adoption, time-saving needs and continued premiumisation across kitchen and home-care categories.

Demand for products such as mixers, blenders, kettles, air fryers, vacuum cleaners and food processors are benefitting from rising health consciousness, convenience-oriented consumption and modern kitchen adoption. Juicers and blenders accounted for 21.86% of the market in 2025, while air fryers are expected to be among the faster-growing segments with a projected 7.88% CAGR through 2031. Smart-home integration is also gaining relevance, as consumers increasingly adopt connected appliances with app-based control, voice-assisted operation and energy-monitoring features.

Distribution is also evolving in favour of wider access and faster product discovery. Multi-brand retail, general trade, modern trade and online channels continue to play complementary roles, with e-commerce improving product discovery and premium-category access across Tier II and Tier III markets.

Read more on page 90

Large Kitchen Appliances

Indias large kitchen appliances category continues to present a favourable growth outlook, supported by rising disposable income, expanding urban middle-class households and the growing adoption of modern kitchens. The large cooking appliances market in India was valued at $2.37 billion in 2025 and is projected to reach $7.23 billion by 2035, reflecting a robust 11.8% CAGR over 2026 2035. The category is benefitting from changing lifestyle preferences, increasing nuclear families and stronger demand for premium, multifunctional and aesthetically integrated kitchen solutions.

Demand within the category is being shaped by apartment living, compact-home design and the need for space-efficient, time-saving appliances. Products such as cooktops, ovens and specialised cooking appliances are increasingly being chosen for convenience, design appeal and technology integration. Besides, increasing female workforce participation has increased the demand for automated and multifunctional appliances that simplify everyday cooking.

Technology and efficiency are becoming more central to purchase decisions. Smart kitchen appliances with connectivity and automation features are gaining ground, while energy-efficient appliance technologies are attracting consumers seeking lower electricity costs and better long-term value. E-commerce and omni-channel retail are broadening category access, and growing penetration of modular kitchens, premium home improvement trends and rising adoption of convenient cooking solutions are opening new consumption opportunities beyond the core urban markets. With cooktops leading the category and household applications accounting for the largest share, the segment remains well placed to benefit from lifestyle upgrades, premiumisation and the continued evolution of the modern Indian kitchen.

Read more on page 94

Lighting

Indias lighting industry continues to evolve on a favourable structural trajectory, supported by urbanisation, infrastructure build-out, real estate momentum and an accelerating shift toward energy-efficient and smart lighting solutions. The industry, estimated at ~$4.9 billion in 2026, is projected to reach ~$6.9 billion by 2031, growing at a CAGR of ~7.2%, driven by a combination of replacement demand, new construction, public infrastructure upgrades and premium-led category expansion

(Source:Mordor Intelligence).

LED lighting remains the dominant and fastest-growing segment, already accounting for the bulk of industry sales by value. Sustained LED adoption is being driven by longer product life, significantly lower energy consumption, declining cost curves, and rising consumer awareness around lifecycle savings and sustainability. Flagship government initiatives such as UJALA and the Street Lighting National Programme (SLNP) have catalysed mass adoption across households and urban infrastructure, while BEE star-labelled energy-efficient lamps continue to reshape consumer preference.

The category is also being redefined by smart and connected lighting solutions including IoT-enabled bulbs, app-controlled systems, motion and daylight sensors, and tunable lighting which are growing at a meaningfully faster pace than the broader market. Simultaneously, the B2B and project lighting segment is gaining traction on the back of smart cities, highways, industrial corridors, retail expansion, warehousing and commercial real estate development, broadening the opportunity beyond traditional consumer lighting. A clear premiumisation and design-led shift is also underway, with rising demand for decorative, architectural and aesthetic lighting in both residential and hospitality segments, supported by growing home-decor orientation and lifestyle aspirations.

While near-term demand may be influenced by commodity volatility, channel destocking and pricing pressures in commoditised LED categories, the medium-to-long-term outlookremainsfirmly constructive. The industry is well placed to benefit from Indias rising infrastructure intensity, energy-efficiency transition, smart-home adoption and premium-mix expansion offering brand strength, technology depth and multi-channel distribution a sustained growth runway.

