Costs outpaced revenue, cutting Bajaj Electricals’ operating margin
Consolidated revenue rose +3.12% QoQ, but lower other income and faster expense growth cut net profit by -46.05%.
Filed 28 Oct 2026, 16:15 IST · after market close · Bajaj Electricals Ltd (BAJAJELEC)
Key takeaways
- Consolidated revenue rose +3.12% QoQ, but expenses grew +4.33%, narrowing operating margin by 1.10 percentage points to 6.02%.
- Net profit fell -46.05% QoQ to Rs 26.10 cr as other income dropped -61.28% and contributed 37.79% of pre-tax profit.
- Bajaj Electricals' 6.02% operating margin was 7.00 percentage points below the 13.02% median for 84 Consumer Discretionary peers.
Price around the results
Revenue growth did not cover the cost increase
Bajaj Electricals reported consolidated revenue growth of +3.12% QoQ, but expenses increased faster at +4.33%. That mismatch reduced operating profit by -12.73% and narrowed operating margin by 1.10 percentage points to 6.02%.
Lower other income made the profit decline sharper
Other income fell -61.28% QoQ, leaving it at 37.79% of pre-tax profit and making reported profit more dependent on non-operating income. Pre-tax profit fell -46.32%, while the tax rate eased by 0.37 percentage points to 25.96%; that tax benefit was not enough to offset the decline in pre-tax profit. Interest expense also declined -2.29%.
Margin trails the reported peer median
The 6.02% operating margin was 7.00 percentage points below the 13.02% median among 84 Consumer Discretionary companies that had reported the same quarter. Sequentially, this was a further decline from the 7.12% margin in Q1FY27, while EPS fell -46.06% to Rs 2.26.
Results were filed after market close
The consolidated results were filed on 28 Oct 2026 at 16:15 IST, after market close. The stock's post-results response is therefore not yet part of this assessment.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,123 cr | ₹1,089 cr | +3.12% |
| Other income | ₹13 cr | ₹34 cr | -61.28% |
| Expenses | ₹1,056 cr | ₹1,012 cr | +4.33% |
| Operating profit | ₹68 cr | ₹78 cr | -12.73% |
| Operating margin (%) | 6.02% | 7.12% | — |
| Interest | ₹15 cr | ₹16 cr | -2.29% |
| Depreciation | ₹30 cr | ₹31 cr | -0.56% |
| Profit before tax | ₹35 cr | ₹66 cr | -46.32% |
| Tax | ₹9 cr | ₹17 cr | -47.08% |
| Net profit | ₹26 cr | ₹48 cr | -46.05% |
| EPS (₹) | ₹2.26 | ₹4.19 | -46.06% |
Operating margin of 6.02% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What to watch
- Whether expenses continue to grow faster than revenue after the +4.33% versus +3.12% QoQ gap.
- Whether operating margin improves from 6.02% after falling 1.10 percentage points sequentially.
- Whether other income's contribution remains near 37.79% of pre-tax profit.