BAJAJELECNSEQ2FY26November 6, 2025

Bajaj Electricals Limited

6,679words

152turns

15analyst exchanges

6executives

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Management on call

Shekhar Bajaj

CHAIRMAN – BAJAJ ELECTRICALS LIMITED

Sanjay Sachdeva

MANAGING DIRECTOR AND

E.C. Prasad

CHIEF FINANCIAL OFFICER – BAJAJ ELECTRICALS LIMITED

Vishal Chadha

CHIEF OPERATING OFFICER,

Rajesh Naik

CHIEF OPERATING OFFICER,

Dhruv Jain

AMBIT CAPITAL PRIVATE LIMITED

Key numbers — 34 extracted

rs,

gh volatility in the electrical and consumer durable sector, our non-seasonal products , like mixers, iron, and water heaters, have done well, registering a combined single- digit growth. Further, our

9.6%

g Solutions vertical has delivered a standout performance for this quarter. It not only delivered 9.6% revenue growth, but also delivered a strong EBIT margin of 7.9%. We remain confident in our strat

7.9%

is quarter. It not only delivered 9.6% revenue growth, but also delivered a strong EBIT margin of 7.9%. We remain confident in our strategic direction and the resilience of our business model. With th

46%

augmented revenue growth. Not only has it delivered revenue growth of 9.6%, but the EBIT is up by 46% from INR 15 crores to INR 22 crores on a year-to- year basis. Year-to-date margins in the busine

INR 15 crore

revenue growth. Not only has it delivered revenue growth of 9.6%, but the EBIT is up by 46% from INR 15 crores to INR 22 crores on a year-to- year basis. Year-to-date margins in the business remain at 9.2%,

INR 22 crore

Not only has it delivered revenue growth of 9.6%, but the EBIT is up by 46% from INR 15 crores to INR 22 crores on a year-to- year basis. Year-to-date margins in the business remain at 9.2%, which is very en

9.2%

crores to INR 22 crores on a year-to- year basis. Year-to-date margins in the business remain at 9.2%, which is very encouraging. Further, consumer lighting witnessed double-digit volume and value gr

demand. Further, when we dissect the results, while at an overall level, CP revenues are down by 4%, but certain categories have done well. These are categories like mixers, iron, and water heaters

INR13 crore

laim received is much higher than the expenses. And the delta, what you are seeing there is about INR13 crores. Achal Lohade: So is it fair to say that -- last year was impacted. Yes. So, going forward, do

2.3%

e able to quantify how much that was in 2Q'26 versus 2Q'25? EC Prasad: So we have spent about 2.3% this year as against 2.5% last year. Achal Lohade: Sorry, when you're saying this year, do you

2.5%

uch that was in 2Q'26 versus 2Q'25? EC Prasad: So we have spent about 2.3% this year as against 2.5% last year. Achal Lohade: Sorry, when you're saying this year, do you mean for the quarter or th

200 basis point

's a continuous process that we have taken up. We have seen a significant improvement of close to 200 basis points on the gross margin. And this is likely to continue. I mean, there will be even more benefits co

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Guidance — 20 items

Shekhar Bajaj

opening

“Furthermore, with the IMD forecast of strong winters, we are optimistic for our coming quarter.”

Sanjay Sachdeva

opening

“Our strategy to increase our revenue contribution in focused categories like ceiling lights and outdoor lights is showing results, and we expect the traction to continue going forward, including in quarter 3.”

Sanjay Sachdeva

opening

“And we expect, again, to continue this in the near future.”

Sanjay Sachdeva

opening

“Over the next few quarters, our focus will be to increase top line and improve market share, while continuing to spend on the brands and other initiatives like go-to-market, digitization, manufacturing excellence, etc.”

Sanjay Sachdeva

opening

“We are very positive about this acquisition and expect this to play out well in the future.”

Renu Baid

“And how do you plan to offset the inflationary pressures through what range of price hikes are being planned in this quarter or so?”

Vishal Chadha

“And coming to the second question around inflationary pressures, we will be -- we have already announced, in fact, price hikes in fans due to commodity price increase, and we are keeping a close watch.”

