Bajaj Electrical Q1 FY27 Results (NSE: BAJAJELEC)
Signal: Margin expansion
The read
Headline profit surged due to a one-off property sale (₹8.78 Cr) and high other income (₹25.62 Cr), but underlying operating profit (PBT before other income and exceptional) improved from near break-even to ~₹32 Cr, reflected in operating leverage (fixed cost decline) and gross margin expansion. Consumer products segment revival is encouraging; lighting remains under pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,089.36 Cr | 2.84% | -12.1% |
| EBIT | ₹72.62 Cr | 173.9% | |
| Net profit | ₹48.37 Cr | 5215% | |
| EPS | ₹4.19 | 5137.5% | |
| EBIT margin | 9.5% |
P&L walk
Revenue grew modestly 2.8% YoY, but operating leverage (fixed costs declined 10-18%) drove EBITDA margin expansion of 349bps to 9.5%; gross margin also improved 160bps to 32.3% (input cost signal). PAT surged to ₹48.37 Cr, but was significantly boosted by other income (₹25.62 Cr, 39% of PBT) and exceptional profit on property sale (₹8.78 Cr, 13% of PBT).
Segments
Consumer Products turned from a loss of ₹13.60 Cr to a profit of ₹32.39 Cr (segment PBIT), driving the overall turnaround; Lighting Solutions profit declined from ₹27.19 Cr to ₹17.94 Cr, partially offsetting.
Key positives
- Operating leverage: EBITDA grew +62% YoY vs revenue +2.8%, employee costs, depreciation and finance costs all declined
- EBITDA margin expanded 349bps YoY to 9.5%, highest in 8 quarters
- Consumer Products segment turned profitable (PBIT ₹32.39 Cr vs loss ₹13.60 Cr YoY)
- Revenue grew modestly after four consecutive quarters of YoY decline
Key concerns
- Other income (₹25.62 Cr) contributed 39% of PBT – underlying operating profit is much lower
- Exceptional profit on property sale (₹8.78 Cr) is one-off and not recurring
- Lighting Solutions segment profit declined 34% YoY
- QoQ revenue declined 12.1%, indicating seasonal or demand softness
Earnings quality: includes non-operating other income
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