1. At a Glance
Orient Electric is the Birla family’s friendly neighborhood appliance shop turned listed company. Q1 FY26 wasn’t a spark, but hey, the fan’s still running. Margins holding at 6%, PAT at ₹18 Cr, and the share price quietly humming at ₹223.
- Revenue: ₹769 Cr
- Net Profit: ₹18 Cr
- OPM: 6%
- Stock P/E: 56.8x (who let this into premium club?)
2. Introduction with Hook
Imagine buying a fan that costs ₹5,000 but spins like one from Dadar station. That’s Orient Electric in the stock market—premium branding, ordinary thrust. A CK Birla group company that gives off legacy vibes but sometimes feels like it’s stuck in the 90s.
- 5-year CAGR Revenue: 8%
- 3-year PAT growth: -13%
- ROE: 12.5%
- Still valued like a growth startup from Bengaluru
3. Business Model (WTF Do They Even Do?)
They make fans, LEDs, switches, geysers, and appliances. Basically, if it plugs in and isn’t a phone, they’ve probably branded it.
- Fans: Hero product
- Lighting: LED play that’s constantly dimming
- Home Appliances: Mix of coolers, water heaters, irons (yes, really)
- Switchgear: For the nerds in the construction business
It’s a durables business that wants to be called “lifestyle.”
4. Financials Overview
Let’s fan out the numbers:
| Metric | FY25 | FY24 | YoY |
|---|---|---|---|
| Revenue | ₹3,094 Cr | ₹2,812 Cr | +10% |
| EBITDA | ₹204 Cr | ₹145 Cr | +41% |
| PAT | ₹83 Cr | ₹75 Cr | +11% |
| OPM | 7% | 5% | Moving in the right direction |
Commentary:
Good margin bump. But sales growth slower than a cooler in Ladakh. EBITDA grew faster than top-line — that’s a rare win.
5. Valuation
Let’s try not to faint at the fan price.
- EPS TTM: ₹4.05
- P/E: 56.8x
- Book Value: ₹32.5 → P/B = 6.83x
Fair Value Range:
- At 25x EPS = ₹101
- At 35x EPS = ₹142
- FV Range: ₹100–₹140
At ₹223, you’re paying Blue Star prices for Crompton-like performance.
6. What’s Cooking – News, Triggers, Drama
- GST penalties worth ₹48 Cr dropped like a surprise inverter bill
- CEO/CFO/Head Digital – Resigned (a corporate HR musical chairs)
- New MD appointed – cue applause
- Concall buzz: Focus on channel expansion, product refresh, and exports (again, as always)
But let’s be honest—the most exciting news here is “lighting segment EBITDA crossed ₹1”
7. Balance Sheet
| Metric | FY25 | FY24 |
|---|---|---|
| Net Worth | ₹694 Cr | ₹639 Cr |
| Debt | ₹86 Cr | ₹112 Cr |
| Total Assets | ₹1,555 Cr | ₹1,451 Cr |
Highlights:
- D/E ratio comfortably low
- Capex spiked: CWIP went from ₹5 Cr to ₹225 Cr in FY24
- Still very much asset-light compared to peers
But… if ₹225 Cr capex doesn’t yield shiny returns soon, the fans might be the only thing spinning.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | ₹88 Cr | ₹-29 Cr | ₹-72 Cr | ₹-13 Cr |
| FY24 | ₹118 Cr | ₹-171 Cr | ₹-46 Cr | ₹-98 Cr |
Insights:
- CFO has been positive – thumbs up
- CFI is negative because of CWIP bomb
- CFF negative = dividend and debt reduction (good boy behavior)
Still, net cash flow = “Meh”
9. Ratios – Sexy or Stressy?
| Metric | FY25 | FY24 |
|---|---|---|
| ROE | 12.5% | 12.0% |
| ROCE | 17.9% | 14% |
| OPM | 6.75% | 5.15% |
| D/E | 0.12 | 0.18 |
| Working Capital Days | 28 | 19 |
Verdict:
ROCE decent, but for the P/E it’s riding, ROE needs to do a triple somersault.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹2,529 Cr | ₹151 Cr | ₹76 Cr |
| FY24 | ₹2,812 Cr | ₹145 Cr | ₹75 Cr |
| FY25 | ₹3,094 Cr | ₹204 Cr | ₹83 Cr |
Commentary:
FY24 was a dip, FY25 a minor bounce. FY26 Q1 hints at more of the same. Stable, not stellar.
11. Peer Comparison
| Company | Revenue | PAT | P/E | ROE |
|---|---|---|---|---|
| Blue Star | ₹11,967 Cr | ₹585 Cr | 61x | 20.6% |
| Voltas | ₹15,412 Cr | ₹823 Cr | 52.9x | 13.3% |
| Crompton | ₹7,863 Cr | ₹556 Cr | 38x | 17.4% |
| Orient Electric | ₹3,108 Cr | ₹86 Cr | 56.8x | 12.5% |
Conclusion:
Same P/E range. One-third revenue. One-fifth profit. Cool branding. Lukewarm fundamentals.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun ’25 |
|---|---|
| Promoters | 38.3% |
| FIIs | 6.88% |
| DIIs | 28.11% |
| Public | 26.65% |
No drama here. Promoter holding stable, FIIs increased slightly. DIIs consistent. Public not panicking—yet.
No buybacks. No new products causing frenzy. Just your reliable PSU-style fan company in Birla clothing.
13. EduInvesting Verdict™
Orient Electric is the iPhone 8 of the appliance world. Reliable, decent, but priced like the iPhone 14. The stock’s valuation needs performance that’s not just “quarterly good” but “yearly spectacular.”
Until then?
A fair pit stop if you’re into boring, dividend-paying consumer plays. Just don’t expect Tesla-style torque.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Orient Electric, CK Birla, Q1 FY26, Consumer Durables, EduInvesting Premium
