Bajaj Electricals (BJE IN) – Q4FY26 Result Update – Continued weakness in CP segment – Downgrade to ‘Accumulate’
Published on 20 May 2026
Consumer Products (CP) revenue declined by 6.9% YoY to INR9.3bn, impacted by de-growth in fans mainly due to weak BLDC performance and domestic appliances due to high channel inventory in coolers, partially offset by strong double-digit growth in kitchen appliances. Lighting business continued to witness healthy momentum with 15.6% YoY growth, led by consumer and professional lighting, supported by higher mix of wires and switchgears along with steady order execution. Lighting EBIT margin improved driven by volume growth and fixed cost control, while CP margins remained under pressure due to lower scale. Management aims to drive recovery in the CP segment through improvement across all products and normalization of cooler inventory, while sustaining growth momentum in the lighting segment driven by wires. We estimate FY26-28E revenue/EBITDA CAGR of 12.1%/60.9%. We value the stock at 24x Mar’28 EPS and arrive at revised TP of Rs384 (earlier Rs449). We downward revise our FY27/28 earnings estimate by 18.4%/10.8% with contraction margin due to increase in commodity prices. Downgrade to ‘Accumulate’.
