Bajaj Electricals (500031) Q4 25/26 earnings summary

Executive summary

• Lighting Solutions achieved strong double-digit growth and record margins, offsetting Consumer Products' decline due to delayed summer, high inventory, and market challenges.

• Overall revenue for Q4 FY26 declined 2.1% YoY to INR 1,240 Cr, with Consumer Products down 6.9% and Lighting Solutions up 15.6%.

• Audited standalone and consolidated financial results for FY26 were approved, with unmodified audit opinions.

• Brands maintain strong consumer awareness and stable market shares across key categories.

• Healthy cash flow from operations and a strong balance sheet with INR 934 Cr in cash and equivalents.

Financial highlights

• Lighting Solutions EBIT increased by 28% YoY in Q4; annual turnover grew 9.5% with EBIT margin at 8.5%, the highest ever.

• Q4 FY26 revenue from operations: INR 1,240 Cr (down 2.1% YoY); FY26 revenue: INR 4,81,591 lakhs (up from Rs. 4,44,828 lakhs YoY).

• Q4 PAT: loss of INR 68 Cr (vs. profit of INR 59 Cr YoY); FY26 PAT: loss of INR 91 Cr (vs. profit of INR 133 Cr YoY).

• Consumer Products vertical reported a loss in Q4 due to operating leverage, despite double-digit growth in kitchen appliances.

• Cash and cash equivalents increased to Rs. 22,231 lakhs as of March 31, 2026.

Outlook and guidance

• Lighting Solutions expected to maintain growth momentum, supported by a steady order book and volume/value growth in focus categories.

• Consumer Products outlook cautious due to channel inventory challenges, but new product launches and kitchen appliance growth provide optimism.

• CapEx intensity to reduce by more than half over the next two years, focusing on replacements and innovation.

• Intends to grow ahead of mid-single digit market growth and achieve industry-average profit margins (6%-9%) by FY28-FY29.

• Near-term outlook constructive; long-term stance remains cautiously optimistic.