BAJAJELECNSEQ4FY26May 26, 2026

Bajaj Electricals Limited

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58turns

8analyst exchanges

7executives

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Management on call

Shekhar Bajaj

CHAIRMAN – BAJAJ ELECTRICALS LIMITED

Sanjay Sachdeva

MANAGING DIRECTOR AND

Vishal Chadha

CHIEF OPERATING OFFICER -

Rajesh Naik

CHIEF OPERATING OFFICER -

Ashween Anand

CHIEF FINANCIAL OFFICER - BAJAJ ELECTRICALS LIMITED

Suketu Shah

FINANCE CONTROLLER – BAJAJ ELECTRICALS LIMITED

Manan Goyal

ICICI SECURITIES

Key numbers — 19 extracted

28%

sruptive, the Lighting Solutions vertical still delivered a strong performance. EBIT increased by 28% on a year-to-year basis. Further, the vertical ended the year with highest-ever annual EBIT margi

8.5%

year-to-year basis. Further, the vertical ended the year with highest-ever annual EBIT margin of 8.5%. We are confident of continuing this trajectory going forward. Though, the Consumer Products vert

INR 3

ain a dividend rate same as last year and accordingly approved -- recommended a final dividend of INR 3 a share, that's 150% of face value of INR 2 each on equity shares for the financial year ending 31

150%

me as last year and accordingly approved -- recommended a final dividend of INR 3 a share, that's 150% of face value of INR 2 each on equity shares for the financial year ending 31st March 2026. Bef

INR 2

cordingly approved -- recommended a final dividend of INR 3 a share, that's 150% of face value of INR 2 each on equity shares for the financial year ending 31st March 2026. Before I hand over to Sanja

16%

cal has consistently delivered revenue growth and margin in the last financial year. We delivered 16% revenue growth in quarter 4 and delivered EBIT margin of 8.7%. This has been a successful year

8.7%

he last financial year. We delivered 16% revenue growth in quarter 4 and delivered EBIT margin of 8.7%. This has been a successful year for Lighting Solutions vertical with their annual turnover have

9.5%

een a successful year for Lighting Solutions vertical with their annual turnover have expanded by 9.5% and annual EBIT margin close to 8.5%. We are confident of carrying this momentum into next year.

INR 934 crore

company. We continue to generate positive cash flow from operations and are ending the year with INR 934 crores of cash. We are operating at negative working capital. This strong liquidity position provides u

30%

itchen appliances, as was mentioned in the opening remarks, we have delivered a very good, almost 30% growth over last year's same quarter. We have had modest growth in water heaters and irons. Coole

EBIT margins in the consumer business, what we have done -- see initially we used to do of what, 6%, 7% earlier, which has come down to around 3%, 3.5% in '24/'25 and last year, I think it was ne

margins in the consumer business, what we have done -- see initially we used to do of what, 6%, 7% earlier, which has come down to around 3%, 3.5% in '24/'25 and last year, I think it was negative

Guidance — 20 items

Manan Goyal

opening

“On behalf of ICICI Securities, we welcome you all to Q4 and FY26 Results Conference Call of Bajaj Electricals Limited.”

Shekhar Bajaj

opening

“We are confident of continuing this trajectory going forward.”

Shekhar Bajaj

opening

“However, we expect the vertical to bounce back in the next financial year.”

Sanjay Sachdeva

opening

“We are confident this business will grow in future and will emerge as one of the strong growth drivers for the next few quarters.”

Sanjay Sachdeva

opening

“We are confident of carrying this momentum into next year.”

Sanjay Sachdeva

opening

“This journey so far is progressing well, and we are confident that coming quarters and the year will be much better.”

Sanjay Sachdeva

opening

“We are, however, confident of turning this around as we go forward next quarter.”

Sanjay Sachdeva

opening

“Overall, we remain confident on delivering steady and profitable growth going forward.”

Shivam Patel

“I just wanted to know our capex plan for FY27 and FY28?”

Shivam Patel

“So I just wanted to know your capex plan for FY27 and '28?”

Risks & concerns — 5 flagged

At one end, while the summer cooling products had an impact of delayed onset of summer -- onset of the summer season, coupled with geopolitical uncertainty, supply chain disruptions and input cost pressures during the last 3 weeks of the quarter, the other end, the Consumer Products, the kitchen appliances did well.

