loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Bajaj Electricals reported a steady Q1FY27

ICICIdirect Research 07 Aug 2026 DISCLAIMER

News: Bajaj Electricals reported a steady Q1FY27, with revenue at ₹1,089 crore (+2.3% YoY/-12.1% QoQ). EBITDA stood at ₹77.1 crore (+131.3% YoY/+78.7% QoQ), with EBITDA margin improving to 7.1% (+395 bps YoY/+360 bps QoQ), while PAT rose to ₹48.4 crore (vs ₹0.9 crore in Q1FY26 and loss of ₹67.5 crore in Q4FY26) and PAT margin improved to 4.4% (+435 bps YoY/+989 bps QoQ). Growth was driven by Consumer Products (+1.7% YoY; ₹820 crore), supported by appliances and Morphy Richards, and Lighting Solutions (+4.4% YoY; ₹269 crore). Gross margin expanded 130 bps YoY due to better product mix, cost optimisation and operating leverage, while alternate channels grew ~11% YoY on strong e-commerce and exports. Management expects Lighting margins to recover over the next 1–2 quarters as legacy low-margin projects are completed, targets Consumer Products EBIT margin of 6–7% over the next two years before gradually reaching its long-term 10% goal, and indicated an aspiration to grow revenue by 8–10% per quarter, assuming the industry expands by at least 6–7%.

View: Bajaj Electricals reported a subdued revenue performance with growth of just 2.3% YoY, with the increase appearing to be largely value-led, implying volumes may have remained under pressure. The surprise was on the sharp improvement in profitability, as EBITDA margin expanded to 7.0% from 3.1% in Q1FY26, driven by stringent cost discipline and an improving product mix through premiumisation. While the margin trajectory is encouraging, its sustainability remains a key monitorable. Management reiterated its confidence in delivering stronger revenue growth going forward and maintained its medium-term EBITDA margin aspiration of 10%, although execution will be critical. At around 1x TTM sales, the stock trades at a reasonable valuation, with a large part of the near-term concerns seemingly reflected in the current price.

Impact: Positive

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere