On consumer products, despite double-digit growth in appliances and Morphy Richards, overall growth was only 2%; did fans remain very weak? How do you see demand, pricing, and margin going forward?

Fans saw a decline due to external factors like gas shortages and PCBs. We kept pace with commodity inflation on pricing. Going forward, margins will improve with continued VAVE activities and premiumization, especially increasing BLDC contribution. Gas issues are resolved, and we are now securing PCBs on longer cycles.

How long will it take for ECD EBIT margins to normalise to 9-10%?

We intend to go to 10% margin. Margins will stabilise at 6-7% over the next two years, as the first set of turnaround gains are quick, but after that we will invest behind brands. Beyond two years, we will build further towards 10%. A timeline of 4-5 years depends on many factors.

Can you share market share trends and how rural markets are performing?

Overall share trend is mixed: stable in most categories, growing in iron and mixer grinders, but losing share in fans. We have corrective actions to claw back fan share in 2-3 quarters. We don't have a separate share report for rural, but given our large rural presence, rural share should be intact.

What was the operating cash flow in Q1 and working capital position?

Overall cash flow was negative due to one-time tax compliances (TDS and GST on Morphy acquisition). Excluding that, it was healthy. Working capital days are around 50-60, with inventories slightly up due to seasonal build and locking in good inventory. Debtors have improved.

Bajaj Electrical Q1 FY27 Earnings Call — Analysis (NSE: BAJAJELEC)

Bajaj Electricals delivers sharp EBIT margin expansion to 6.6% as Consumer Products turns EBIT-positive after sustained losses.

12 Aug 2026 · Analysis by Alpha Inflection

Result quality: strong — Margin expansion. Management sentiment: optimistic.

The take

Q1FY27 Total Revenue ₹1,089.36 Cr ( +2.3% YoY ) . New guidance — FY27 consolidated revenue growth 8-10% . New story: Consumer Products turnaround and margin recovery .

Results

Revenue ₹1,089.36 Cr +2.3% YoY; EBIT margin 6.6% (+410 bps YoY); Consumer Products EBIT margin turned positive at 3.9% (vs -1.7%).

Financial highlights

Bajaj Electrical Q1 FY27 reported figures
Metric	Value	Change	Basis
Total Revenue	₹1,089.36 Cr	+2.3%	yoy · Q1FY27
EBIT Margin	6.6%	+410 bps	yoy · Q1FY27
Consumer Products EBIT Margin	3.9%	+560 bps	yoy · Q1FY27 · from -1.7%
Lighting Solutions Revenue Growth	4.4%		yoy · Q1FY27
Gross Margin Expansion (Company)	130 bps		yoy · Q1FY27
Consumer Products Gross Margin Expansion	220 bps		yoy · Q1FY27

Guidance

Top-line growth target of 8-10% YoY, with Consumer Products EBIT margin expected to stabilise at 6-7% over next two years.

What management committed to

[Consumer Products] EBIT margin will stabilise between 6% and 7% over the next two years. — 6-7%, FY28
[Consumer Products] EBIT margin will reach 10% over the longer term (after the next two years). — 10%, beyond next two years (3-5 years)
[Overall lighting solutions] margin will return to double digits once legacy professional lighting contracts are exited, which is expected in 1-2 quarters. — double-digit, Q3FY27
[Bajaj Electricals] will claw back the market share loss in fans over the next two to three quarters. — Q4FY27
Consolidated top-line growth will be between 8% and 10% YoY (non-binding internal target). — 8-10%, FY27
No major price increases will be required for the rest of FY27 to meet [Bajaj Electricals'] margin requirements, though this is subject to commodity price volatility. — Q4FY27

Key themes

Margin-led recovery and channel realignment

How the narrative shifted

Consumer Products turnaround and margin recovery: Management positions the return to positive EBIT and premiumization as proof that restructuring is working and the business is on a sustainable recovery path.
Premiumization and BLDC shift in fans/appliances: Premium mix and BLDC fan adoption are key margin levers; the company is under-indexed vs industry but growing faster, aiming for rightful share.
Channel realignment and direct distribution: The move to direct dealers in South/West complements the distributor network, while e-commerce/quick commerce growth expands consumer reach efficiently.
Lighting margin drag from legacy contracts: Low-margin legacy professional lighting contracts signed pre-commodity spike are compressing overall lighting margins; exit expected in 1-2 quarters, after which double-digit margins should return.
Commodity inflation and cost pass-through: Raw material inflation of 6-12% across categories managed via selective price hikes, value engineering, and savings, with no major price actions expected for the rest of the year barring volatility.
Adjacent category expansion (wires, cables, solar): Management hints at long-term diversification into wires (already progressing), cables (seriously looking) and solar, but details are premature; a new CGO will drive this.

Operational commentary

Consumer Products returned to growth (+1.7% YoY) after multiple quarters of decline; non-summer appliances and Morphy Richards delivered double-digit growth.
E-commerce channel grew double-digits, exports nearly doubled; e-commerce ~15% of sales, quick commerce ~8-10% of total e-commerce.
Premiumization progressing well: BLDC fan contribution increasing, but still under-indexed vs industry (30-35% BLDC); premium portfolio mix improving.
Distribution expanded with direct dealers added in South and West alongside existing distributor network; stock correction largely completed, channel inventory healthier.
Lighting Solutions revenue grew 4.4% on a strong base; consumer lighting up double-digits, but professional lighting margin temporarily dragged by legacy low-margin contracts.
New categories: wires progressing better than expected; cables and solar under serious evaluation for future expansion.
Working capital days around 50-60; operating cash flow negative due to one-time tax payments on Morphy Richards acquisition, otherwise healthy.

Analyst Q&A

Q. On consumer products, despite double-digit growth in appliances and Morphy Richards, overall growth was only 2%; did fans remain very weak? How do you see demand, pricing, and margin going forward?
Fans saw a decline due to external factors like gas shortages and PCBs. We kept pace with commodity inflation on pricing. Going forward, margins will improve with continued VAVE activities and premiumization, especially increasing BLDC contribution. Gas issues are resolved, and we are now securing PCBs on longer cycles.
Q. How long will it take for ECD EBIT margins to normalise to 9-10%?
We intend to go to 10% margin. Margins will stabilise at 6-7% over the next two years, as the first set of turnaround gains are quick, but after that we will invest behind brands. Beyond two years, we will build further towards 10%. A timeline of 4-5 years depends on many factors.
Q. Can you share market share trends and how rural markets are performing?
Overall share trend is mixed: stable in most categories, growing in iron and mixer grinders, but losing share in fans. We have corrective actions to claw back fan share in 2-3 quarters. We don't have a separate share report for rural, but given our large rural presence, rural share should be intact.
Q. What was the operating cash flow in Q1 and working capital position?
Overall cash flow was negative due to one-time tax compliances (TDS and GST on Morphy acquisition). Excluding that, it was healthy. Working capital days are around 50-60, with inventories slightly up due to seasonal build and locking in good inventory. Debtors have improved.

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