Bajaj Electricals’ Profit Rises 2.6-Fold Despite 1.5% Revenue Growth in Second Quarter
Key Facts
Bajaj Electricals announced on October 28 its results for the second quarter of fiscal 2026-2027, ended September 30, reporting revenue from operations of 1,123 crore rupees, up 1.5% year on year. Net profit after tax rose to 26 crore rupees, 2.6 times its level a year earlier, according to the results presentation published on the investor relations page. The company’s operating profit also rose 51% to 50 crore rupees. The figures show a clear improvement in profit alongside limited revenue growth. Consolidated basic earnings per share were 2.26 rupees, compared with 0.85 rupees in the corresponding quarter of the previous fiscal year.
Most of the revenue growth came from the consumer products segment, which recorded 853 crore rupees, up 2.4% from the corresponding period. The segment’s operating profit before interest and tax improved to 34 crore rupees, compared with 7 crore rupees a year earlier, according to the company. Bajaj said the improvement in profitability reflects its continued focus on consolidating sales channels, cost efficiency and disciplined execution. In a report carried by Moneycontrol, Prabhudas Lilladher said consumer products growth included home appliances and kitchen products. It added that sales of BLDC fans grew 56%, accounting for about 17% of the fan portfolio.
By contrast, revenue from the lighting solutions segment fell 1.3% to 271 crore rupees, from 274 crore rupees in the corresponding quarter. The segment’s operating profit before interest and tax declined to 8 crore rupees, compared with 22 crore rupees a year earlier. Prabhudas Lilladher estimated the segment’s operating profit margin at 3.1%, down from 7.9% in the second quarter of fiscal 2025-2026. The report attributed the margin decline to product mix and negative operating leverage. The figures highlight the contrast between improving consumer products profits and pressure on the lighting business.
The company said it had cash equivalents and surplus investments worth 845 crore rupees. It also launched 282 new stock-keeping units across its portfolio during the quarter, according to the results presentation. In a report dated October 29, Prabhudas Lilladher maintained its “Hold” recommendation on the stock and set a target price of 281 rupees. The firm cut its earnings estimates for fiscal 2027-2028 and 2028-2029 by 8.4% and 8.0%, respectively. It said the estimate cuts reflect weak demand for consumer products and a slowdown in the fans segment.