1. Opening Hook
Orient Electric just reminded everyone that even in a “soft demand” quarter, fans still spin, heaters still sell, and margins still complain. While commodities decided to misbehave and labour laws showed up uninvited, management chose optimism, premiumisation, and MS Dhoni. Because obviously, when costs rise, you bring Dhoni.
Q3 delivered growth that looks decent on slides, slightly messy in footnotes, and very on-brand in storytelling. Revenue moved up, EBITDA behaved, and PBT needed an asterisk big enough to deserve its own slide.
If you stopped reading at “11% growth,” congrats—you sound like the market on a good day. But stick around, because the real story hides in BLDC fans, wires doubling, and margins doing yoga to stay flexible. Things get interesting once the spin slows down.
2. At a Glance
- Revenue up 11% – Management calls it “resilient”; markets call it “acceptable.”
- Gross margin down 190 bps – Commodities said hello, margins said ouch.
- EBITDA up 10.6% – Cost savings tried their best, and mostly succeeded.
- PBT up 19% (pre-exceptional) – Labour codes entered and spoiled the party.
- PAT down 4.4% YoY – Accounting reality check, festive season edition.
- Net cash ₹45 Cr – At least the balance sheet slept well.
3. Management’s Key Commentary
“We delivered 11% revenue growth despite multiple headwinds.”
(Translation: Demand wasn’t great, but neither was it terrible 😏)
“BLDC fans grew over 30% YoY with premium mix at ~30%.”
(Translation: Customers will pay more—if electricity bills scare them enough)
“Appliances delivered high double-digit growth led by heating.”
(Translation: Winters saved the quarter, summers ghosted us)
“Gross margins reflect temporary commodity pressures.”
(Translation: Please don’t ask when this ‘temporary’ phase ends)
“Spark Sanchay delivered ₹43 Cr cost savings YTD.”
(Translation: Finance team earned their bonuses)
“DTM model continues to stabilize across markets.”
(Translation: Distribution experiments are no longer breaking things)
“Exceptional item relates to new labour codes.”
(Translation: Policy risk—now officially P&L risk too 😐)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY | What It Really Says |
|---|---|---|---|
| Revenue | ₹906 Cr | +11% | Growth exists, but not explosive |
| Gross Margin | 29.8% | -190 bps | Commodities still bossing around |
| EBITDA | ₹68 Cr | +10.6% | Cost control > pricing power |
| EBITDA Margin | 7.5% | Flat | Stability, not improvement |
| PBT (Reported) | ₹35 Cr | -4.6% | One-time items doing real damage |
| PAT | ₹26 Cr | -4.4% | Shareholders felt the asterisk |
Margins held because costs were squeezed—not because pricing suddenly became sexy.
5. Analyst Questions
- Q: When do margins recover?
A: When commodities behave.
(Translation: Don’t hold your breath.) - Q: Is BLDC growth sustainable?
A: Yes, penetration is still low.
(Translation: This is the real long-term story.) - Q:
