Bajaj Electricals Ltd Q2FY26 – From Morphy to Murky? Revenue Slips 1%, Profit Falls 23%, and CFO Waves Goodbye with a ₹10-Crore Smile
1. At a Glance
Bajaj Electricals — the name your grandparents associated with tube lights that flickered through every Indian monsoon — just dimmed a bit more this quarter. The ₹5,919 crore smallcap veteran reported a Q2FY26 revenue of ₹1,107 crore (down 1% QoQ) and a PAT of ₹9.86 crore (down 23.6% QoQ). OPM? A humble 5.16%, which is now smaller than the wattage of its LED bulbs. With an EPS of ₹0.85 this quarter, the annualized EPS clocks around ₹3.4, putting the P/E somewhere north of 64x — because why should gravity apply to valuations?
And just to spice it up, CFO E.C. Prasad decided to switch off his corporate switchboard — resigning effective January 2026. Market’s response? A 2.87% fall on results day, as the ₹513 stock price slipped further into the “from kitchen to correction” category.
Still, Bajaj Electricals isn’t just selling irons; it’s trying to iron out an identity crisis — balancing between fans, fryers, and lighting contracts, all while its peers (Voltas, Blue Star, Crompton) run circles around it. Let’s plug into this tangled wire mess and see what’s sparking (or not).
2. Introduction
Once the cool kid of Indian homes — lighting up bedrooms and heating water with patriotic pride — Bajaj Electricals has now become that old family fan that spins but doesn’t move much air. The brand is iconic, yes. But legacy doesn’t always translate to leadership.
The last few years have been a series of switches — new CEO (Sanjay Sachdeva), new strategic alliances (hello, SEAK tunnel lighting), new CAPEX (₹100–₹150 crore), and now a new CFO exit (bye, Prasad). Yet the numbers remain as unimpressed as an electrician asked to install a chandelier on Diwali night.
While peers like Blue Star and Voltas are expanding faster than Bajaj’s wiring diagram, this company seems caught between nostalgia and newness. The consumer product segment — fans, cookers, mixers, and that “Endure” mixer grinder you saw in Flipkart ads — contributes 80% of revenue. The lighting business adds 20%, but ironically, it’s this division that’s shining brighter lately.
You’d think a brand with Morphy Richards and Nirlep under its belt would be cooking profits. Instead, it’s cooking confusion — acquisition, divestment, and strategic reviews all happening simultaneously. If you think this sounds like a family WhatsApp group argument, you’re not wrong.
3. Business Model – WTF Do They Even Do?
Bajaj Electricals runs two main shows:
Consumer Products (80%) – Everything you plug into a 5-amp socket. Mixer grinders, irons, fans, coolers, water heaters, cookers, and that Morphy Richards hair straightener your cousin uses once a year. They’ve recently launched “Endure” mixer grinders and “Armor” series fans — because apparently fans now need armor.
Lighting Solutions (20%) – LED bulbs, tube lights, streetlights, and big projects like the Maha Kumbh Mela 2025 lighting and Wankhede Stadium illumination. Because if you can’t light up your profit, at least light up Sachin’s stadium.
They also make cookware under Nirlep, recently acquired Morphy Richards for ₹146 crore (finally owning what they’ve been licensing for decades), and export to 40+ countries — a fancy way of saying “we send bulbs abroad too.”
Manufacturing happens across Chakan, Nashik, and Aurangabad — all running at less than 60% capacity utilization. Their distribution network is the real muscle: 700+ distributors, 2 lakh retailers, and 600 service centers. Basically, Bajaj has more outlets than jokes about load-shedding.
So, what’s the problem? Low utilization, high competition, thin margins, and a fan market that’s cooling faster than your AC.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
1,107
1,118
1,065
-1.0%
+3.9%
EBITDA (₹ Cr)
57.13
51.61
32.61
+10.7%
+75.3%
PAT (₹ Cr)
9.86
12.90
0.91
-23.6%
+983%
EPS (₹)
0.85
1.12
0.08
-23.6%
+963%
Annualized EPS: ₹3.4 → P/E: 513 / 3.4 = ~151x (That’s more inflated than air in a Bajaj cooler.)
Commentary: Revenue is stuck in neutral, profit fell YoY, but hey — QoQ rebound looks dramatic because last quarter was near-zero. It’s like celebrating a student’s “massive” improvement from 2 marks to 20.
