Crompton bought Butterfly for growth, then wrote off ₹716 crore of it

Crompton Greaves Consumer Electricals, one of India's largest makers of fans, lighting and pumps, bought Butterfly Gandhimathi Appliances in 2023 to push into small domestic appliances — mixers, grinders and kitchen gadgets — a category where it had little presence. The acquisition was meant to hand Crompton a ready-made brand and shelf position in a fast-growing segment.

In results announced on 13 May 2026, Crompton took a one-time, non-cash impairment of ₹716 crore (about $84 million) against the Butterfly acquisition — goodwill and asset values it judged could no longer be recovered. The charge drove a consolidated net loss of ₹531–534 crore for Q4 FY26, against a profit of roughly ₹170 crore a year earlier, and left the full fiscal year in a net loss of ₹230.76 crore.

Crompton's underlying business was not collapsing: revenue rose about 11% in the quarter and the company said it had reached zero net debt. The loss was the bill for an acquisition bet that did not pay — purchased value written down three years after it was made.