Solar pumps and rooftops

Indias solar solutions ecosystem is emerging as a structurally important pillar of the countrys energy-transition agenda, supported by decentralised generation, falling technology costs and strong policy momentum. With cumulative solar capacity crossing ~100 GW in early 2025 and a national target of 500 GW non-fossil capacity by 2030, decentralised solar through rooftop systems and solar pumps is becoming a defining theme within the consumer and small-business energy landscape.

Solar Rooftop: The Indian rooftop solar market has entered a high-growth phase, with cumulative installed capacity reaching ~13.7 GW in 2024, and is projected to grow at a CAGR of ~28% to ~167 GW by 2034 (Source: offers a meaningful IMARC). Near-term estimates suggest capacity could reach 25 30 GW by FY27, with the C&I segment historically accounting for ~70 75% of installations. Adoption is being driven by corporate decarbonisation goals, time-of-day tariffs and lower lifecycle energy costs. Residential adoption is scaling rapidly through the PM Surya Ghar Muft Bijli Yojana (launched February 2024, targeting 1 crore households with central financial assistance of up to I 78,000 per household), supported by the Rooftop Solar Programme Phase II extended through 2026. The category is also evolving toward integrated solutions combining solar with battery storage, EV charging, smart metering and digital monitoring. Solar Pumps: Anchored by the PM-KUSUM scheme, targeting ~35 lakh solar pumps, this category is reshaping Indias irrigation landscape by reducing dependence on diesel and grid power, lowering farmers operating costs and supporting rural energy security. While near-term execution may be influenced by policy timelines, financing and module pricing, the medium-to-long-term outlook remains firmly constructive. The category runway for established players with brand strength, distribution scale and integrated solution capabilities.

(Sources:Research and Markets , India Solar Rooftop Market

Outlook 2025-2034; CareEdge Advisory/PV Magazine India, rooftop solar capacity to FY27; MNRE/PIB for PM Surya Ghar and rooftop-solar programme status)

Wires and cables

Indias wires & cables (W&C) industry continues to present a favourable structural growth outlook, supported by a robust housing cycle, accelerating real estate completions, infrastructure build-out, renewable energy expansion and rising digital connectivity. The market is projected to grow from ~$21 billion in 2025 to ~$35.6 billion by 2031, reflecting a CAGR of ~9%, with consumer-led applications accounting for nearly 70% of industry revenue (Source: TechSci Research).

Housing wires remained the largest segment, accounting for ~32% of industry revenue in 2025, anchored by strong residential completions, urbanisation and renovation-led replacement demand. The category is benefitting from multiple converging tailwinds:

• Sustained real estate momentum, driving primary demand from new residential construction across Tier I and Tier II cities.

• Premiumisation shift, with rising preference for flame-retardant (FR), FRLS, heat-resistant and fire-survival variants, driven by growing fire-safety awareness, stricter building norms and insurance requirements.

• Organised-to-unorganised shift, with the organised segment now ~70% of housing wires and steadily gaining share, supported by brand trust, safety certification and

• Renovation and replacement demand from Indias large existing housing stock, complemented by rising appliance density per household, necessitating higher-rated, safer wiring solutions.

The broader category is also being supported by infrastructure-led tailwinds utility projects aligned with Indias 500 GW non-fossil capacity target by 2030, rooftop solar adoption under PM Surya Ghar (over 10 lakh installations), 5G rollout, data centres and rural electrification addressable market.

While near-term margins may be price volatility and competition from counterfeit/ unorganised products, the medium-to-long-term outlook remains electrician-led purchase decisions. a multi-year structural growth runway for established brands with strong electrician relationships, distribution depth and product credibility.

