Bajaj Electricals Limited Earnings Summary — Q1 FY2027
Bajaj Electricals Returns to Profitability as Consumer Products EBIT Turns Positive
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 12.1% sequentially in Q1 FY2027.
- Revenue of ₹1,089 Cr is 2.3% higher year-on-year.
- Revenue has compounded at -3.8% annualised over the last 10 quarters.
- Net profit of ₹48 Cr is 5216.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 33.2% annualised across the period.
- Operating margin stands at 7.1% in Q1 FY2027.
- Operating margin expanded by 402 bps year-on-year.
- Over the last two years operating margin has expanded by 55 bps.
- PBT margin is 6.0%.
- Expense growth of -1.9% remained below revenue growth of 2.3%.
- Operating profit of ₹77 Cr is 136.5% higher year-on-year.
- Operating leverage continues to improve.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,089 | 1,240 | 1,051 | 1,107 | 1,065 | 1,265 | 1,290 | 1,118 | 1,155 | 1,188 |
| Expenses | Stable | 1,012 | 1,200 | 1,043 | 1,050 | 1,032 | 1,172 | 1,202 | 1,067 | 1,080 | 1,138 |
| Operating Profit | Volatile | 77 | 40 | 8 | 57 | 33 | 93 | 87 | 52 | 75 | 50 |
| Operating Margin | Volatile | 7.1% | 3.2% | 0.8% | 5.2% | 3.1% | 7.3% | 6.8% | 4.6% | 6.5% | 4.2% |
| Other Income | Volatile | 35 | -46 | -14 | 8 | 24 | 38 | 13 | 15 | 11 | 22 |
| Interest | Stable | 16 | 13 | 13 | 13 | 18 | 18 | 19 | 17 | 16 | 18 |
| Depreciation | Stable | 31 | 33 | 35 | 37 | 37 | 41 | 36 | 35 | 32 | 30 |
| Profit Before Tax | Volatile | 66 | -52 | -54 | 16 | 2 | 71 | 45 | 15 | 38 | 24 |
| Tax | Volatile | 17 | 16 | -20 | 6 | 1 | 12 | 12 | 2 | 10 | -5 |
| Net Profit | Volatile | 48 | -68 | -34 | 10 | 1 | 59 | 33 | 13 | 28 | 29 |
| Net Margin | Volatile | 4.4% | -5.5% | -3.2% | 0.9% | 0.1% | 4.7% | 2.6% | 1.1% | 2.4% | 2.5% |
Key Takeaways
- Profit before tax surged to ₹66 Cr in Q1 FY27 compared to ₹2 Cr in the same quarter last year, reflecting significant operational recovery.
- The Consumer Products (CP) segment returned to a positive EBIT of ₹32 Cr (3.9% margin) from a loss of ₹14 Cr YoY.
- Revenue growth remained modest at 2.3% YoY, reaching ₹1,089 Cr, amid a challenging operating environment and uneven demand.
- The Lighting Solutions (LS) segment recorded 4.4% growth with revenues of ₹269 Cr, though EBIT slightly decreased to ₹18 Cr from ₹27 Cr YoY.
- The company appointed Krishnan Sundaram (ex-HUL/Vini Cosmetics) as Chief Growth & New Business Officer to drive strategic transformation.
- Board approved a significant increase in the ESOP pool from 5.75 lakh to 30.02 lakh options to attract and retain talent.
- Maintained a strong balance sheet with cash equivalents and surplus investments totaling ₹884 crores.
- Q1 results included an exceptional gain of ₹878 lakhs from the sale of immovable property.
Management Guidance
Management aims for sustainable, profitable growth by focusing on execution, channel consolidation, and cost efficiencies. They expressed confidence in growth opportunities despite input cost inflation and industry-wide price increases.
Sentiment Shift
Improving
After a difficult FY26 characterized by net losses and impairment charges, the return to positive EBIT in the core Consumer Products segment and a sharp recovery in PBT marks a clear operational turnaround.
Outlook
The company is pivoting toward premiumization through brands like Morphy Richards and Nirlep, supported by new senior leadership. While revenue growth is currently low, the focus on margin expansion and operating leverage is expected to drive the bottom line.
From the Annual Report (Key Quotes)
“Consumer Products returned to growth with a positive EBIT margin of 3.9%, reflecting the benefits of our strategic actions, margin expansion, and operating leverage.”
“Our EBIT margins are at healthy 6.6%, driven by disciplined execution and pricing agility.”
“Despite a challenging operating environment... our teams remained focused on execution, channel consolidation, and cost efficiencies.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Bajaj Electricals Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.