India · Delayed Price · Currency is INR Bajaj Electricals Earnings Call Transcripts
Fiscal Year 2027
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Revenue grew 2.3% year-over-year with EBIT margin rising to 6.6%, driven by cost discipline and premiumization. Consumer products returned to growth, lighting solutions maintained momentum, and e-commerce channels expanded rapidly. Margins are expected to improve further as legacy contracts conclude.
Fiscal Year 2026
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Lighting solutions delivered robust growth and record margins, while consumer products faced challenges from a delayed summer and input cost pressures. Strong cash flow and reduced CapEx support future growth, with a focus on innovation and margin recovery.
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Lighting Solutions posted 9% revenue growth and margin expansion, while Consumer Products revenue fell 25% due to channel inventory normalization. Cash flow improved, and new product launches in switchgear, solar, and wires support future growth. Inventory and cost controls are expected to drive margin recovery in FY 2027.
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Q2 FY26 saw strong lighting solutions growth and improved gross margins, but consumer products faced a 4% revenue decline due to GST reforms and early monsoon. The company is optimistic for H2, focusing on premiumization, new launches, and the Morphy Richards acquisition.
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Q1 FY26 saw significant sales disruption from early monsoon, with seasonal products declining sharply but non-seasonal and Lighting Solutions performing well. Lighting Solutions achieved record EBIT margin, and the company is entering the switchgear segment while restructuring Nirlep. Outlook remains cautious, hinging on festive season performance.
Fiscal Year 2025
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Q4 saw 6.5% revenue growth and a 191% jump in profit before tax, led by strong consumer products performance and margin expansion. Management targets double-digit EBIT in three years, with continued focus on premiumization, brand investment, and new manufacturing initiatives.
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Revenue grew 5% year-over-year to INR 1,290 crores, with adjusted PBT up 21%. Consumer products saw 8.5% growth and margin expansion, while lighting faced price erosion but showed volume gains in focus markets. Brand investments and premiumization remain strategic priorities.
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Revenue and profit remained flat year-over-year, with margins pressured by higher costs and investments. Market share declined in fans and appliances due to price hikes and competition, but lighting margins improved and coolers saw strong growth. Festive demand and rural uptick are expected to drive better results in Q3.
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Profitability improved sequentially, with Consumer Products returning to growth and Lighting Solutions achieving double-digit EBIT margins. Strong cash flow and liquidity support ongoing investments, while management expects a robust second half driven by rural recovery and operational improvements.
Fiscal Year 2024
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Leadership transition is underway with the MD’s resignation, but strategic direction and operational plans remain unchanged. The company is debt-free, financially strong, and expects continued growth through digital transformation, new product launches, and expanded market initiatives.