(Source:Mordor Intelligence, India Wire and Cable Market - Size and Share Analysis)

Key growth drivers

Changing lifestyle preferences

Evolving consumer lifestyles are reshaping demand patterns across Indias electrical consumer durables landscape. Rising disposable incomes, growing nuclearisation of families, accelerating urbanisation and the post-pandemic shift toward home-centric living are driving consumers to seek products that blend performance, aesthetics, convenience and energy efficiency. Demand is increasingly skewed toward premium, smart and design-led variants, with consumers viewing appliances as lifestyle and comfort statements rather than pure utility products. The appliances and electronics market are expected to expand from $75 billion in 2024 to $130 150 billion by 2029.

(Source:Redseer Strategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Omnichannel availability efficient pumps,

The route to market is evolving rapidly as traditional and modern channels coexist and expand. General trade continues to dominate the electrical goods industry, supported by trust, proximity, retailer influence and deep reach across Tier II, Tier III and rural markets, while organised offline and online channels are scaling through better assortment, assisted commerce and convenience. Online sales remain especially strong in electronics and accessories, while quick commerce is beginning to create incremental demand for small appliances and smart-home products, widening the industrys addressable consumer base.

(Source: RedseerStrategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Sustainable choices

Sustainability is becoming an increasingly visible driver of growth in the electrical consumer durables industry, with demand steadily shifting toward products that offer lower operating costs, better energy efficiency stronger environmental credentials. This shift is visible across Crompton-relevant categories such as BLDC

fans,energy- lighting, water heaters and air coolers, where consumers are increasingly evaluating lifecycle savings, durability and responsible energy use alongside performance and design. At the same time, evolving BEE norms and rising awareness of electricity costs are expected to further raise the efficiency threshold across the market.

(Source: KPMG in India, The Indian Consumer Durables Sector - Q2/ Q4 FY26)

Brand strength

Brand strength remains one of the important growth drivers in the consumer durables industry. 2025 was a year when growth increasingly favoured players that combined strong distribution with differentiated product narratives. As consumers research more carefully and weigh lifetime value more consciously, trust, reliability, after-sales assurance and clear category positioning are becoming more influential in shaping purchase decisions. The category also continues to be supported by sustained brand-building and investment. The growing traction for feature rich energy efficient and premium offerings suggests that brands with stronger consumer recall, service credibility and differentiated value propositions are better placed to capture demand. A defining shift is the accelerating pivot toward digital, social media, influencer and content-led marketing which now accounts for over half of total ad spend enabling sharper targeting, richer storytelling and deeper consumer engagement. Brands with stronger recall, service credibility, premium positioning and digital-first narratives are emerging better placed to capture the growing pool of feature-rich, energy-efficient and premium demand.

Technological innovation

Technological innovation is emerging as a major growth catalyst, with faster product-development cycles and sharper response to consumer needs driving category creation. Leading brands are shortening concept-to-shelf timelines through modular platforms and agile manufacturing, while innovations such as dual basket air fryers, app integrated appliances and advanced motor technologies in mixer grinders are helping stimulate demand. The result is a market in which innovation is central to differentiation, relevance and premiumisation.

(Source:Redseer Strategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Growing middle-class population

Indias expanding middle class continues to widen the demand base for consumer durables. By 2029, more than 40% of households in India are expected to belong to the upper middle class. With growing disposable income, the purchasing capacity of consumer durables is likely to rise. It is, therefore, likely to translate into greater demand for functional as well as aesthetic consumer appliances and electrical goods.

(Source:Redseer Strategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Rising preference for health and well-being

Health and wellness are becoming increasingly important influences on product choice. It has resulted in the rapid growth of categories such as air fryers, juicer-grinders and purifiers, broader consumer preference for appliances that support healthier lifestyles and everyday well-being.

As awareness rises across age groups and urban households continue to prioritise convenience with wellness, formerly niche categories are moving closer to the mainstream.

(Source:Redseer Strategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Smart-home trends

Smart-home adoption is opening a new avenue of growth within the consumer durables landscape. Smart devices are evolving from standalone novelties into integrated ecosystems that enhance convenience, security and energy efficiency. IoT-enabled ceiling fans, connected lighting systems, smart water heaters and air-quality-monitoring kitchen appliances are increasingly shaping the smart-home ecosystem.

