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 reported mixed financial results for the second quarter of the fiscal year 2025-26. The company's performance shows resilience in some areas while facing challenges in others.

Financial Highlights

For the quarter ended September 30, 2025, Bajaj Electricals reported:

• Revenue of INR 1,107.00 crores, representing a 1% decline compared to the same period last year.
• Profit after tax decreased 23.6% to INR 10.00 crores.
• Gross margins improved by 140 basis points due to value engineering and sourcing efficiencies.

Segment Performance

Consumer Products

• The segment declined 4.1% year-on-year due to drops in fans and coolers.
• General Trade registered 5% growth, mainly due to 20% growth in Consumer Lighting.

Lighting Solutions

• The segment grew 9.6% driven by both B2C and B2B lighting.
• Exports witnessed 28% growth.

Product Launches and Financial Position

• During the quarter, Bajaj Electricals launched 26 new consumer products and 144 new consumer lighting products.
• The company maintains a strong balance sheet with surplus investments of approximately INR 432.00 crores.

Management Changes

In a significant development, Bajaj Electricals announced that its Chief Financial Officer (CFO), Mr. E C Prasad, will be stepping down from his position. Mr. Prasad's resignation will be effective from the close of business hours on January 26, 2026. The company stated that he is leaving to pursue external professional opportunities.

The Board of Directors, at its meeting held on October 31, 2025, accepted Mr. Prasad's resignation and expressed appreciation for his contributions during his tenure. The search for a successor is expected to commence soon to ensure a smooth transition of financial leadership.

Outlook

While Bajaj Electricals faces some headwinds in terms of profitability and revenue growth, the improvement in gross margins suggests that the company is focusing on operational efficiency. The contrasting performances of its consumer products and lighting solutions segments indicate that the company may need to strategize differently for each division to drive overall growth.

The upcoming change in financial leadership with the CFO's departure could bring new perspectives to the company's financial strategies. Investors and market observers will be keenly watching how Bajaj Electricals navigates these changes and works towards improving its market position in the competitive consumer electrical equipment sector.