Orient Electric Reports 6.4% Revenue Growth in Q2 FY26, Led by Lighting and Switchgear Segment

Orient Electric Limited , a CK Birla Group Company, has reported a resilient performance in the second quarter of fiscal year 2026, despite facing seasonal headwinds. The company's consolidated revenue grew by 6.4% year-on-year to INR 703.00 crores, driven by strong momentum in emerging categories.

Segment Performance

The Lighting and Switchgear segment emerged as the star performer, posting an impressive 18.6% year-on-year growth. This growth was primarily attributed to continued distribution expansion and a sharpened focus on premium products. The company's lighting business, in particular, delivered an industry-leading performance, highlighting the success of its premiumization strategy.

Segment	Performance
Lighting and Switchgear	18.6% YoY growth
Fans	Gained 60 bps market share YTD
Wires	Doubled YoY (on a smaller base)
BLDC Fans	40% YoY growth

Financial Highlights

Metric	Q2 FY26	YoY Change
Consolidated Revenue	INR 703.00 crores	6.4% ↑
EBITDA	INR 38.00 crores	6.4% ↑
EBITDA Margin	5.4%	-
Profit After Tax	INR 12.00 crores	15.5% ↑
Gross Margin	31.5%	-

The company's EBITDA rose 6.4% year-on-year to INR 38.00 crores, maintaining an EBITDA margin of 5.4%. Profit after tax saw a significant increase of 15.5% year-on-year, reaching INR 12.00 crores.

Strategic Initiatives

Orient Electric continued to focus on market expansion and portfolio diversification into emerging categories. The company successfully transitioned the Pune market from master distributor to direct-to-market (DTM), expanding its DTM footprint. Additionally, Madhya Pradesh and Chhattisgarh were added to the company's direct service network, enhancing customer experience through faster response times and more efficient last-mile service delivery.

Product Mix and Innovation

The company's premiumization focus continued to accelerate in Q2. In consumer lighting, premium SKUs contributed about 65% of sales, driven by an expanding portfolio of smart, decorative, and energy-efficient lighting solutions. In the fans segment, the share of premium and decorative models improved by almost 500 basis points, led by IoT-enabled BLDC range.

BLDC fans grew by 40% year-on-year, now contributing to almost 30% of domestic ceiling fan sales. New product developments contributed to nearly one-third of fan revenues this quarter, underscoring the company's innovation-led growth strategy.

Outlook

Orient Electric remains optimistic about the second half of the year. The festive season buildup, coupled with improving retail sentiment and normalization of channel inventory across the industry, is expected to drive stronger demand momentum. With regulatory developments like BEE Star ratcheting for fans effective January 1, 2026, premium and energy-efficient categories are poised for accelerated adoption in the coming years.

Ravindra Singh Negi, Managing Director and CEO of Orient Electric, commented, "Our strategic focus over the recent quarters centered around market expansion and portfolio diversification into emerging categories, translated into a healthy performance for the quarter. Supported by our strategic focus on category expansion and enhanced operational leverage, we strongly believe Orient Electric is well-positioned to outpace industry growth."

As Orient Electric continues to navigate the dynamic market landscape, its balanced approach towards growth with profitability and strategic initiatives in premiumization and distribution expansion are expected to drive sustained performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.77%	+1.38%	+6.45%	-13.19%	-17.59%	+2.41%

Orient Electric , a prominent player in the Indian consumer electrical goods market, has recently announced its Q2 performance and future strategies. Despite facing challenges, the company remains optimistic about its financial targets and is taking proactive steps to address market dynamics.

Q2 Performance and Margin Targets

Orient Electric reported a gross margin of 31.50% in the second quarter, which falls slightly below its target range of 32-34%. However, the company has chosen to maintain its gross margin target, demonstrating confidence in its ability to improve performance in the coming quarters.

Metric	Q2 Result	Target Range
Gross Margin	31.50%	32-34%

Strategic Price Adjustment

In response to changing market conditions, Orient Electric has announced plans to increase fan prices. This decision comes in the wake of new Bureau of Energy Efficiency (BEE) Star Rating requirements.

Key points of the price adjustment:

Planned increase: 3-4%
Reason: Changes in BEE Star Rating requirements

Management's Perspective

The company's management appears to be taking a balanced approach to navigate the current market challenges. By maintaining their gross margin target despite the Q2 dip, Orient Electric signals its commitment to financial health and shareholder value.

The decision to raise fan prices indicates a proactive stance in adapting to regulatory changes while potentially safeguarding profit margins. This move could help offset any increased costs associated with meeting new energy efficiency standards.

Market Implications

For investors and market watchers, these developments highlight several key factors:

Orient Electric's resilience in maintaining financial targets despite short-term challenges.
The company's responsiveness to regulatory changes in the industry.
Potential impact on consumer demand due to the upcoming price increase.

As the market digests this information, it will be crucial to monitor how these strategies affect Orient Electric's performance in the coming quarters, particularly in terms of sales volume and overall profitability.