(Source:Redseer Strategy Consultants, Indias $130+ Billion Appliances Market Opportunity, July 2025)

Government initiatives

Government policy continues to play an important enabling role in the growth of Indias electrical consumer durables industry. Programmes such as PM Surya Ghar Muft Bijli Yojana, PM-KUSUM, rooftop solar initiatives and energy-efficiency programmes are supporting the shift toward decentralised clean energy, solar pumps, rooftop solutions and efficient electrical products. PM-KUSUM provides central government subsidy support for standalone solar pumps and solarisation of existing grid-connected agricultural pumps, while PM Surya Ghar is encouraging residential rooftop solar adoption. Alongside BEE-led efficiency standards and continued emphasis on infrastructure, digital penetration and localisation, these initiatives are expected to strengthen demand for reliable, efficient and future-ready electrical products.

(Sources: KPMG , Ernst and Young, Economic Survey 2026)

Company overview

Crompton is one of Indias leading electrical consumer durables and lighting brands, with a trusted legacy of delivering innovative, performance-led and consumer-centric products that have become an integral part of Indian households for generations. Anchored in strong brand equity, deep distribution and a relentless focus on quality, we have built a leading position across fans, pumps, lighting, water heaters, air coolers, kitchen appliances and household wires, complemented by our growing presence in solar rooftop solutions a strategic foray that aligns us with Indias accelerating energy-transition opportunity.

In FY26, we continued to advance the next phase of our growth journey under Crompton 2.0, our strategic blueprint to strengthen market leadership, accelerate premiumisation and unlock new growth vectors. As consumer preferences evolve, we are enriching our portfolio with premium, energy-efficient and design- investment in R&D, led smart technologies and intuitive design delivering products that combine performance, aesthetics and lifecycle value for the modern Indian consumer.

Contribution to National Exchequer andEconomy

We are committed to transparent, fair and ethical engagement with tax authorities. Our responsible tax strategyreflectsafirm commitment to complying, both in letter and spirit with all applicable taxation laws, statutory obligations and regulatory requirements, including income tax, GST and customs duties, across the jurisdictions where we operate. Our approach is proactive and structured, we leverage technology to automate and strengthen compliance processes, conduct periodic audits and assurance activities, and maintain robust internal controls to improve the accuracy, efficiency and timeliness of tax reporting and decision-making. In FY 2025-26, the Company contributed I483.3 Crore to the exchequer through taxes.

Crompton at a glance

• Worlds No. 1 ceiling fan brand

• Presence across ECD, Lighting and Butterfly

• Trusted innovation-led consumer franchise

• Expanding portfolio across premium, energy efficient and innovative product categories

• Pan-India distribution and service reach

• Expanded addressable market through entry into new segments

Crompton 2.0

Crompton 2.0 defines the next phase of our growth journey. It has sharpened our strategic priorities and strengthened our ability to create long-term value in a dynamic market. It empowers us to adapt to evolving industry requirements, secure growth of core categories, scale our presence in the kitchen segment, transform the lighting business and build new growth platforms.

Our execution is supported by: an enabled and empowered organisation, consumer need-led innovation, premiumisation of portfolio, supply chain excellence, go-to-market excellence and digital enablement. Together, these enablers help us move from capability-led growth to more consumer-centric, insight-led and execution-driven growth.

Strategic Priorities

• Protect the core

• Scale the kitchen business

• Transform lighting

• Enter new adjacencies selectively

Enabled by

• People

• Innovation

• Premiumisation

• Supply chain

• Go-to-market

• Digital

Butterfly Gandhimathi Appliances Limited

Butterfly reputed kitchen appliances manufacturer with a strong market presence in southern India. It is renowned for an extensive portfolio of LPG stoves, pressure cookers, mixer tability during the year. profi grinders and wet grinders. With over four decades of category experience, the brand continues to strengthen its position in kitchen and small domestic appliances through sharper portfolio choices, increased premiumisation and disciplined market execution. In FY 2025 26, gained momentum with a refreshed brandidentity, ys relevance across more focused product strategy and a consumer-led approach across products, channels and the overall brand experience.

