Bajaj Electricals Limited submitted the transcript of its Q2FY27 Earnings Call to the BSE and NSE as a compliance filing under Regulation 30 of the SEBI Listing Regulations. The call was hosted by ICICI Securities Limited on October 28, 2026, at 4:30 PM IST.

Nature of Disclosure & Key Developments

The disclosure is a verbatim transcript of a post-earnings quarterly conference call discussing the company's unaudited financial results for the quarter and half-year ended September 30, 2026. A major corporate governance announcement was made by Chairman Shekhar Bajaj, who stated he will step down from his executive responsibility at the end of the calendar year (2026) as part of a planned leadership succession. Subject to approvals, he will continue as a Non-Executive Director and Chairman Emeritus. Sudarshan Sampathkumar, a current Independent Director, is slated to become the Non-Executive Independent Chairman from January 1, 2027. The Bajaj family will remain promoters and majority shareholders.

Financial Performance Overview (Q2 FY27 YoY)

The company reported modest top-line growth but significant bottom-line improvement:

  • Revenue: Grew 1.5% year-on-year (YoY).
  • Gross Margin: Stood at 31.9%, improving by 10 basis points (bps) YoY. On a half-year basis, gross margin improved 70 bps to 32.1% from 31.4%.
  • EBIT Margin: Improved by 140 bps YoY from 3.0% to 4.4%.
  • Profit Before Tax (PBT): More than doubled to INR 35 crores from INR 15 crores YoY.
  • Brand Investment: Increased to 3.8% of revenue, up 150 bps YoY. Management noted that adjusted for this incremental spending, the EBIT margin would have been 5.9% and PBT margin 4.5%.

Segment-Wise Performance

Consumer Products Segment:

  • Grew by 2.4% YoY.
  • Growth was led by strong double-digit performance in kitchen and domestic appliances, specifically in induction cookers, water heaters, and steam irons.
  • The fan category witnessed a double-digit decline, dragging down overall growth. However, the premium BLDC (Brushless DC) fan sub-segment grew phenomenally by 56% YoY and now constitutes nearly 17% of the fan portfolio.
  • The segment EBIT margin was 4.0%. Adjusted for higher brand investment, the like-to-like EBIT was 5.6% versus 2.8% last year.

Lighting Solutions Segment:

  • Declined by 1.3% YoY.
  • The contraction was primarily due to a near double-digit decline in the professional lighting business, attributed to losing certain project bids and being selective due to high inflation.
  • The consumer lighting business within this vertical grew double-digit, fueled largely by strong growth in wires and switchgears (switchgears grew 28%).
  • New categories like wires now contribute 20-25% to the Lighting Solutions vertical.
  • The segment delivered an EBIT margin of 3.1%.

Operational and Strategic Highlights

  • Channel & Sales: E-commerce sales grew in double digits. Channel health has improved materially, and the company stated there are no plans for inventory correction like in the previous year.
  • Capacity & Innovation: Management acknowledged being late in the BLDC fan segment versus competitors. Capacity for BLDC fans is being ramped up multifold, with new capacities expected to be operational in the next 3-6 months, which should accelerate growth in the fan category.
  • Pricing & Inflation: Commodity costs (metals, plastics) remained elevated. The company took a price hike in the lighting segment in October 2026 and is evaluating a price increase for Consumer Products. The company's philosophy is to absorb more than half of input cost inflation through productivity improvements and pass on less than half via pricing.
  • Growth Focus: The company is focusing on a few states for the expansion of new categories like wires. The long-term priority is the "quality of growth" through premiumization and innovation rather than excessive discounting.

Management Outlook & Guidance

Management did not provide specific quantitative guidance for FY28 but reiterated its ambition to grow revenue at a double-digit rate, ahead of the market. The goal is to achieve close to double-digit profitability in the future, though the timing (FY28 or later) depends on inflationary pressures and growth investment decisions. The Chairman expressed confidence that the company would surpass its historical peak EBITDA (referenced as ~INR 320 crores from FY21) in the next 2-3 years.