Vishal Chadha

“And as and when we believe the market has the capability to absorb, as well as our own objectives, we will be taking further price hikes accordingly.”

Renu Baid

“And what kind of investments have we made or plan to make in terms of GTM, as well as on the product performance and launch here?”

EC Prasad

“And there is no investment for this project.”

Risks & concerns — 15 flagged

The high channel inventory has put pressure on our sales to our distributors in trade.

— Sanjay Sachdeva

Even in Q2, the high channel inventory has put pressure on primary sales, which is, our sales from us to our distributors and to our channel partners.

— Sanjay Sachdeva

The drag in revenue is due to seasonal products like TPW fans, and air coolers.

— Sanjay Sachdeva

As I can see from your presentation, your fan total have declined in spite ceiling fan growing by double digit means the TPW fan has seen a significant decline.

— Keshav Lahoti

Possible to quantify a range about what is the decline of TPW fan as well as cooler?

— Keshav Lahoti

So, we see the lighting margin is still healthy, but although there is a decline sequentially, what is the reason for the same?

— Keshav Lahoti

So, there will be no drag in the margins.

— Rajesh Naik

So, Lighting, I can see there is a sequential decline, like EBIT margin is 8%, while last quarter, it was 11% sequentially.

— Keshav Lahoti

And whether you have given higher incentives for this spend, so there is a decline sequentially?

— Keshav Lahoti

Sir, in your presentation, you've written that there is a single-digit value decline in domestic appliances.

— Natasha Jain

Sir, because just below that, you've written that coolers have witnessed a double-digit value decline.

— Natasha Jain

So, there is no product category basically with a single-digit value decline, as mentioned in the presentation?

— Natasha Jain

And with the channel already carrying a high inventory, we do expect pressure on it.

— Vishal Chadha

So, any -- already, are you seeing any kind of pricing pressure amongst the brands or competition?

— Natasha Jain

At a brand level, Nirlep has seen a decline, and Bajaj has seen growth.

— Vishal Chadha

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Q&A — 15 exchanges

Best wishes for Diwali to everyone. My first question pertains to understanding a bit more about -- so what has been your readthrough of demand pickup after the implementation of GST, the festive offtake, Diwali offtake in October? How has it been so far? And how do you plan to offset the inflationary pressures through what range of price hikes are being planned in this quarter or so? That's the first question.

Vishal Chadha

This is Vishal. The initial estimations, which we have about the festive month, are that it's muted. And coming to the second question around inflationary pressures, we will be -- we have already announced, in fact, price hikes in fans due to commodity price increase, and we are keeping a close watch. And as and when we believe the market has the capability to absorb, as well as our own objectives, we will be taking further price hikes accordingly. Sure. On the launch of switchgears earlier this year, how has the reception of this product been from the trade channel? And what kind of investmen

Sir, if you could talk about these one-offs or recurring, if you could explain, you've talked about the warranty insurance claim. What is the like-to-like number in the previous quarters? How do we see this in terms of the numbers? Is there a positive net-net, Y-o-Y, Q-o-Q? If you could give a comparable number for 2Q'25 and also 1Q'26?

EC Prasad

So, this is the warranty insurance that we have taken on our warranties that we give. So last year, it was an expense, actually. So, the expenses far exceeded the claims that we have received. So, this year, the claim received is much higher than the expenses. And the delta, what you are seeing there is about INR13 crores. So is it fair to say that -- last year was impacted. Yes. So, going forward, does it make sense to say that you will have a higher likelihood of claims than additional expenses? Is that a fair assessment? Yes, yes, yes. Okay. Second question I had in terms of the A&P spend;

I had a question about the acquisition of Morphy Richards. So, when will this acquisition be value accretive to us?