— Sanjay Sachdeva

Coming on to the Consumer Products business, this business has seen significant pressure in recent quarters now.

— Arun Agarwal

So is it fair to assume that we would at least reach closer towards the FY24/'25 margins this year or is that to change more difficult?

— Arun Agarwal

Difficult to say exact margin, and I tell you why because there is another factor which is affecting the cost of our products is the war-related inflation.

— Sanjay Sachdeva

In that case, we will not be able to deliver -- it's difficult at this stage to say whether we'll be able to deliver '24/'25 margin.

— Sanjay Sachdeva

Q&A — 8 exchanges

I just wanted to know our capex plan for FY27 and FY28? That's my first question. And the second question on the revenue growth, in Fans and Appliances in Consumer Products, while on Lighting side, if you can point out wires, switchgears and otherproducts performed individually. And how is wires and switchgears margins have performed in this context? So these are the two questions.

Sanjay Sachdeva

Is the question clear? Can you repeat the questions? Questions are not clear. Shivam, your voice is a bit muffled. That's why we are not able to hear your questions correctly. Is it clear now? Yes, yes. Yes. So I just wanted to know your capex plan for FY27 and '28? So that's my first question. And second question is on the Consumer Products. How has Fans and Appliances have performed in this quarter individually, while on the Lighting side, wires, switchgears and other products have performed individually? So you mean to say the financial year, '26, '27. capex on '26, '27, right? No, capex fo

Sir, one is on the Lighting Solutions business. We clocked good margins this quarter, this year, in fact. You said that the momentum would likely continue in the Lighting Solutions business going forward in FY27 as well. So could you just help us out, is there a possibility of further margin expansion? Or this is the range that would likely continue over in say, next 1 to 2 years in Lighting Solutions?

Rajesh Naik

Thanks for the question. As we have been talking about, we are driving product mix and premium products into the Lighting category which has helped us to bring this additional margin. The same would be there to continue expanding the margins, but we'll not be able to tell you the figures where we want to reach from here. So just to sort of add to that is, look, the margins are good in Lighting and there are a lot of opportunities in the Lighting business. So while our gross margin movement will be positive, part of that, we are planning to use to accelerate growth in Lighting. So at the EBIT l

So what is the quantum of price increase we have taken in Q4? Any follow-up price increase we have taken in Q1 FY27?

Vishal Chadha

We have -- Consumer Products, our price increases have ranged from anywhere from 3% to 10% in quarter 4, and we have already taken a price increase in the same range in April. So -- and in May, also, we have announced price increases where we are seeing further pressures because of war and commodity inflation. But despite the, say, three price increases, we have not yet covered the commodity inflation completely. Is that correct? And further price increases will be required? See, we have covered the commodity inflation to the extent possible. But as Sanjay mentioned that going forward, we will

Sir, my first question is regarding how are we doing in terms of channel inventory? Like is it largely normalized? Or is it at the elevated level? Second is, how are we doing in terms -- how are we seeing the demand in terms of the summer season going ahead? Because we have seen like IMD rating has already been mentioned that there has been a good summer season going ahead. So how are we seeing the traction in terms of primary channels as well as secondary channels? Yes, these are my two questions.

Vishal Chadha

So in Consumer Products, we have corrected the channel inventory to a large extent. But there are still some categories like summer products, coolers specifically, where they are still at a slightly elevated level. We are watching the season progress. Quarter 4 was a delayed summer. In this quarter so far, there has been a mixed bag of summer as well as unseasonal rains. In some parts of the country. We are seeing good demand coming in because the summer is good there, but in some parts of the country, it is not as good. So it's a mixed bag. In the early part, North did not see summer, but now

Sir, in the opening remarks, somewhere in the comments, we highlighted that we'll continue to enhance innovation and other brand building exercises. Can you throw some light because just the backdrop is, if we look at probably some last 2 to 3 years, when Mr. Anuj was also taking care of the business, there were significant investments made behind the product development and other initiatives. And we probably going by the financials, we were not able to see any positive benefits flowing in, so going forward, what are these investments for? And how should it translate into growth numbers and ma

Sanjay Sachdeva

So thank you for raising this. So there's a lot of learning we have in the last -- what has happened in the last few years. And we want to incorporate that as we are building our innovations for the next 2 to 3 years, which means we are bringing innovations which we plan at the right price point with the right margins. And we are also making sure not only that the right price point -- the right price point with the right margin, but also we're bringing innovations, we have adequate margin, which is necessary to support those innovations in the market. So in the end the idea is that with these

Two questions. First, if you could throw some light in terms of your market share in fans, how it has moved, say, in the last 2 to 3 quarters? And the second question is the reason for the sharp jump in your OCS?

