Bajaj Electrical Q1 FY27 Results (NSE: BAJAJELEC)
Signal: Margin expansion
The read
The key inflection is the EBITDA margin recovery to 9.5% from 3.0% in both the year-ago and preceding quarter, supported by a 190bps gross-margin expansion and lower fixed-cost lines, but the ₹4,838 lakh PAT is not fully operational because ₹878 lakh came from a property sale and other income was 39% of PBT; revenue growth remains modest at 2.3% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,089.36 Cr | +2.3% | -12.1% |
| EBIT | ₹72.62 Cr | N/A | |
| Net profit | ₹48.38 Cr | +5,216.5% | |
| EPS | ₹4.19 | +5,137.5% | |
| EBIT margin | 9.5% |
P&L walk
Revenue grew 2.3% YoY to ₹108,936 lakh, gross margin expanded 190bps to 33.9%, and EBITDA margin rose to 9.5% from 3.0% as employee costs, depreciation and finance costs declined YoY; PAT of ₹4,838 lakh was additionally supported by ₹878 lakh exceptional income and ₹2,562 lakh other income.
Segments
Consumer Products drove the turnaround, moving from a ₹1,360 lakh loss to a ₹3,239 lakh profit YoY on 1.7% revenue growth, while Lighting Solutions revenue grew faster at 4.4% but its result fell 34.0% to ₹1,794 lakh.
Key positives
- EBITDA margin expanded 650bps YoY to 9.5% as employee cost declined 1.9%, depreciation declined 17.8% and finance cost declined 10.5%, indicating meaningful cost support to the margin recovery.
- Gross margin expanded 190bps YoY to 33.9%, with the disclosed material and traded-goods cost basket falling to 66.1% of revenue from 68.0%.
- Consumer Products turned profitable at ₹3,239 lakh from a ₹1,360 lakh loss YoY, despite revenue growth of only 1.7%.
Key concerns
- Revenue from operations grew only 2.3% YoY to ₹108,936 lakh and declined 12.1% QoQ, leaving the recovery dependent on margin rather than demand acceleration.
- Lighting Solutions segment result declined 34.0% YoY to ₹1,794 lakh despite 4.4% revenue growth, indicating weaker segment profitability.
- Raw materials consumed increased 22.6% YoY to ₹15,128 lakh and rose to 13.9% of revenue from 11.6%; the filing does not disclose the reason.
Earnings quality: includes non-operating other income
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