Bajaj Electricals Ltd. is broadening its presence in the electrical products market with an entry into the cables business, marking its third category expansion within a year.
The move comes as the company’s Lighting Solutions division continues to deliver steady growth, even as its Consumer Products segment faces demand challenges.
Bajaj Electricals has a market capitalization of around ₹4,030 crore. Its shares were trading at ₹349.25, against a 52-week range of ₹301 to ₹711.
Third category launch in a year
The cables business follows two recent launches:
- Switchgear — August 2025
- Wires — February 2026
- Cables — June 2026
Together, these additions are creating a broader electrical infrastructure portfolio.
The company said operations in the cables segment will commence shortly.
It has not disclosed the investment required for the business.
Wires business showed encouraging response
Management said during the Q4 FY26 earnings call that the recently launched wires business had received a positive response.
Demand trends have been encouraging across key regions.
The company appears to be leveraging the overlap between wires and cables.
Distribution advantages
Dealers already selling:
- Wires
- Switchgear products
can also distribute cables, helping Bajaj Electricals expand faster while limiting additional channel-building costs.
Lighting Solutions remains the strongest segment
The expansion is being driven by the performance of the Lighting Solutions business.
Q4 FY26 performance
- Revenue growth: 16% YoY
- EBIT margin: 8.5%
FY26 performance
- Revenue growth: 9.5%
- EBIT margin: 8.5%, the highest for the segment
Management has indicated that margin gains from the lighting business will be reinvested to support future growth initiatives.
That means newer categories such as cables are expected to focus initially on scale rather than profitability.
Consumer Products business faced headwinds
While Lighting Solutions performed well, the Consumer Products division remained under pressure during FY26.
Factors affecting the segment included:
- Delayed summer season
- Weak demand for fans and coolers
- Inventory correction in certain categories
Management also acknowledged that the company lost market share in fans because of its relatively weaker presence in the fast-growing BLDC fan category.
Signs of recovery emerging
Despite the challenges, some indicators improved during the March quarter.
Positive developments
- Channel inventory has largely normalized.
- Kitchen appliances recorded nearly 30% growth in Q4.
- Management expects gradual demand recovery.
The company plans to strengthen its position in BLDC fans over the next 12 months while increasing spending on:
- Product innovation
- Brand building
If the wires and cables businesses continue to gain traction, they could help diversify earnings and reduce dependence on seasonal consumer categories.
FY26 financial performance
Q4 FY26
| Particulars | Q4 FY26 |
|---|---|
| Revenue | ₹1,239.5 crore |
| Revenue growth | -2.1% YoY |
| Net profit | Loss of ₹67.5 crore |
The quarterly loss was affected by weak summer demand and exceptional items.
FY26
| Particulars | FY26 |
|---|---|
| Revenue | ₹4,462 crore |
| Revenue growth | -7.6% YoY |
| Net profit | Loss of ₹90.9 crore |
| FY25 net profit | ₹133.4 crore |
Despite weaker earnings, the company maintained strong liquidity.
Balance sheet highlights
- Cash balance: ₹934 crore
- Negative working capital position
TL;DR
Bajaj Electricals has entered the cables business after launching switchgear and wires over the past year. The expansion is being driven by strong growth in the Lighting Solutions segment, while the company works to revive its Consumer Products business after a difficult FY26.
AI summary
- Bajaj Electricals has entered the cables segment.
- Switchgear and wires were launched earlier.
- Lighting Solutions posted record 8.5% EBIT margins in FY26.
- Consumer Products business remained under pressure.
- The company ended FY26 with ₹934 crore in cash.
