ORIENTELECNSEOctober 27, 2025

Orient Electric Limited

5,723words
50turns
8analyst exchanges
4executives
Management on call
Ravindra Singh Negi
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Arvind Vats
CHIEF FINANCIAL OFFICER
Sambhav Jain
HEAD, INVESTOR RELATIONS
Arshia Khosla
NIRMAL BANG INSTITUTIONAL EQUITIES
Key numbers — 32 extracted
18.6%
lighting, switchgear and wires portfolio delivered strong quarterly revenue, registering a robust 18.6% year-on-year growth, underscoring the success of our strategy. Both switchgears and wires achieve
65%
value-driven and premium offerings. In the consumer lighting, our premium SKUs contributed about 65% of the sales, driven by an expanding portfolio of smart, decorative and energy-efficient lighting
500 basis point
tail lighting. In the fans segment, our share of premium and decorative models improved by almost 500 basis points, led by our feature-rich IoT-enabled BLDC range. Notably, BLDC grew by 40% year-on-year, contrib
40%
by almost 500 basis points, led by our feature-rich IoT-enabled BLDC range. Notably, BLDC grew by 40% year-on-year, contributing to now almost 30% of domestic ceiling fan sales. Our innovation-led
30%
e-rich IoT-enabled BLDC range. Notably, BLDC grew by 40% year-on-year, contributing to now almost 30% of domestic ceiling fan sales. Our innovation-led growth is underscored by our new product deve
6.4%
Orient Electric delivered a resilient performance in Q2 FY '26. Our consolidated revenue grew by 6.4% year-on-year to INR703 crores led by strong momentum in emerging categories. Our Lighting and Swi
INR703 crore
vered a resilient performance in Q2 FY '26. Our consolidated revenue grew by 6.4% year-on-year to INR703 crores led by strong momentum in emerging categories. Our Lighting and Switchgear segment led the growt
60 basis point
rted by the expansion of our DTM footprint. Year-to-date, we've gained our market share by almost 60 basis points. The gross margin for the quarter stood at 31.5%, supported by our strategic investments in prod
31.5%
ve gained our market share by almost 60 basis points. The gross margin for the quarter stood at 31.5%, supported by our strategic investments in product mix optimization and channel strategy. Operati
INR24 crore
hay remained central to our efficiency agenda and has contributed meaningfully to cost savings of INR24 crores in H1. Our EBITDA rose 6.4% year-on-year to INR38 crores with an EBITDA margin of 5.4%. Our prof
INR38 crore
ibuted meaningfully to cost savings of INR24 crores in H1. Our EBITDA rose 6.4% year-on-year to INR38 crores with an EBITDA margin of 5.4%. Our profits after taxes were up by 15.5% year- on-year to INR12 cr
5.4%
of INR24 crores in H1. Our EBITDA rose 6.4% year-on-year to INR38 crores with an EBITDA margin of 5.4%. Our profits after taxes were up by 15.5% year- on-year to INR12 crores. Our performance reaffir
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Guidance — 18 items
Ravindra Singh Negi
opening
“A strong pipeline, coupled with rising project inquiries and onboarding of new authorities, position us well for sustained growth in the coming quarters.”
Ravindra Singh Negi
opening
“Operationally, Project Sanchay remained central to our efficiency agenda and has contributed meaningfully to cost savings of INR24 crores in H1.”
Ravindra Singh Negi
qa
“So width and depth will be very gradual that we do.”
Dhruv Jain
qa
“And how we should think about that going forward through the year?”
Ravindra Singh Negi
qa
“It is going to get into mandatory star rating next year.”
Ravindra Singh Negi
qa
“Hopefully, next year -- next season, we should be able to come back and give you some positive news on market shares gain in Tamil Nadu.”
Ravindra Singh Negi
qa
“Look, Bhargav, when I gave the guidance of -- I said about 6 to 8 quarters.”
Ravindra Singh Negi
qa
“Right now, we would like to continue and maintain the same guidance.”
