Bajaj Electricals (BJE IN) – Q1FY27 Result Update – CP remains weak; margin recovery underway – ACCUMULATE
Published on 07 Aug 2026
Consumer Products (CP) revenue grew by 1.7% YoY, impacted by subdued demand and weakness in fans, while Lighting Solutions revenue grew 4.4%, supported by growth in professional lighting and healthy consumer lighting performance. CP EBIT margin improved to 3.8%, with management expecting further improvement through VAVE initiatives, while Lighting EBIT margin expanded to 6.7%, aided by a shift towards premium products from low-margin commodity products. Professional lighting margins were impacted by higher costs on projects with predetermined rates, with management targeting double-digit margins once legacy projects are completed. E-commerce contributed ~15.0% of revenue and grew double digit, while alternate channels also witnessed strong growth. Net working capital days improved despite a slight increase in inventory, while overall cash flow remained negative due to tax payments related to Morphy Richards, TDS and GST. We estimate FY26-28E revenue/EBITDA CAGR of 9.9%/57.7%. We value the stock at 25x Mar’28 EPS and arrive at revised TP of INR403 (earlier Rs382). We upward revise our FY27/28 earnings estimate by 4.5%/0.6%. Maintain ‘Accumulate’.
