Bajaj group stock in focus after foraying into wire manufacturing business

Synopsis: The stock surged up to 11% after announcing entry into the wires segment under lighting solutions. Key positives include ~10% segment margins, a 28–30% building wires market share, 9.6% lighting growth, a ₹30–40 crore order win, and improving operating margin to 5.16% sequentially.

The shares of the electrical equipment manufacturer gained up to 11 percent in today’s trading session after the company announced its entry into the wires business under its Lighting Solutions segment.

With a market capitalization of Rs 5,059.78 crore, the shares of Bajaj Electricals Ltd were trading at Rs 437.35 per share, increasing around 4 percent as compared to the previous closing price of Rs 422.50 apiece.

Foray into a new business segment

The shares of Bajaj Electricals Limited have seen positive movement after announcing its entry into the wires business under its Lighting Solutions segment to tap the rising industry demand. The company plans to launch products shortly and will evaluate investments based on market response and operational needs, while keeping stock exchanges informed of further material developments.

Additionally, margins in Bajaj Electricals’ Lighting Solutions segment are currently around 10%, broadly matching peer levels of 10–12% in the cables and wires space. The wires segment is relatively less competitive than cables and offers better export margin potential. Building wires form a significant 28–30% share of the overall cables and wires market, providing steady demand visibility.

The lighting business delivered a strong Q2 performance, with 9.6% revenue growth and EBIT margin at 7.9%, aided by price stabilisation in LEDs and healthy consumer lighting demand. Margin volatility was mix-driven due to B2B and B2C shifts, while a  Rs 30–40 crore order win helped revive B2B order momentum.

The company reported a muted financial performance, with revenue slipping marginally by 1 percent to  Rs 1,107.14 crore in Q2FY26. Profitability remained under pressure, as net profit declined 24 percent year on year to  Rs 9.86 crore, reflecting higher costs, weaker margins, or subdued demand during the quarter.

Operating performance remained weak, with an operating profit margin at 5.16% in Q2FY26, improving from a sharp low of 3.06% in the previous quarter but still below 6.78% reported a year ago. The subdued margin trend highlights ongoing cost pressures and limited operating leverage, despite some sequential recovery during the quarter.

Bajaj Electricals is a leading Indian consumer electricals company with a strong presence across lighting solutions, appliances, and electrical infrastructure. Known for trusted brands and wide distribution, the company serves both consumer and institutional segments, focusing on innovation, efficiency, and steady expansion in domestic and export markets.

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