Bhargav
qa
“So on a full year basis, should we assume that it will be fairly in check given that the same quarter last year, it was about 19 days?”
Rachna Kukreja
qa
“So if you could provide more on that, this will be my first question?”
Risks & concerns — 4 flagged
As I said, there are two things which have been happening fundamentally in the industry is that there have been a pricing pressure that has happened.
— Ravindra Singh Negi
Typically, Q2, Q3, the pricing pressure gets split depending on when is Diwali.
— Ravindra Singh Negi
And these are risk appetites that each channel, each company will do.
— Ravindra Singh Negi
So given that we are a stronger player in water heaters, are we also seeing any kind of similar pressure?
— Natasha Jain
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Q&A — 8 exchanges
Q
I had two questions. First question is on the lighting segment in which in the presentation, you mentioned that the wires business has doubled Y-o-Y. So just want to understand how many states are you working right now with your wires? And what's the plan ahead in FY '26 and '27? And also, if you can throw some light as to what's the contribution of wires as a proportion of this entire segment?
Ravindra Singh Negi
Thank you for the question. And thank you for asking the question on wires because typically, we always get questioned on fans only. So this is a new segment, emerging segment, as we've said. We've now rolled out in our stronger markets in North and in East. There are some markets in the South also. By and large, it's a graded gradual rollout across the country and then deeper rollout within the states. So width and depth will be very gradual that we do. We don't give a breakup of lighting and switchgears and wires separately. But it's on a smaller base, but it's doubled up. More importantly t
Q
Congratulations on a good performance. Sir, my first question is that now that the Hyderabad facility has been commissioned, is there any strategy that we've sort of designed to focus on South India and in particular, Tamil Nadu, where our market share is very low. And clearly, that market is a very large market as far as the cooling products are concerned. So if you can briefly highlight any road map which you have designed to sort of increase the market share in South and in particular, Tamil Nadu? That's my first question.
Ravindra Singh Negi
Thank you, Bhargav. And rightly asked question, and I think we all know there are two big markets which influence FMEG category, both Maharashtra and Tamil Nadu put together, depending on category to category, would range from a 20% to a 25% contribution to the overall. Tamil Nadu is key. There is 1 large player, which has a strong market share. Hyderabad is a facility which is state- of-the-art. Unfortunately, there's been a very soft season, but our facility to produce TPW of a high quality is there. And given the fact that in Hyderabad, our speed, agility to service the market, our logistic
Q
Sir, my question is on the ECD part of the business. Have we taken any price hikes during the quarter? And my second question -- I mean, if yes, then what would be the quantum? And my second question would be on the lighting side. If you could just give the volume breakup in the B2B and B2C part of lighting.
Ravindra Singh Negi
Arshia, thanks for the question. Given the softness, I wish we could have taken a price increase much earlier in the quarter. But towards the end in September, we did take a price increase in fans. It was in the tune of on average about 1.5% averaged out for the category, fans. So it did give a little bit of cushion against the commodity rise. The second question you asked was on the lighting split between -- so we still have a large dependency on the CLUM side. We are typically around 75-25. Hopefully, we should look at some of the leaders in the industry who sit at about 60-40. While we are
Q
Sir, I missed your commentary on gross margins. You said we have made some product portfolio changes and channel-related initiatives. So if you could provide more on that, this will be my first question?
