Orient Electric Q2 FY27 results: net profit up 124.4% to ₹27.06 crore, revenue up 25.2%

How did Orient Electric perform in Q2 FY27?

Orient Electric reported standalone revenue of ₹879.34 crore in Q2 FY27, up 25.2% from ₹702.61 crore in Q2 FY26. EBITDA rose 49.7% to ₹56.79 crore, while margin expanded by 1.1 percentage points to 6.5%. Profit before tax was ₹36.47 crore, up 123.7%, and net profit rose 124.4% to ₹27.06 crore. Basic EPS increased from ₹0.57 to ₹1.27.

Against Q1 FY27, revenue fell 7.4% from ₹949.76 crore and EBITDA declined 14.7% from ₹66.60 crore. EBITDA margin narrowed by 0.5 percentage points to 6.5%. Profit before tax was ₹36.47 crore, down 14.1% from ₹42.46 crore, while net profit fell 14.1% to ₹27.06 crore and basic EPS declined from ₹1.48 to ₹1.27. The results are presented on a standalone basis.

What changed in Orient Electric's costs and profit?

Total expenses increased 22.9% to ₹846.79 crore from ₹688.81 crore in Q2 FY26. Cost of raw materials and components consumed rose by ₹96.85 crore, or 58.3%, to ₹262.97 crore, while employee benefit expense increased by ₹7.62 crore to ₹83.38 crore and other expenses rose by ₹7.20 crore to ₹115.04 crore. Finance costs fell by ₹0.05 crore to ₹4.98 crore, while depreciation and amortisation increased by ₹0.16 crore to ₹19.26 crore.

Other income increased by ₹1.42 crore, or 56.8%, to ₹3.92 crore from ₹2.50 crore. There was no exceptional item in Q2 FY27 or Q2 FY26. Tax expense rose by ₹5.17 crore to ₹9.41 crore, compared with a ₹20.17 crore increase in profit before tax to ₹36.47 crore. Orient Electric’s earnings presentation attributed EBITDA margin expansion to operating leverage and cost optimisation, while the earnings call cited persistent commodity inflation in copper and aluminium as pressure on gross margins.

How did the first half of FY27 go?

In H1 FY27, Orient Electric reported revenue of ₹1,829.1 crore, up 24.3% from ₹1,471.69 crore in H1 FY26. Total income increased 24.4% to ₹1,837.38 crore from ₹1,476.67 crore, and profit before tax rose 97.5% to ₹78.93 crore from ₹39.96 crore. Net profit increased 97.9% to ₹58.55 crore from ₹29.58 crore, while basic EPS rose to ₹2.74 from ₹1.39.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,690.59 crore, up from ₹1,666.61 crore at 31 March 2026, and total equity rose to ₹804.61 crore from ₹760.1 crore. Borrowings increased to ₹37.86 crore from ₹26.41 crore, while cash declined to ₹25.06 crore from ₹31.91 crore. Inventories increased to ₹517.68 crore from ₹425.56 crore, trade receivables fell to ₹570.36 crore from ₹619.43 crore, and trade payables declined to ₹582.7 crore from ₹600.74 crore.

Operating cash flow in H1 FY27 was ₹7.78 crore, compared with negative ₹41.7 crore in H1 FY26. Investing cash flow was ₹8.42 crore against ₹1.59 crore, while financing cash flow was negative ₹23.05 crore against positive ₹5.32 crore. Capital expenditure was ₹23.16 crore in H1 FY27, up from ₹14.56 crore in H1 FY26.

How has Orient Electric done over the last 8 quarters?

Revenue peaked at ₹949.76 crore in Q1 FY27 and was ₹879.34 crore in Q2 FY27, compared with the period low of ₹702.61 crore in Q2 FY26. Net profit peaked at ₹40.28 crore in Q4 FY26 and fell to ₹27.06 crore in Q2 FY27, while the period low was ₹12.06 crore in Q2 FY26. EBITDA margin reached its high of 8.2% in Q4 FY26 and its low of 5.4% in Q2 FY26.