EC Prasad

So it will be value accretive from day one. We are still in the process of getting the agreement signed. So hopefully, in a month's time, we should be done with the agreement, and then the value accretion will start immediately. Okay. So, how much incremental revenue do you see from this acquisition in H2? So, we will save on the royalty that we are giving to the Morphy, the parent company. So, quantum, we normally don't disclose, but we'll be saving on the royalty, which is a significant amount. Okay. So, like, can you quantify the royalty that you will be saving? No, we cannot -- because it'

Sir, my first question is, what is the revenue contribution share for new product development in this quarter? I think we have an ambition to reach 40% of revenue. And what is the timeline to achieve those targets? And what is the primary source for this innovation, like internal R&D or OEM partnerships, etc.?

EC Prasad

So, Mr. Balasubramanian, your voice is not very clear. What I could hear was the contribution from NPD. So that's about 40%. So, when I say NPD, that is a product that has been launched over the last 2 years. Okay, sir. And sir, for Nirlep restructuring, what is the potential one-time financial impact? And what kind of post-restructuring, what kind of impact do you expect? So as of now, where we stand, we don't see any major impact. We are still evaluating the various possibilities. And as and when we are closer to the deal, we'll let you know. Okay. Just one small question. I think the launch

As I can see from your presentation, your fan total have declined in spite ceiling fan growing by double digit means the TPW fan has seen a significant decline. Possible to quantify a range about what is the decline of TPW fan as well as cooler? And what is the TPW and ceiling fan mix?

Vishal Chadha

Well, as can be inferred, TPW is a double-digit degrowth. Sorry, what was the next question? Percentage of TPW. So, we don't share that data in terms of the split. Okay. Got it. So, we see the lighting margin is still healthy, but although there is a decline sequentially, what is the reason for the same? And how should we see the margin going forward? And secondly, once you enter the switchgear business, the switchgear margin would be in line with lighting, or possibly it would be dilutive because the business is at an initial stage? So sequentially, the margin improved -- sorry, please contin

Sir, 2 questions. Now, with this brand restructuring that is getting implemented, where does the brand NEX stand now? Because earlier, there were a lot of hopes around that brand. Now, how should we think about NEX positioning? Question number one. Question number two, we have seen this year unusually high rainfall even in the month of October. And even in the small season generally, the summer product companies get in -- due to October heat, that also seems to be washed out. And again, that's called out by some of the paint companies or even, let's say, the ice cream, etc., also. So, how do y

Vishal Chadha

Yes. I'll take the second question first. You're absolutely right. There is usually a small second summer, which this time did not pan out. And that's why I said in the beginning that we see a muted number in October also. Coming to the first question, we had indicated some time back that NEX is now a sub-brand under the Bajaj brand name. It's no longer an independent brand as it was earlier. And with the two brand strategies that we have for Morphy as well as the Bajaj brand, NEX will be a subset of the Bajaj brand.

My first question. Sir, in your presentation, you've written that there is a single-digit value decline in domestic appliances. Could you call out which product category these would be in?

Sanjay Sachdeva

Coolers. Okay. Sir, because just below that, you've written that coolers have witnessed a double-digit value decline. So, I wasn't sure what the single digit would be in domestic appliances? Would that be geezers and water heaters or... So, it's coolers, which have declined double-digit. Water heater has grown; iron has grown. So, it's basically the -- when we say DAP, that includes coolers in. Got it. Okay. So, there is no product category basically with a single-digit value decline, as mentioned in the presentation? No. It's a combined. Got it, sir. And just wanted to know your sense, how do

Sir, can you please give us some color on your kitchen appliances category? As you know, in the presentation, it's mentioned that we have seen a double-digit value growth. So how have our three brands, Bajaj, Nirlep, and Morphy Richards, performed individually across core categories and channels? Also, if you could provide some color on the new products launched and regarding Nirlep, we had earlier discussed our plans to restructure the brand. Could you provide some color on that as well? Lastly, if you could quantify the contribution of kitchen appliances as a percentage of total ECD business

