Orient Electric , a leading electrical consumer durables company, has reported a 2% year-on-year revenue growth to ₹769.00 crores for Q1, despite facing significant weather-related challenges. The company demonstrated resilience in a quarter marked by mild temperatures and record-breaking rainfall in May that disrupted seasonal sales cycles.

Financial Performance

Orient Electric's EBITDA saw a notable increase of 15% to ₹46.00 crores, with margins expanding by 68 basis points to 6.00%. The company maintained its gross margins at 32.60% and working capital days at 25 days, showcasing efficient operational management.

Segment Performance

The Lighting & Switchgear segment delivered a robust 7% growth, while the Electrical Consumer Durables (ECD) segment remained stable at ₹545.00 crores. However, the ECD segment faced headwinds, particularly in the fan and cooler categories:

• Fan sales reported muted growth
• Cooler sales witnessed a significant decline of over 40%

BLDC Fans and Premiumization

Despite the challenging environment, Orient Electric's focus on premiumization and energy-efficient products yielded positive results:

• BLDC fan sales grew by over 50% year-on-year
• Premium product mix in fans improved by 250 basis points

Distribution and Retail Expansion

The company continued to strengthen its market presence:

• Added approximately 1,800 new retailers under the Direct to Market (DTM) network
• Launched premium BLDC fans

Outlook

Despite the seasonal challenges in Q1, the management remains optimistic about the company's growth trajectory. They expect tailwinds from the upcoming festive season in Q2 and are confident about achieving double-digit EBITDA margins over the next 7-8 quarters.

As Orient Electric continues to navigate the dynamic market environment, its focus on premiumization, innovation, and channel expansion is expected to drive growth and profitability in the coming quarters.

Orient Electric Limited, a prominent player in the electrical consumer durables and lighting sector, has announced its financial results for the first quarter, showcasing modest revenue growth and a significant increase in profitability.

Financial Highlights

Orient Electric reported a revenue of ₹769.08 crore for Q1 FY2026, representing a 1.9% increase from ₹754.86 crore in the same quarter of the previous fiscal year. The company's net profit for the quarter stood at ₹17.52 crore, a substantial 22% increase compared to ₹14.34 crore in Q1 FY2025.

The company's earnings per share improved to ₹0.82 from ₹0.67 year-on-year, reflecting the growth in profitability.

Segment Performance

Orient Electric operates in two primary segments:

1. Electrical Consumer Durables: This segment generated revenue of ₹545.00 crore in Q1 FY2026.
2. Lighting & Switchgear: The segment reported revenue of ₹224.08 crore for the quarter.

Corporate Governance

The Board of Directors approved the unaudited financial results for Q1 FY2026. Additionally, the Board appointed Deloitte Touche Tohmatsu India LLP as the Internal Auditor for FY 2025-26, reinforcing the company's commitment to robust internal controls and financial practices.

Challenges

Orient Electric faces ongoing GST disputes totaling ₹63.20 crores across multiple states. However, the management believes it has a strong case and has not made provisions against these demands.

Outlook

As Orient Electric continues to navigate the dynamic market landscape, its focus on operational efficiency and product innovation is expected to play a crucial role in sustaining growth and profitability in the coming quarters.