Bajaj Electricals (BJE IN) – Q2FY27 Result Update – Weak Fan Demand Weighs on Growth – HOLD
Published on 28 Oct 2026
Consumer Products (CP) revenue grew by 2.4% YoY, driven by double-digit growth in kitchen appliances, water heaters and steam irons, while fans declined by more than double digits, partly offsetting the growth. BLDC fans grew 56% YoY, contributing approximately 17% of the fan portfolio. Lighting Solutions revenue declined by 1.3% YoY, as double-digit growth in consumer lighting, supported by wires and switchgear, was offset by weakness in professional lighting. Lighting EBIT margin declined to 3.1% from 7.9% in Q2FY26, impacted by adverse product mix and operating deleverage. Management aims to absorb more than half of input cost inflation through productivity improvements, with pricing actions implemented in lighting and further hikes under evaluation in consumer products. Alternate channels grew 7.0% YoY, with double-digit growth in e-commerce and high double-digit growth in exports, while general trade declined 3% YoY. We estimate FY26-29E revenue/EBITDA CAGR of 5.9%/30.8%. We value the stock at 25x Sep’28 EPS and arrive at revised TP of INR281 (earlier INR302). We downward revise our FY28/29 earnings estimate by 8.4%/8.0% due to weak CP demand and decline in fan segment. Maintain ‘Hold’.