Vishal Chadha

There are a lot of questions over there. So I'll start with the ones I remember. So as far as the kitchen category is concerned, whether it is mixers or its induction, or kettles, etc., we have grown in all the subsegments of those. At a brand level, Nirlep has seen a decline, and Bajaj has seen growth. Okay. And regarding channels, could you quantify the pace of new products in the Bajaj brand? Sorry, I didn't understand the questions. Which channels do we have -- we have done well across all channels. Okay. And how has the trend of -- how have the mix of premium categories of premium product

Sir, one question. I do understand that we – currently, the inventory levels of fans are higher in the channel. But last time when we saw that star ratings were getting implemented in the December quarter, Bajaj, especially, was very aggressive in terms of inventory, pushing inventory into the channel, and probably we registered somewhere around 50% growth in the December quarter of fans as a category. How do you read the situation here, whether channel would be influenced to stock more to avoid -- to get the benefit of the pricing? Or how do you read the situation for current quarter? Yes. Th

Vishal Chadha

While we do anticipate pressures in terms of stocking up of the channel because this time is the second time, we are probably slightly better prepared in terms of navigating this change. So, I don't think it will be as much of a push into the channel as probably happened the last time. Right. And sir, at the portfolio level, as Bajaj as a group for consumer products, probably we have been taking initiatives to premiumize our positioning from channel point of view, from consumers' point of view, how successful we have been, if you can quantify numbers probably, let's say, for FY '25 versus FY '

Just a clarification. When you say channel inventory is high, is that for us? Is that for the entire industry?

Vishal Chadha

Well, I'm assuming it's for the industry because everybody has faced the same early onset of monsoon. And Achal, if you see the results also, I think everyone more or less has reported the same amount of growth or degrowth. So -- and what we find from the channel partners is that the inventory across is very high. And not only that, I mean, even the inventories of white goods are affecting the overall market, even for us. Right. Okay. And in terms of the -- even the channel inventory is so high, how do we look at this when you say you have announced price hike and you will not shy from taking

Sir, this AWE Plus Smart Ble LED lamp is compatible with Amazon Alexa and the Bajaj Smart app. And what is the broader strategy for creating connected home ecosystems? And is there any plan to integrate more appliances beyond Lighting? And how will you compete with larger tech and ecosystem players?

Rajesh Naik

So, as a strategy, this was the first step that we have taken in the Lighting because it is the obvious integration, which can be done with Bluetooth. But we are working to bring the complete ecosystem, which is across home appliances, whatever depends can be managed through the app that we are working on. And once that is ready as a single app, we will come back to the market.

Sir, I had 1 question. So, if you look at the last 4 or 5 years, the consumer products business has grown maybe at 4% or 5% CAGR. Now we understand that there have been challenges in the industry. But over the next 2 or 3 years, in your view, how does this accelerate going forward? Or it's going to remain a little bit muted in the next 2 years, if the industry challenges persist. So, just want your thoughts that as how are you looking at this -- your consumer products vertical as a whole over the next 3 or 4 years? Do you think double-digit growth is possible or will it be similar to what is g

Sanjay Sachdeva

So, we don't give forward statements, but all that we can say is that it largely depends on how the market growth rates are. And we intend to maintain our market share or grow our market share. So that will give you the idea of what kind of growth we should expect. But very difficult, as you could see this year, because of the season, the growth rates were very different from what we had predicted. So very difficult to say that. But you can add the two. Fair enough. And sir, on the margin side, again, if we look at the margins in the consumer business, they have also come off significantly. So

Yes, sir, regarding high channel inventory in fans, so this pertains to the TPW fan or the entire fan category?

Vishal Chadha

The highest channel inventory is in TPW. Ceiling fans are high, but not a significant matter of concern as TPW is. Okay. And regarding the VAVE norm, whether the higher cost will pass to the market in a phased manner or in one go? First, we will try to pass it up in a phased manner, depending on the situation and the competitive context. Okay, sir. Sir, last on lighting. Sir, what is the lighting B2B order book now? 210 crores. What was in this quarter last year? Last quarter. Sorry, currently it's INR 178 crores versus INR 210 crores last year. So INR 210 crores was last year. Just one more q

As mentioned in the previous answer, B2B Lighting revenue has decreased to INR 178 crores. Is this a calibrated approach because -- and are we considering increasing the share of B2C Lighting, given that it's more -- it gives better margins compared to B2B. And also, if you could give us some color on the product mix, which helped -- which helped us gain better EBIT margins this quarter?

