Bajaj Electricals (500031) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 was marked by volatility from GST reforms and early monsoon, leading to a 1.0% YoY revenue decline, mainly due to lower sales in summer products and high channel inventories.

• Lighting Solutions grew 9.6% YoY, driven by both B2C and B2B lighting, while Consumer Products declined 4.1% YoY, impacted by drops in fans and coolers.

• General Trade grew 5% YoY, led by 20% growth in Consumer Lighting; exports increased by 28%.

• The CFO, E.C. Prasad, resigned effective January 26, 2026, after transforming the business and achieving a debt-free status.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved and released, with auditor review confirming compliance.

Financial highlights

• Q2 FY26 consolidated revenue from operations was ₹1,10,714 lakhs, down 1.0% YoY; gross margin improved by 140-200 bps YoY to 31.8%.

• Lighting Solutions revenue grew 9.6% YoY to ₹27,411 lakhs, with EBIT up 46% to INR 22 crore and EBIT margin at 7.9%.

• Consumer Products revenue was ₹83,303 lakhs, down 4.1% YoY, with EBIT margin at 0.9%.

• Net profit after tax for Q2 FY26 was ₹986 lakhs, compared to ₹1,290 lakhs in Q2 FY25; PAT margin at 0.9%.

• Warranty insurance claims resulted in a positive delta of INR 13 crore compared to last year.

Outlook and guidance

• Optimism for the coming quarter due to IMT forecast of strong winters and continued growth momentum in Lighting Solutions.

• Focus remains on increasing top line, improving market share, and investing in brand and digital initiatives.

• Announced price hikes of 1%-3% to address commodity inflation, to be implemented in November/December.

• No explicit forward revenue guidance provided.