Bajaj Electricals shares slipped over 3% in Friday’s trade after Morgan Stanley reiterated its ‘Underweight’ rating on the stock with a target price of ₹481, citing weak first-quarter results for FY26 and continued operational headwinds. As of 9:55 AM, the shares were trading 2.90% lower at Rs 597.10.
In its note, Morgan Stanley pointed to broad underperformance across both revenue and profitability metrics in Q1FY26. The company reported an 8% year-on-year drop in consolidated revenue. EBITDA declined sharply by 56%, while adjusted profit after tax (PAT) plummeted by 70% compared to the same period last year.
Notably, the adjusted PAT was 78% below Morgan Stanley’s estimates and 69% lower than the broader market consensus. This significant miss highlights the mounting pressure on Bajaj Electricals’ operations, especially in its consumer segment.
The consumer products division—traditionally a strong revenue driver—saw revenue fall by 11%, missing the brokerage’s estimate of 7% growth. EBIT margins for the segment turned negative at -1.7%, a stark contrast to the expected positive margin of 3.6%.
Meanwhile, the lighting solutions segment offered some relief, posting a 3% rise in revenue against an estimate of 12%. However, EBIT margin came in at 10.6%, slightly above the expected 9%, helping limit the downside.
Additionally, the company disclosed an exceptional loss of ₹6.7 crore in the quarter, primarily due to an ex-gratia payout for employees at its Nashik manufacturing unit.
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