Bajaj Electricals Q2 FY27 results: net profit up 164.7% to ₹26.10 crore, revenue up 1.5%

How did Bajaj Electricals perform in Q2 FY27?

Bajaj Electricals reported consolidated revenue of ₹1,123 crore in Q2 FY27, up 1.5% from ₹1,107 crore in Q2 FY26 and 3.1% from ₹1,089 crore in Q1 FY27. EBITDA increased 9.3% year on year to ₹67.67 crore, and the margin improved to 6.0% from 5.6%. Against the previous quarter, EBITDA fell 12.7% to ₹77.54 crore and the margin declined 1.1 percentage points from 7.1%.

Consolidated net profit was ₹26.10 crore, up from ₹9.86 crore in Q2 FY26, while basic EPS was ₹2.26 against ₹0.85. Profit before tax was ₹35.25 crore, compared with ₹20.27 crore a year earlier and ₹65.67 crore in Q1 FY27. Net profit fell 46.1% from the previous quarter and EPS fell 46.1% from ₹4.19. On a standalone basis, revenue was ₹1,123.32 crore and profit after tax was ₹25.3 crore.

What changed in Bajaj Electricals' costs and profit?

Against Q2 FY26, total expenses rose 0.6% by ₹6.70 crore to ₹1,101.39 crore, lower than the 1.5% increase in revenue. Cost of materials rose 32.8% by ₹40.18 crore and other expenses increased 16.0% by ₹30.19 crore, while employee cost fell 19.6% by ₹20.88 crore and depreciation fell 17.4% by ₹6.39 crore. Finance costs rose 21.1% by ₹2.68 crore to ₹15.37 crore.

Other income rose 70.3% by ₹5.50 crore to ₹13.32 crore, and there was no exceptional item in Q2 FY27 against no exceptional item in Q2 FY26. Tax expense increased 62.2% by ₹3.51 crore to ₹9.15 crore. Against Q1 FY27, other income fell 48.0% by ₹12.30 crore and tax fell 47.1% by ₹8.14 crore; that quarter also included an exceptional gain of ₹8.78 crore. The presentation attributed the higher other expenses to advertising and promotion investment of c. 3.8% of revenue, up 150bps YoY.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 1.9% by ₹40.95 crore to ₹2,212.68 crore from ₹2,171.73 crore in H1 FY26. Total income increased 1.9% by ₹41.73 crore to ₹2,251.62 crore. Profit before tax rose 348.1% by ₹78.40 crore to ₹100.92 crore, while net profit rose 591.6% by ₹63.71 crore to ₹74.48 crore.

Basic EPS for H1 FY27 was ₹6.45, up from ₹0.93 in H1 FY26. The first-half comparison also includes H1 FY26 revenue of ₹2,171.73 crore, total income of ₹2,209.89 crore and profit before tax of ₹22.52 crore.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹4,259.58 crore against ₹4,260.14 crore at 31 March 2026, while total equity increased to ₹1,656.68 crore from ₹1,594.18 crore. The company reported no borrowings at both dates. Cash and cash equivalents fell to ₹122.04 crore from ₹222.31 crore, inventories rose to ₹705.31 crore from ₹533.52 crore, trade receivables rose to ₹1,154.84 crore from ₹1,141.49 crore and trade payables rose to ₹533.43 crore from ₹467.47 crore.

H1 FY27 operating cash flow was negative ₹49.78 crore, compared with positive ₹11.92 crore in H1 FY26. Investing cash flow fell to ₹36.44 crore from ₹101.0 crore, financing cash flow was negative ₹86.93 crore against negative ₹91.28 crore, and capital expenditure fell to ₹3.04 crore from ₹21.93 crore. The same-day presentation also stated that cash and cash equivalents plus surplus investments totalled c.INR 845 Cr as of 30 September 2026.

How has Bajaj Electricals done over the last 8 quarters?

Across the reported quarterly series, revenue peaked at ₹1,289.72 crore in Q3 FY25 and bottomed at ₹1,050.91 crore in Q3 FY26. It has risen in each of the last two quarters, reaching ₹1,089.36 crore in Q1 FY27 and ₹1,123.32 crore in Q2 FY27, although it remained below the earlier peak.

