Orient Electric (ORIENTELEC) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw resilient revenue growth of 6.4% year-over-year to ₹703 crore, despite transitional headwinds from GST reforms, early monsoons, and seasonal softness.

• PAT increased 15.5% year-over-year to ₹12 crore, and EBITDA rose 6.4% year-over-year to ₹38 crore.

• Festive season momentum, improved consumer sentiment, and premiumization supported late-quarter recovery and market share gains.

• Unaudited financial results for the quarter and half-year ended September 30, 2025, were approved and reviewed by statutory auditors with no material misstatements noted.

• H1 FY26 sales reached ₹1,472 crore, up 4.0% year-over-year, with PAT up 19.4% year-over-year to ₹30 crore.

Financial highlights

• Consolidated revenue for Q2 FY26 was ₹703 crore, up 6.4% year-over-year, led by emerging categories.

• Lighting and switchgear segment revenue grew 18.6% year-over-year; wires business more than doubled on a low base.

• Gross margin for Q2 FY26 was 31.5%, slightly below the usual 32-34% range.

• EBITDA margin held at 5.4% for the quarter; PAT margin improved to 1.7%.

• Working capital days increased to 32 from 19 year-over-year, expected to normalize in the next two quarters.

Outlook and guidance

• Optimism for H2 driven by festive demand, retail sentiment, and inventory normalization.

• Regulatory changes (BEE Star ratcheting for fans) expected to boost premium and energy-efficient product adoption.

• Double-digit EBITDA margin guidance maintained, with operating leverage from emerging categories expected.

• Strong pipeline in Lighting B2B and continued focus on premiumisation and technology-led products.

• The company continues to defend against significant tax and GST demands, with management confident in their legal position and no provisions made.