Crompton holds 75% stake in market leadership in southern India to benefit from its advanced manufacturing and R&D capabilities and a robust distribution network.

A key milestone for FY 2025 26 was the launch of the Idea First Series, comprising 40+ new SKUs across core categories. Real kitchen insights were taken into consideration for developing thisnew-age range Butterfly section on page that strengthened our position in core segments and improved traction in premium channels, including e commerce, modern trade and regional chains. We also Appliances Limited (Butterfly) is a enhanced Butterflys operating cost discipline, better governance and sharper channel execution, which collectively improved revenue momentum and As consumer demand shifts, we are constantly aligning Butterflys product range with emerging trends. While demand for premium products continue to accelerate across core southern markets, our growing distribution north and networkisincreasing west India.

We supported this growth by adding more capacity during the year, increasing pressure cooker capacity from 12 lakh to 18 lakh units and mixer grinder capacity from 18 lakh andleveragesits to 24 lakh units. We also improved coordination across sourcing, production and demand forecasting through the M+1 manufacturing planning system to power a responsive and synchronised operating model.

Read more about Butterfly Gandhimathi Appliances Limited in the subsidiaries section of the Boards Report on page 237 andinthe 106

Key interventions at

• Refreshed brand positioning under ‘Celebrating Change

• Accelerated premiumisation through innovative product launches

• Strengthened presence in e-commerce, modern trade and regional chain stores

• Improved margins through better mix and disciplined spend optimisation

Manufacturing

Our manufacturing ecosystem is built to deliver scale, reliability and agility. In FY2025-26, we strengthened our operational foundation through capacity realignment, enhanced digital visibility, stricter quality systems and a sharper focus on safety and sustainability. These initiatives are helping create a more responsive and future ready manufacturing network.

Manufacturing locations (including Butterfly)

We advanced our Future Readiness agenda through a strategic restructuring of the Vadodara facility and evaluation of a greenfield project, while strengthening energy efficiency at Pudupakkam via solar deployment and targeted low-cost interventions collectively reinforcing our manufacturing competitiveness, sustainability and long-term capacity readiness.

Key operational moves

• Vadodara restructured into a multi- product hub

• BLDC PCB and appliance lines added

• In-house Validation Lab inaugurated

• Solar integration at Pudupakkam

• Greenfield under evaluation

• Improved margins through better mix and disciplined spend optimisation

We enhanced operational visibility and coordination through digital tools. A QR code based track and trace system now strengthens product visibility across lines and warehouses, while digital planning initiatives are improving forecast accuracy, S&OP alignment and inventory discipline. Integrated warehousing across Crompton and Butterfly is further supporting improved delivery responsiveness.

Quality control remains a priority across our plants. During the year, we deepened digitisation via the SAP Quality Module, completed 70 QC story projects and enhanced participation in quality initiatives through Kaizens, training interventions.

Meanwhile, we strengthened our zero harm culture through ISO aligned EHS systems, completing FY2025 26 audits with zero non conformities. We also enhanced digital compliance monitoring, advanced machine and process risk reduction measures and maintained our focus on waste recycling, water reuse and emergency preparedness.

Innovation

Innovation remains central to strengthening our portfolio, enhancing consumer relevance and building a differentiated position in a competitive market. We advanced a consumer led innovation model that integrates insight, engineering, design and structured development to deliver more reliable products that were developed to enhance customer experience.

Our innovation process starts with understanding real consumer usage. These insights are translated into product concepts through close collaboration across marketing, R&D and product development, enabling us to address evolving expectations around convenience, performance, usability and design.

During the year, we strengthened our proprietary technology platforms, NUCLEUS and XTECH. NUCLEUS is driving premium efficiency and deeper participation in BLDC led categories, while XTECH is enhancing reliability, durability and performance across visits and structured core segments.

