Orient Electric delivered a resilient performance in Q3 FY26, recording 11% year-on-year revenue growth to INR 906.5 crores despite challenging industry conditions marked by elevated channel inventory and commodity price pressures. The company's diversified multi-product strategy and focus on premiumization helped navigate seasonal softness and regulatory transitions effectively.

Strong Performance Across Key Segments

The company's financial performance demonstrated robust growth across multiple business verticals:

ECD Segment Drives Growth Engine

The Electrical Consumer Durables (ECD) segment emerged as the standout performer with 12.6% year-on-year growth and a remarkable 46.7% quarter-on-quarter increase. This growth was primarily driven by strong double-digit expansion in the appliances category, particularly heating products.

The prolonged and severe winter conditions enabled significant market share gains in water heaters and room heaters. The company successfully launched its Whirlflow fast heating range and extended the "Fatt se Garam" campaign, capitalizing on seasonal demand patterns.

Fan Business Resilience

Despite broader industry softness, the fan business delivered decent single-digit growth, demonstrating the effectiveness of the company's premiumization strategy:

The company successfully transitioned the Pune market to the Direct-to-Market (DTM) model, following earlier transitions in Madhya Pradesh and Chhattisgarh, which have now stabilized.

Lighting & Switchgear Segment Maintains Momentum

The Lighting & Switchgear segment sustained its growth trajectory with 7.1% year-on-year revenue increase. Consumer lighting continued strengthening market share with single-digit volume and value growth, while the product mix shifted favorably toward luminaires.

The "One Brand Voice" campaign featuring MS Dhoni and Kusha Kapila, with the tagline "Fans wale Orient, lights bhi banate hain," resonated strongly across trade and consumer segments. The switchgear and wires business showed promising growth, with wires doubling year-on-year despite operating from a small base.

Financial Performance and Margin Dynamics

The company's financial metrics reflected both growth achievements and margin pressures from commodity inflation:

Gross margin of 29.8% fell slightly below the company's guidance of 32-34%, primarily due to elevated commodity prices, especially copper. To address this challenge, management implemented a 3-3.5% price increase across main categories in January 2026, while wires pricing adjustments occurred every three weeks.

Profit After Tax was impacted by a one-time statutory adjustment of INR 8.7 crores related to implementation of new labor codes, representing a non-recurring exceptional item.

Strategic Initiatives and Market Positioning

The company continued advancing its premiumization strategy with BLDC and premium decorative models collectively contributing over 30% of the domestic ceiling fan mix. The new BEE Star Label norms effective January 1, 2026, are expected to act as a structural catalyst for accelerated BLDC adoption.

E-commerce channels delivered high double-digit growth, supported by improved product assortment, positive customer reviews, and enhanced performance marketing initiatives. The company's substantial marketing investments in digital and contextual platforms strengthened its consumer-centric communication approach.

Outlook and Strategic Focus

Looking ahead, Orient Electric remains focused on building a more premium, digital, efficient, and consumer-centric brand with category leadership in BLDC fans, luminaires, and heating segments while scaling operations in B2B lighting, switchgear, and wires.

The company expects the new BEE norms to drive structural adoption of energy-efficient products, positioning it well to benefit from this transition. Combined with DTM footprint expansion and strengthened digital reach, management expressed confidence in finishing FY26 ahead of industry performance with sustained growth and improved profitability.

Orient Electric Limited has issued a postal ballot notice to shareholders seeking approval for significant modifications to executive compensation packages under its newly introduced Long-Term Incentive Plan 2025. The company has scheduled remote e-voting from January 24, 2026, to February 22, 2026, for shareholders to vote on proposed incentive grants for key leadership positions.

Executive Compensation Restructuring

The postal ballot addresses two primary resolutions concerning long-term incentive modifications for senior executives. The company's board has recommended substantial changes to existing compensation structures to align with the new three-year business plan covering fiscal years 2026-2028.

Managing Director Incentive Modifications

The first resolution proposes modifications to Managing Director and CEO Ravindra Singh Negi's compensation package, replacing previously approved incentives with enhanced long-term benefits:

These new incentives replace the unvested portion of ₹2,62,50,000 cash incentive and 2,00,262 stock options granted earlier in June 2024. The modifications reflect the company's strategic shift toward performance-linked compensation tied to revenue and profitability targets.

President-Strategy Incentive Grant

The second resolution addresses a new long-term cash incentive for Avani Birla, President-Strategy, under the LTI Plan 2025:

This incentive comes in addition to her existing annual remuneration approved by shareholders at the July 29, 2021 Annual General Meeting, which authorized compensation up to ₹5.00 crores annually.

E-Voting Process and Timeline

The company has engaged KFin Technologies Limited to facilitate the remote e-voting process. Shareholders whose names appear in the Register of Members as of the cut-off date of January 16, 2026, are eligible to participate in the voting process.

The postal ballot notice has been sent electronically to shareholders whose email addresses are registered with the company or depositories, in compliance with Ministry of Corporate Affairs circulars.

Strategic Context and Leadership Background

The LTI Plan 2025 introduction reflects Orient Electric's strategic evolution from primarily a fan manufacturer to a comprehensive home solutions provider encompassing lighting and appliances. Ravindra Singh Negi brings over 27 years of experience across telecom and consumer durables sectors, including leadership roles at Bajaj Electricals Limited and Bharti Airtel.

Avani Birla has spearheaded the company's strategic transformation initiatives, including distribution expansion, manufacturing growth, product innovation, and market expansion in lighting and smart home segments. Her background includes experience with GE Capital and Apax Partners, along with degrees from University of Cambridge and Harvard Business School.

Regulatory Compliance and Shareholder Rights

The proposed resolutions require ordinary resolution approval from shareholders, with voting rights proportional to shareholding as of the cut-off date. The company has appointed Atul Kumar Labh as scrutinizer to ensure fair and transparent voting processes.

Results will be announced within two working days after the voting period concludes and will be displayed on the company website, KFin Technologies platform, and communicated to stock exchanges. The resolutions will be considered passed if the requisite majority of shareholders provide their assent through the e-voting process.

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