Bajaj Electricals — the brand that powers your mom’s mixer grinder, lights up your colony’s streetlamps, and occasionally sponsors cricket stadium LEDs — just reported a quarterly profit of ₹6.8 crore. That’s a 75% collapse in profits YoY while still trading at a P/E of 70. In plain English: investors are paying five-star hotel rates for vada pav service.
2. Introduction
Once upon a time, Bajaj meant scooters, mixers, and the feeling of “Hamara Bajaj.” Fast forward to 2025, and Bajaj Electricals is stuck somewhere between nostalgia and reality. The nostalgia sells fans, cookers, and Morphy Richards microwaves; the reality is a shrinking profit pool, high valuations, and a boardroom now scratching heads about what to do with Nirlep cookware.
Imagine a company that reaches 2 lakh outlets across India, has distribution deeper than a pani puri stall network, and still manages to deliver negative sales growth over five years. Even its brand extensions (Morphy Richards, Nirlep, Nex) sound like fancy cousins you meet only during weddings but never see the rest of the year.
For investors, Bajaj Electricals has been like that relative who promises you “returns” if you fund his small business, but five years later only shows you a pile of EMI receipts. Sales growth flat, profits volatile, return on equity at a measly 7%. Yet, the market keeps rewarding it with a P/E north of 70 — because apparently nostalgia is worth a premium.
3. Business Model – WTF Do They Even Do?
Consumer Products (80% of revenue): Mixers, juicers, fans, water heaters, air coolers, irons — basically everything your rented PG room already has three duplicate versions of. Flagship products like Bajaj Endure mixer grinder and Armor Series fans try to look “premium,” but margins remain wafer-thin.
Lighting Solutions (20%): LEDs, tube lights, stadium lights, street projects. Their brag-worthy projects include Maha Kumbh lighting and Wankhede Stadium floodlights. Translation: from temple to Tendulkar, Bajaj will light your path.
Brand Tie-ups: Morphy Richards (UK license extended till 2040) and Nirlep Cookware. Sounds global, but revenue contribution is like putting oregano on roadside pizza — looks fancy, but still the same base.
Distribution Muscle: 700+ distributors, 2 lakh outlets, 600 service centers. Basically, Bajaj’s sales guys can reach villages faster than government electricity.
Question for readers: If a company sells in 2 lakh outlets but can’t grow sales in five years, is the problem demand or management?
4. Financials Overview
Q1 FY26 Snapshot
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue (₹Cr)
1,065
1,155
1,265
-7.8%
-15.8%
EBITDA (₹Cr)
33
75
93
-56.0%
-64.5%
PAT (₹Cr)
6.8
28.1
59.0
-75.7%
-88.5%
EPS (₹)
0.08
2.44
5.12
-96.7%
-98.4%
Commentary: This is not just a bad quarter; this is a “lights-off” quarter. Sales dipped, margins collapsed, and profit nearly vanished. Annualised EPS (₹0.32) implies a P/E “not meaningful” — yet stock still trades at 70x trailing earnings.
5. Valuation Discussion – Fair Value Range
P/E Method: EPS (FY25) = ₹9.2. Industry P/E ~40. Fair Range = 30–40x EPS = ₹276 – ₹368.
EV/EBITDA Method: FY25 EBITDA = ₹265 Cr. EV = ₹6,849 Cr. EV/EBITDA = 20. Industry ~15–18. Fair Range =