Our innovation efforts are guided by a structured stage gate NPD framework that supports disciplined collaboration from concept to launch. Rigorous validation and reliability testing ensure strong safety, performance and product quality standards across categories. We continue to integrate design, usability and sustainability into product development. Our industrial design teams work with engineering and marketing to improve form, ergonomics and user experience, while energy efficiency, responsible materials and lifecycle considerations remain central to our approach. We strengthened our innovation ecosystem by investing in advanced laboratories and testing capabilities, including NVH testing, RoHS compliance, packaging performance testing and EMI/EMC validation.

What shaped innovation in FY2025-26

• Consumer centric product development

• Stronger proprietary platforms through

NUCLEUS and XTECH

• Structured stage-gate NPD and validation processes

• Closer integration of design, usability and sustainability

• Focus on premium, differentiated offerings

Branding

We continued to evolve our brand by gathering consumer insight, making Brand Crompton more modern, differentiated touchpoints. Our branding approach aligns closely with Crompton 2.0, where consumer centricity, premiumisation and go to market excellence drive stronger brand salience. We are enhancing relevance for evolving Indian households through need based innovation, sharper design language and more consistent communication across categories and channels.

The Company undertook an extensive Usage & Attitude (U&A) study across multiple product categories to deepen understanding of consumer behaviour, usage occasions, unmet needs and purchasing drivers. Insights from the study are being leveraged to strengthen product development, communication strategies and portfolio premiumisation initiatives.

As demand shifts toward better aesthetics, smarter functionality and more we are strengthening our premium categories. This includes fans with innovative designs, architectural and decorative lighting, higher specification appliances and connected ecosystems. Our branding reflects this shift, positioning Crompton as a more contemporary, experience led solutions brand.

Alongside our extensive retailer network, we are increasing visibility across alternate channels, with e commerce emerging as a key platform for premium and differentiated offerings. This helps us stay aligned with changing purchase journeys and consumer discovery patterns.

Supply Chain

Our supply chain remains central to delivering products on time to our customers. Through tighter operating discipline, sharper planning and deeper digital integration, we have created a responsive and agile supply chain. It has also strengthened coordination across sourcing, warehousing and logistics.

The consolidation of Butterfly warehouses with the broader network further enhanced service efficiency and responsiveness to market demand.

We have also implemented Project ForeSight for digital forecast enrichment to ensure better alignment of production schedules with demand and a more disciplined approach to inventory management by reducing stock out and excess inventory risks. We deepened digital visibility across the supply chain by rolling out a QR code based Track and Trace system across all product lines and 30 warehouses, enabling stronger end to end visibility and better coordination across movement, storage and fulfilment.

Quality

We continued to embed quality across the value chain through stronger systems, supplier collaboration and structured capability building initiatives. Digitisation via the SAP Quality Module strengthened quality control at key checkpoints, keeping our framework aligned with consumer expectations and ensured product reliability. The third edition of our Quality Week saw participation from over 1,900 employees, while plant and supplier Kaizens, field visits and structured training helped deepen engagement and improve problem solving across the ecosystem.

Our QC Story initiative helped to reduce defects and improve processes. In FY2025-26, we completed 70 QC Story projects, 32 internal plant initiatives and 38 vendor led, strengthening manufacturing processes and supplier quality performance.

All these initiatives and enablers have helped to institutionalize quality culture across value chain. Also our and vendors quality improvement projects have earned Accolades through CII and QCFI external platforms.

Read more about quality on page 64

People

Our people remain central to building a stronger, future warehouse integration with ready organisation. We are committed to foster a conducive working environment where every individual is offered the opportunity to grow and thrive in a competitive arena. We have undertaken capability building initiatives through on the job learning and digital interventions. Our enhanced with cross business value chain exposure, consumer immersions and participation in business critical AOP projects, helping build a stronger internal leadership pipeline.

We also continued to strengthen frontline and field capability among our people. ELDP enhanced leadership effectiveness among Area Sales Managers, while Grow with Crompton sharpened the selling, channel management and stakeholder engagement skills of Territory Sales Managers.

We remained committed to supporting employee well being. Our ‘Happy to Help assistance programme, womens safety workshops and SpeakUp platform offered holistic platforms for our people. The HRBPs further reinforced a culture of openness, psychological safety and belonging among employees.