Rajesh Naik

Just to start with, from consumer lighting to professional lighting, yes, the consumer lighting piece is much bigger, and we are working on -- that's why we said that our trade sales have improved high double digit in value as well as volume. We have a clear focus to grow that, which gives us the way to increase the market share. And also, we have changed the product mix. We are focusing on some focus categories, which give us better margins. So that is on the B2C side, which is the consumer lighting. On professional lighting, you must have seen that order intake has gone down a little bit; it

Thank you very much to all the people who have joined. It was a good discussion, and we are hoping that the future will be much stronger than what has happened this year. Thank you.

Management

Speaking time

Vishal Chadha

EC Prasad

Moderator

Achal Lohade

Sanjay Sachdeva

Balasubramanian

Rachna

Mahesh

Renu Baid

Natasha Jain

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Opening remarks

Dhruv Jain

Thank you. Hello, everyone. Welcome to the 2QFY26 Earnings Call of Bajaj Electricals Limited. From the management side today, we have with us Mr. Shekhar Bajaj, Chairman; Mr. Sanjay Sachdeva, MD and CEO; Mr. E.C. Prasad, CFO; Mr. Vishal Chadha, COO, Consumer Products; and Mr. Rajesh Naik, COO, Lighting Solutions. Thank you, and over to you, sir, for your opening remarks.

Shekhar Bajaj

Good evening, ladies and gentlemen. I'm Shekhar Bajaj here. Thank you for attending Bajaj Electricals 2Q earnings call. We hope you've had an opportunity to review our financial results and earnings presentation, which are available on the Stock Exchanges. At the outset, I would like to extend my heartfelt wishes for Diwali. Hope this new year brings joy and prosperity to you and your families. The government's announcement of comprehensive GST reforms featuring significant rate reductions across most product categories marked a major milestone in simplifying India's indirect tax regime. While these reforms are expected to stimulate consumption in the second half, their rollout caused short-term transitional challenges during the quarter. The anticipation of GST cut rates led to pricing uncertainties across trade channels, resulting in the temporary postponement of demand even though our category was not directly impacted. This was further compounded by the early onset of monsoons with

Sanjay Sachdeva

Thank you, Chairman. Good evening, ladies and gentlemen, and thank you for joining our investor call. My wishes for Diwali and the New Year. Hope this brings joy and prosperity to you and your families. As the Chairman explained, this quarter has been marked by considerable volatility impacting the demand pattern of our consumer products vertical, mainly due to the extended monsoon and the GST rate reform. The Lighting Solutions vertical has done exceptionally well. We are observing price stabilization in the LED segment, which has augmented revenue growth. Not only has it delivered revenue growth of 9.6%, but the EBIT is up by 46% from INR 15 crores to INR 22 crores on a year-to- year basis. Year-to-date margins in the business remain at 9.2%, which is very encouraging. Further, consumer lighting witnessed double-digit volume and value growth in general trade. Our strategy to increase our revenue contribution in focused categories like ceiling lights and outdoor lights is showing resu

Sanjay Sachdeva

Okay. Let me talk about a few things again. So, we had launched switchgears in August 2025 and are very happy with its progress. The initial response from the channel partners is encouraging, and it reinforces that we have a very strong brand. Lastly, professional lighting has also delivered good growth with high single-digit margins. We are confident this will continue over the next few quarters. In the case of the consumer products vertical, the first quarter of financial '26 had an early onset of monsoon, and you're aware of that, and this has impacted our sales of our summer products. Even in Q2, the high channel inventory has put pressure on primary sales, which is, our sales from us to our distributors and to our channel partners. Further, the GST rate reforms are sweeping and did not have any impact on our ECD business, but the uncertainty and anticipation of GST rate cuts led to pricing uncertainties across trade channels. This resulted in the temporary postponement of demand.

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