Bajaj Electricals Limited , a leading player in the consumer electrical equipment sector, reported mixed results for the second quarter of fiscal year 2026, with its Lighting Solutions segment outperforming while Consumer Products faced headwinds.

Consumer Products Segment Faces Challenges

The Consumer Products division experienced a 4% decline in revenue, primarily due to:

• Uncertainties surrounding GST reforms
• Extended monsoons affecting demand
• High channel inventory, particularly in summer products

Despite these challenges, some product categories showed resilience:

• Ceiling fans registered double-digit growth
• Non-seasonal products like mixers, irons, and water heaters saw combined single-digit growth

Lighting Solutions Segment Delivers Strong Performance

The Lighting Solutions vertical emerged as a bright spot in Bajaj Electricals' Q2 FY26 results:

• Revenue growth of 9.6% year-on-year
• EBIT margin improved to 7.9% from 6% in the previous year
• EBIT increased by 46% from INR 15 crores to INR 22 crores year-on-year

Financial Highlights

Key Developments and Future Outlook

1. Switchgear Launch: Bajaj Electricals launched switchgears in August 2025, with encouraging initial response from channel partners.

2. Morphy Richards Acquisition: The Board has approved the acquisition of the Morphy Richards brand, which is expected to be value accretive from day one.

3. Premiumization Strategy: The company continues to focus on premiumizing its product portfolio, with premium product contributions increasing by 100 to 300 basis points across categories.

4. Cautious Optimism: Management remains cautiously optimistic about future quarters, citing IMD forecasts of strong winters.

5. Price Hikes: The company has announced price hikes of 1-3% for fans, to be implemented in November-December 2025, in response to inflationary pressures.

Management Commentary

Shekhar Bajaj, Chairman of Bajaj Electricals, stated, "We remain confident in our strategic direction and the resilience of our business model. With continued focus on operational excellence, innovation, and market responsiveness, we are well-positioned to navigate short-term headwinds and unlock sustained value for our stakeholders."

Sanjay Sachdeva, MD and CEO, added, "While the Consumer Products vertical faced challenges, our Lighting Solutions vertical has done exceptionally well. We are observing price stabilization in the LED segment, which has augmented revenue growth."

As Bajaj Electricals navigates through a challenging market environment, the company's focus on premiumization, new product launches, and strategic acquisitions like Morphy Richards may help in driving growth in the coming quarters. However, the management remains cautious about the near-term outlook, given the ongoing market uncertainties and high channel inventory levels.

Bajaj Electricals Limited , a prominent player in the consumer electrical equipment sector, has announced a revision to its Chief Financial Officer's departure timeline. The company has updated the relieving date of Mr. E C Prasad from the previously announced January 26, 2026 to December 31, 2025.

Management Change Update

The Board of Directors approved the revision through a circular resolution passed on December 20, 2025. The change comes at Mr. Prasad's request following the completion of handover responsibilities. The company has waived the balance notice period in accordance with its policies and applicable laws.

Previous Financial Performance

For the quarter ended September 30, 2025, Bajaj Electricals had reported mixed results with revenue of ₹1,107.00 crores, representing a 1.00% decline compared to the same period last year. The company's profit after tax decreased 23.60% to ₹10.00 crores, though gross margins improved by 140 basis points due to value engineering and sourcing efficiencies.

Segment Performance Overview

The Consumer Products segment declined 4.10% year-on-year due to drops in fans and coolers, while General Trade registered 5.00% growth, mainly due to 20.00% growth in Consumer Lighting. The Lighting Solutions segment grew 9.60% driven by both B2C and B2B lighting, with exports witnessing 28.00% growth.

Regulatory Compliance

The company has filed the necessary disclosures under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The updated details regarding Mr. Prasad's resignation have been communicated to both BSE Limited and National Stock Exchange of India Limited.

Financial Position

Bajaj Electricals maintains a strong balance sheet with surplus investments of approximately ₹432.00 crores. During the previous quarter, the company launched 26 new consumer products and 144 new consumer lighting products, demonstrating its continued focus on innovation and market expansion despite the leadership transition.