Structured onboarding programmes helped new employees to easily attune to the company culture and understand their role within the organisation. Various other initiatives also helped to build behavioural and functional capability by strengthening business acumen, people management and decision making skills across levels.

Sustainability

We strengthened our environmental agenda across products, operations and the supply chain, with a sharper focus on decarbonisation, resource efficiency, responsible product design and data backed ESG management. Our environmental sustainability framework focuses on three areas: products, infra facilities and the supply chain. This approach helps reduce lifecycle impact, improve resource efficiency at our facilities and strengthen sustainability performance across the value chain. We continued to strengthen product sustainability through higher energy efficiency, lifecycle thinking and renewable energy based solutions. Key priorities included the development of BEE star rated fans and water heaters, solar pump systems, product carbon footprint assessments and Green Pro aligned development. At our facilities, we focused on energy conservation, renewable energy adoption, water stewardship and waste reduction. We strengthened environmental monitoring through regular tracking of air, water and noise parameters, maintained our zero waste to landfill commitment and continued recycling and reuse initiatives across operations.

Besides, we track resource consumption, waste and emissions through our centralised ESG management software, thereby improving visibility and accountability of sustainability parameters across the value chain. Our centralised environmental performance dashboard and Corporate ESG management software now support more systematic, audit ready tracking of energy, water, waste and emissions.

Risk management

We follow a proactive risk management approach to address potential threats while identifying opportunities in a dynamic environment. Our Enterprise Risk Management framework is designed to manage key business risks and support effective decision making. Our risk governance framework brings together the Board Risk Management Committee, the Audit Committee, the Enterprise Risk Management

Committee and the Risk Council. The Board Committee oversees the Risk Management Policy and governance structure, while the Enterprise Risk Management Committee conducts bi annual risk reviews and guides mitigation, supported by ongoing Risk Council reviews. We continue to track and mitigate risks across product, brand and operational areas. Key focus areas include regulatory energy efficiency norms, product quality, sustainability, innovation, consumer feedback and service quality.

Cautionary statement

This document includes forward looking statements about expectedfutureeventsandtheCompanysfinancial and operational performance. These statements are based on assumptions and are subject to inherent risks and uncertainties. Actual results may differ materially from those expressed or place undue reliance on these statements. This document should be read with the assumptions, qualifications and risk factors outlined in the Management Discussion and Analysis section of Cromptons Integrated Annual Report for FY2025 26.

Standalone financial performance

Ratios	2025-26	2024-25
Debtors turnover ratio	8.77	11.45
Inventory turnover ratio (on cost of goods sold)	7.24	6.48
Interest coverage ratio	100.03	27.01
Current ratio	1.36	1.48
Debt-equity ratio	0.00	0.08
Operating profit margin	10.37%	11.82%
Net profit margin	(3.35%)	7.94%
Return on net worth	(7.18%)	16.54%

Consolidated financial performance

Particulars	2025-26 (K crore)	2025-26 (% to revenue from operations)	2024-25 (K crore)	2024-25 (% to revenue from operations)
Revenue from Operations	8,095.52	100.00%	7,864.08	100.00%
Material costs	5,515.21	68.13%	5,273.39	67.06%
Employee Benefit Expenses	681.33	8.42%	639.03	8.13%
Finance Cost	44.03	0.54%	60.48	0.77%
Depreciation & Amortisation Expenses	171.82	2.12%	152.83	1.94%
Advertisement & Sales Promotion	303.16	3.74%	305.75	3.89%
Other Expenses	768.46	9.49%	744.69	9.47%
Total Expenses	7,484.01	92.45%	7,176.17	91.25%
Other Income	65.63	0.81%	68.30	0.87%
Exceptional items	756.44	9.34%	-	0.00%
Profit/(loss) before tax	(79.30)	(0.98%)	756.21	9.62%
Tax Expenses	151.46	1.87%	192.13	2.44%
Profit/(loss) after tax	(230.76)	(2.85%)	564.08	7.17%