According to Prabhudas Lilladher's research report dated May 20, 2026, the brokerage has downgraded Bajaj Electricals to 'Accumulate' with a revised target price of ₹384, down from the earlier target of ₹449. The recommendation comes as the company navigates mixed performance across its business segments.
As reported by Prabhudas Lilladher, the Consumer Products (CP) revenue declined by 6.9% YoY to ₹9.3 billion, primarily impacted by degrowth in fans due to weak BLDC performance and domestic appliances due to high channel inventory in coolers. However, this was partially offset by strong double-digit growth in kitchen appliances. The lighting business continued to witness healthy momentum with 15.6% YoY growth, led by consumer and professional lighting, supported by higher mix of wires and switchgears along with steady order execution.
According to the research report, Lighting EBIT margin improved driven by volume growth and fixed cost control, while CP margins remained under pressure due to lower scale. Management aims to drive recovery in the CP segment through improvement across all products and normalization of cooler inventory, while sustaining growth momentum in the lighting segment driven by wires.
As reported by Prabhudas Lilladher, the brokerage estimates FY26-28E revenue/EBITDA CAGR of 12.1%/60.9%. The valuation is based on 24x Mar'28 EPS, arriving at the revised target price of ₹384. The firm has downward revised FY27/28 earnings estimate by 18.4%/10.8% due to contraction margin caused by increase in commodity prices.
