Bajaj Electricals has entered FY27 with a modest increase in revenue, rising about 2.3% year‑on‑year. The company’s earnings before interest and taxes (EBIT) margin has jumped to 4.3% from a negative 0.4% in the previous year, showing stronger profitability.
The consumer products division is back on a growth path after several weak quarters, and the lighting solutions segment continues its steady momentum. These two areas have helped lift overall sales.
The sharp improvement in EBIT margin is attributed to better cost control, value engineering, and a more balanced product mix. Calibrated pricing strategies have also contributed to the margin expansion.
However, the company’s cooling products, especially fans, are still struggling. Supply‑side problems such as shortages of printed circuit boards (PCBs) and gas, along with weaker execution, have kept fan sales below expectations.
On a brighter note, non‑summer categories and home appliances, including the Morphy Richards brand, are experiencing healthy double‑digit growth. This trend indicates that Bajaj’s product portfolio is becoming more resilient.
Given the steep inflation environment and the need for additional investments to protect or grow market share, analysts have reduced FY27‑28 earnings estimates by 9.5% to 19.2%. They maintain a HOLD recommendation for the stock.
Overall, Bajaj Electricals shows a cautious but improving outlook for the fiscal year, with profitability gains offset by challenges in specific product segments.