Profit recovered from a net loss of ₹67.53 crore in Q4 FY26 to ₹48.38 crore in Q1 FY27, before easing to ₹26.10 crore in Q2 FY27. The EBITDA margin peaked at 7.3% in Q4 FY25, fell to 1.2% in Q3 FY26 and was 6.0% in Q2 FY27, after reaching 7.1% in Q1 FY27. Revenue and profit each rose year on year in the last two quarters.

Which businesses drove the quarter?

Consumer Products reported Q2 FY27 revenue of ₹852.72 crore, up 2.4% from ₹833.03 crore in Q2 FY26. Segment EBIT rose to ₹34.07 crore from ₹7.44 crore, and the EBIT margin was 4.0%. The presentation said growth in Kitchen and Domestic Appliances was partly offset by decline in Fans and MR, while Kitchen Appliances, Water Heaters and Steam Irons recorded double-digit growth.

Lighting Solutions reported revenue of ₹270.6 crore, down 1.3% from ₹274.11 crore in Q2 FY26, and EBIT fell to ₹8.39 crore from ₹21.77 crore. Its EBIT margin was 3.1%. The presentation said growth in Consumer Lighting was offset by a decline in Professional Lighting.

What else did the company announce?

The board approved Bajaj Electricals’ unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. On 28 October 2026, it also approved a grant of 88,222 stock options to 7 eligible employees under the Performance Stock Option Plan 2023, with an exercise price of Rs.2 per equity share. No dividend or fund-raising item was disclosed in the same-day filings.

The board approved Shekhar Bajaj’s cessation as Executive Chairman and whole-time executive director from the close of business on 31 December 2026, with his continuation as a non-executive non-independent director proposed from 1 January 2027, subject to shareholder approval. It appointed independent director Sudarshan Sampathkumar as non-executive chairman from 1 January 2027 through 22 May 2028, and approved the reappointment of Sanjay Sachdeva as managing director and chief executive for five years from 1 April 2027 to 31 March 2032, subject to required approvals.

What did Bajaj Electricals' management say?

Management retained its FY28 aspiration for Consumer Products revenue to grow two percentage points faster than the market, illustrated as 10% growth if the market grows 8% and 8% growth if the market grows 6%. It said profitability should move toward close-to-double-digit levels, but did not commit to achieving that margin in FY28 because inflation and growth investment could take precedence. Management also targeted Consumer Products EBITDA above its previous peak within 2-3 years, without confirming the historical benchmark.

Management said BLDC fan production capacity would be in place within 3-6 months, while another answer indicated a further 4-5 months for the build. It said BLDC fans grew 56% YoY and represented about 17% of the portfolio. New consumer-lighting businesses contributed about 20%-25%, led by wires and switchgear across four focus states. A lighting price increase was implemented in October, while a Consumer Products increase was under evaluation.

Management identified commodity costs, geopolitical uncertainty, weak fan volumes, soft demand in some core categories and slower Professional Lighting orders as risks. It said no channel-inventory correction was planned for Q3 FY27, unlike Q3 FY26, and prioritised sell-out and healthy dealer stocks. Sanjay Sachdeva said the company’s longer-term priority was quality of growth rather than pursuing top line through excessive discounting or channel loading.

How did Bajaj Electricals shares react?

The filing appeared in market hours. From the price when the results appeared, the stock was up 1.5% after 5 minutes, up 1.5% after 15 minutes and down 3.9% after 30 minutes. On the reaction day, it closed 1.4% above the previous close of ₹283.0, matching the 1.4% median move for the other Household Appliances stocks.

By the next day's close, the stock was up 0.3% from its pre-results close, against a 1.4% sector median and a 0.7% Nifty Microcap 250 move. Its one-day performance was therefore 1.0 percentage point below the sector median. Earlier results-day moves included 9.9% on 6 August 2026, negative 9.4% on 15 May 2026, negative 2.6% on 9 February 2026 and negative 3.8% on 31 October 2025.

How did other Household Appliances companies do?

Eleven other Household Appliances companies had filed for the quarter by 4 November 2026. Their median revenue growth was 18.2%, compared with Bajaj Electricals’ 1.5% growth. Nine peers grew faster than the company and two grew slower than the company.

Seven of the 11 peers reported higher profit, while profit was compared for all 11 companies. The peer figures therefore show wider revenue growth than Bajaj Electricals, although a majority of the compared peers also reported year-on-year profit growth.