India's Bajaj Electricals swings to loss on weak consumer product sales, labour code charge

Bajaj Electricals

09/02/2026 09:52

Feb 9 (Reuters) - Indian appliance maker Bajaj Electricals BJEL.NS swung to a quarterly loss on Monday, hit by a one-off charge linked to the country's new labour codes and a consumer products sales dip.

The Bajaj Group firm posted a consolidated loss of 341 million rupees ($3.76 million) for the third quarter ended December 31, compared to a 333.6 million-rupee profit a year earlier.

The consumer products division, which sells fans and home appliances and makes up most of the company's revenue, logged a revenue fall of 25% from a year earlier, pushing overall revenue from operations down 19% at 10.51 billion rupees in the reported quarter.

Labour code-related charges stood at 288.9 million rupees.

For further earnings highlights, click (Full Story).

KEY CONTEXT

India's new labour codes — the biggest overhaul of workers' laws in decades — have dragged profits of major corporate firms across sectors, from Godrej Consumer Products GOCP.NS and Mahindra Holidays and Resorts India MAHH.NS to Infosys INFY.NS.

Appliance makers in India, from AC maker Voltas to Crompton Greaves, are also battling higher metal prices, prompting some of them to raise prices to protect their bottom lines.

Cooling-product sales at Bajaj Electricals' consumer products division have been lacklustre for the past few quarters, after an extended monsoon hit first-quarter demand and left distributors cautious about restocking.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Bajaj Electricals Ltd
BJEL.NS
25.21
11.55
9.39
52.49
Buy
9
0.70
0.73
Blue Star Ltd
BLUS.NS
54.74
35.16
15.99
32.46
Hold
23
1.00
0.48
Voltas Ltd
VOLT.NS
49.09
37.86
17.67
54.94
Hold
37
1.01
0.49
Havells India Ltd
HVEL.NS
44.32
29.36
15.52
24.30
Buy
25
0.82
0.74

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER TO DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 90.7080 Indian rupees

BJEL Q3 vs peers https://tmsnrt.rs/4c1ZjlF

(Reporting by Urvi Dugar in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)

((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))