Revenue rose year-on-year in each of the last eight quarters, while profit rose year-on-year in each of the last three quarters. In the latest quarter, revenue and profit moved lower sequentially from Q1 FY27, and EBITDA margin also declined from 7.0% to 6.5%.

Which businesses drove the quarter?

Electrical consumer durables generated revenue of ₹550.5 crore in Q2 FY27, up 24.9% from ₹440.91 crore in Q2 FY26. Segment EBIT rose to ₹52.24 crore from ₹36.3 crore, and the reported EBIT margin was 9.5%. Management said fans grew at a high-double-digit rate, both direct-to-market and master-distributor markets delivered double-digit growth, and BLDC fans grew approximately 26% year-on-year.

Lighting and switchgear revenue rose 25.7% to ₹328.84 crore from ₹261.7 crore in Q2 FY26. Segment EBIT increased to ₹40.84 crore from ₹34.17 crore, with a reported EBIT margin of 12.4%. Management said lighting delivered double-digit growth, wires more than doubled year-on-year, and switchgear and switches recorded high-double-digit growth.

What else did the company announce?

Orient Electric’s board approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026 on 15 October 2026. The results had undergone limited review by Price Waterhouse Chartered Accountants LLP, whose review conclusion was unmodified. The company also filed its investors’ release for the results on the same day.

On 15 October 2026, Orient Electric granted 24,333 stock options to an eligible employee under the Orient Electric Employee Stock Option Scheme – 2019. The exercise price was ₹173.86 per option, with each option convertible into one equity share of ₹1 face value. The options vest 40% at the end of the first anniversary and 60% on 31 March 2028, within an exercise period of four years from the respective vesting dates.

What did Orient Electric's management say?

Management maintained medium-term revenue growth guidance of more than 15% CAGR over three to five years and the long-term gross-margin aspiration of about 32%. It said working capital should return to about 20 days over the next four to six quarters through channel financing and direct-to-market maturation, while Project Sanchay savings in FY27 should cross the previous year’s about ₹70 crore, with accruals skewed towards H2. The company maintained the long-term gross-margin target but pushed its double-digit EBITDA-margin aspiration to the next four to six quarters.

Management said price increases of 3–6% in Q2 and about 3% in October covered 80–100% of input-cost inflation category-wise, with further pricing actions in wires every two to three weeks. It identified persistent commodity inflation, global and geopolitical uncertainty affecting supply-chain visibility, and unorganised competition as risks. It also said BLDC fans represented about 30% of the ceiling-fan mix against an industry level of 17–18%, while wires more than doubled year-on-year and switchgear and switches recorded high-double-digit growth.

Ravindra Singh Negi, Managing Director and CEO, said: “Over the long term, trending towards a double-digit EBITDA margin remains our aspiration, supported by mix improvement, productivity, and sustained cost optimization. I see at some point in the next four to six quarters, at least in H2 onwards, you will see us trending far closer to that.” He also said: “My guidance in the long run stays at about 32%, and that's what we are working. What we can mitigate through pricing, we're maximizing that is what I can assure everybody on the call.”

How did Orient Electric shares react?

Orient Electric’s stock was down 0.4% five minutes and 0.1% after 15 minutes from the price when the filing appeared, before rising 0.6% after 30 minutes. It closed the reaction day 16.7% above its pre-results close of ₹174.00. By the next day’s close, the stock was up 15.0% from that pre-results close, and by the fifth session it was up 5.2%.

The Household Appliances industry median moved 0.7% lower on the reaction day and 0.8% lower by the next close. Orient Electric therefore outperformed the sector by 17.3 percentage points on the reaction day and 15.8 percentage points by the next close. Earlier reaction-day moves were 6.9% on 22 January 2026, negative 3.1% on 8 May 2026 and negative 4.0% on 22 July 2026.

How did other Household Appliances companies do?

Eleven other Household Appliances companies had filed results for the quarter by 4 November 2026. Their median revenue growth was 15.1%, compared with Orient Electric’s 25.2% growth in Q2 FY27. Eight peers grew more slowly than the company, while three grew faster. Seven of the 11 peers reported higher profit.