Vishal Chadha

So on the fans market share, we have lost a bit of market share. And primarily, the reason behind that is that we are still not as good on our BLDC performance as we would like it to be. The industry's contribution is higher versus ours. So we are working hard towards making sure that, that part of the fans portfolio gets better. I think second question was on the operating cash flow, Suketu this side. So we have generated around INR 400 crores of operating cash flow for the quarter, and that's primarily driven because of the working capital improvement, half of it coming from inventories and

Sir, I just wanted to know on working capital side, will it be maintained at what FY26 levels or can you see an improvement?

Suketu Shah

Suketu here again. So we have been operating at negative working capital for the past 2 years, and we -- the expectation is to continue on those same lines for the next year as well, and we endeavor to achieve that as well.

Thank you very much all the participants for participating in this investors call. And sorry, once again, that we could not complete in the earlier period. Clearly, all of us are working very hard. Last year was a very bad year for us for various reasons, which has been explained. Current year, we are hoping it will be a much better year. You'll be all much happier compared to what has happened last year. So with all that, I wish you all the best, and thank you.

Management

Speaking time

Sanjay Sachdeva

Moderator

Shivam Patel

Vishal Chadha

Arun Agarwal

Manoj Gori

Suketu Shah

Manan Goyal

Shekhar Bajaj

Rajesh Naik

Opening remarks

Manan Goyal

Thank you. On behalf of ICICI Securities, we welcome you all to Q4 and FY26 Results Conference Call of Bajaj Electricals Limited. Today, we have with us senior management represented by Mr. Shekhar Bajaj, Chairman; Mr. Sanjay Sachdeva, MD and CEO, Mr. Vishal Chadha, COO - Consumer Products; Mr. Rajesh Naik, COO - Lighting Solutions; Mrs. Ashween Anand, CFO; Mr. Suketu Shah, Finance Controller. Now I hand over the call to the management for their initial comments on the quarterly and annual performance. Then we will open the floor for Q&A session. Thank you, and over to you, sir.

Shekhar Bajaj

Thank you. Good evening, ladies and gentlemen. I'm Shekar Bajaj here. Thank you for attending our Q4 earnings call. We hope you had the opportunity to review our financial results and earnings presentation, which are available on the stock exchanges. In the quarter, marked by a milder start to the summer season, geopolitical uncertainties, supply chain disruptions and input cost pressures, we have delivered a modest performance. In the last quarter, we highlighted that we have embarked on a journey of cultural and structural change in the way we engage with the channel and to move to a more balanced approach between demand-led sell-through and volume-led push. We are progressing well in this journey. While these macroeconomic factors were demand - disruptive, the Lighting Solutions vertical still delivered a strong performance. EBIT increased by 28% on a year-to-year basis. Further, the vertical ended the year with highest-ever annual EBIT margin of 8.5%. We are confident of continuing

Sanjay Sachdeva

Thank you, Chairman, sir. Good evening, ladies and gentlemen, and thank you for joining our investor call. First of all, sincere apologies for everyone -- to everyone for canceling the investor call last week. It was because of the circumstances out of our control, more to do with the technical reasons. Before we start, I would like to welcome Ashween Anand, who is our new CFO into the company. With her rich and diverse experience, I'm extremely confident that she will add immense value to our company. I would also like to thank Suketu Shah, who was our acting CFO, for his contribution during this transition phase. As Chairman said, we have delivered modest performance for this quarter. Let me start with Lighting Solutions. Like we mentioned in the past, portfolio expansion remains one of our top priorities. As part of this strategy, we entered wires category in this quarter. The foray into wires portfolio has witnessed a robust market response with some encouraging demand trends acros

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