Bajaj Electricals Ltd Management's Take

• 📊 Revenue at Rs.106,550 lakhs this quarter, with 9% growth in Lighting and 25% decline in Consumer Products.
• ⚠️ Experienced a standalone net loss of Rs.2,921 lakhs due to a one-time Rs.2,889 lakhs exceptional charge related to labor codes.
• 💡 Lighting EBIT margin rose to 7% from 2% YoY; Consumer category impacted by negative margins and inventory costs.
• 💰 Operating cash flow positive at Rs.211 crore; cash and equivalents total Rs.620 crore as of Dec 31, 2025.
• 🔄 Strategic shift to secondary off-take model ongoing; channel inventory being normalized.
• 📈 Price hikes of 2%-5% effective February 2026 expected to mitigate commodity cost pressures.
• 🌞 Inventory reduction by 30% in Consumer Products, but summer-related product excess remains a challenge.
• 🚀 Expansion planned into new categories like switchgear, solar, and wires using current distribution network.

📉 Financial Highlights

• Bajaj Electricals reported total income of Rs.106,550 lakhs in Q3 FY26.


• Lighting Solutions segment grew 9%, while Consumer Products revenue declined 25% amid strategic shifts.


• Standalone net loss of Rs.2,921 lakhs due primarily to a one-time Rs.2,889 lakhs charge from new National Labor Code liabilities.

💡 Operational Performance

• Lighting Solutions improved EBIT margin to 7% from 2% YoY, driven by growth in ceiling and outdoor lighting products.


• Consumer Products experienced negative EBIT margins from operating de-leverage and excess inventory costs.


• Primary billing to distributors reduced to adopt a "secondary off-take led pull" model, aiming to normalize channel inventory by cutting inventory days by 30%.

🔧 Strategic Initiatives

• Ongoing comprehensive logistics, space optimization, and fixed cost review through the Reach, Reliability, Expansion Program.


• Plans to expand into switchgear, solar solutions, and wires via existing distribution, though revenue targets are not specified.

📈 Future Outlook

• Channel normalization and structural shifts expected to be clearer in FY27, with ongoing recovery in next quarter.


• Price increases of 2%-5% implemented starting February 1, 2026 to offset commodity inflation pressures.


• Preparations underway for BEE 2026 transition on fans, with expectations of manageable regulatory adaptation.

⚠️ Risks and Concerns

• Short-term revenue impact from 25% decline in Consumer Products despite being a strategic move.


• Excess inventory in seasonal products like fans and coolers could pose demand risk if summer sales do not improve.


• Commodity price volatility could affect margins despite recent price hikes.


• Entering competitive wires and switchgear markets presents challenges against established players.

🏢 Corporate Developments

• Appointment of Mr. Pramod Agrawal as Additional Independent Director for a five-year term.


• Board-approved sale of Mumbai office premises for Rs.26.53 crore in a related-party deal with Bajaj General and Life Insurance.


• Despite primary sales decline, stable market share indicated by tertiary sales metrics in key categories.