Ravindra Singh Negi
So Rachna, my gross margin is at 31.5% okay. Typically, we have given a guidance of about 32% to 34%. And last 4 quarters, we've been at about 32%, 32.5%. This 1 quarter is a blip, largely inventories, fixed cost of factories, all that. We remain in that guidance of 32% to 34%, which I -- if you were to look at peers, industry peers, it's a right gross margin to work at, given the categories that we deal in. Okay. My second question would be about our DTM strategy. As you mentioned that DTM sales have seen a single-digit growth. But if we see from a long-term perspective from those years since
Q
Sir, two questions. This entire last 6 months have been extremely turmoil for the entire summer product industry. So if you can share in these tough times, what has been the performance in terms of the market share in fans as well as the coolers? What was the performance, let's say, at the end of December quarter and now where are we in the, let's say, market sense across regions also, if you can indicate that will be better? And second and last question, if you can indicate in terms of the commodity prices have started -- have been inching upwards. So what is the plan to pass on the additiona
Ravindra Singh Negi
Thank you, Aniruddha, for the questions. On fans, we subscribe to a third-party data, and we look at it every quarter. On a YTD basis, if we were to look at it, we've gained our market share by 60 basis points. Both our MD markets and the DTM markets have gained market share. There have been some opportunities in some of the markets. Those will always remain. But by and large, we've gained market share across the country. On the coolers, we don't subscribe to a third party. And hence, for me to give you any market share data would be not correct. But in an industry which has declined, I think
Q
Congratulations on a good set of numbers, given that some of your larger peers have come out with their numbers, your performance is definitely resilient compared to peers. And especially on the non-fan category, the growth has been quite good. So congratulations on that. Sir, just one question on geysers. What we've picked up from our feedback on the -- from the channel is that geysers is probably seeing a slight bit of price cut. So is that something that you are also seeing? And given that we are a very strong player in geyser, especially on the e-com side, do you think that could negativel
Ravindra Singh Negi
Natasha, I just missed out for a second. What did you say on the price of water heaters and geysers? Sir, so we're picking up that there is a slight bit of price cut at the primary level on water heaters. So given that we are a stronger player in water heaters, are we also seeing any kind of similar pressure? See, I'll tell you, when you look at typically -- and I don't know where you did, Natasha, the channel check. If you do a channel check in the North, from April till August, there is a graded discounts that people get to preponing and buying it before the actual season starts to happen, w
Q
Thank you, everyone, for coming on the call and especially given the fact that I said it's a Diwali weekend, a little late call from us. I really appreciate your time, and we really love the questions and the push that you all give us, which keeps us on our toes. Thank you for the encouragement on the good results or resilient results, I would say, from Orient. And wishing all of you a very happy Diwali, wishing all of you and your family a very happy and a prosperous Diwali. So thank you. Have a great weekend. Have a great festive. Let's stay connected. Thank you so much.
Management
Q
investor@orientelectric.com
Corporate Office
Orient Electric 240, Okhla Industrial Estate Phase 3 Rd, Okhla Phase III, Okhla Industrial Estate, New Delhi, Delhi 110 020
Speaking time
Ravindra Singh Negi
20
Moderator
9
Rachna Kukreja
6
Arshia Khosla
3
Dhruv Jain
3
Bhargav
3
Aniruddha Joshi
2
Natasha Jain
2
Contact Information
1
Corporate Office
1
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Opening remarks
Arshia Khosla
Thank you, Iqra. I, Arshia Khosla, on behalf of Nirmal Bang Institutional Equities, welcome all of you to the Second Quarter FY '26 Earnings Call of Orient Electric Limited. From the management today, we have Mr. Ravindra Singh Negi, Managing Director and CEO; Mr. Arvind Vats, CFO; and Mr. Sambhav Jain, Head, Investor Relations. I would now request the management to give their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
Ravindra Singh Negi
Thank you, Arshia. Good evening, everyone, and a warm welcome to Orient Electric's Q2 FY '26 Earnings Conference Call. Thank you for joining, especially given the fact that it is a pre- Diwali weekend. So I really appreciate you taking up time late in the evening. So thank you so much. Let me start with a little bit about the quarter. The quarter unfolded against a dynamic and evolving industry background. The government's announcement of sweeping GST reforms, slashing rates across nearly all product categories marked up marquee steps towards simplifying India's indirect tax regime. While these reforms are expected to unlock consumption in H2, particularly in value-driven and premium segments, their rollout created transitional headwinds during the quarter. Anticipation of GST rate cuts led to pricing uncertainty across trade channels for most consumer categories, while none of our categories were impacted, but it had a cash flow or a liquidity issue in the market. This was compounded
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