Bajaj Electricals Q1 Results: Shares up 16% as profit surges, operating margin doubles

Shares of Bajaj Electricals jumped nearly 16% on Thursday, August 6, after the company reported a notable improvement in profitability for the June quarter, with net profit rising to ₹48 crore from ₹1 crore in the year-ago period, aided by margin expansion despite modest revenue growth.

The surge in the stock was the highest intraday gain it has seen since February 2021.

Revenue increased by 2.3% year-on-year to ₹1,089.4 crore from ₹1,064.6 crore. EBITDA more than doubled to ₹77.2 crore from ₹33.3 crore a year ago, while EBITDA margin expanded to 7% from 3.1%.

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The company said profit before tax rose sharply to ₹66 crore from ₹2 crore in the corresponding quarter last year, while company-level EBIT increased 2.7 times, with the EBIT margin improving to 6.6%.

Within its businesses, the Consumer Products segment reported revenue of ₹820 crore, up 1.7% year-on-year, while EBIT turned positive at ₹32 crore compared to a loss of ₹14 crore in the year-ago quarter, reflecting margin expansion and operating leverage.

The Lighting Solutions business posted revenue of ₹269 crore, up 4.4% year-on-year, although EBIT declined to ₹18 crore from ₹27 crore a year earlier.

Bajaj Electricals said it maintained a strong balance sheet, with cash equivalents and surplus investments of ₹884 crore at the end of the quarter.

Chairman Shekhar Bajaj said the company had started FY27 on an encouraging note despite input cost inflation, uneven summer demand and industry-wide price increases, adding that its focus on execution, channel consolidation and cost efficiencies supported the improved performance.

Managing Director and CEO Sanjay Sachdeva said the Consumer Products business returned to growth with a positive 3.9% EBIT margin, while the company remained confident of delivering sustainable and profitable growth.

Separately, the board approved the appointment of Krishnan Sundaram as Chief Growth & New Business Officer with effect from August 11 and also approved, subject to shareholder approval, an increase in the employee stock option pool under the company's Performance Stock Option Plan 2023.

Shares of Bajaj Electricals are trading 12.5% higher after the results announcement at ₹390.9. The stock is still down 18% so far for the year.