Synopsis: With its Consumer Products vertical still finding its footing, a BSE-listed consumer electricals major has announced entry into the Cables business under its Lighting Solutions segment, a category built on record segment margins and early traction from a wires launch that has drawn strong market response.
A leading consumer electricals company moved back into investor focus on Friday after announcing its entry into the cables category under its Lighting Solutions segment. The company cited rising demand in the cables industry as the driver, and said operations would commence shortly. The move adds a third new product line to a segment that has been the one consistent bright spot in an otherwise difficult year for the company.
With a market capitalization of approximately Rs. 4,030 crore, the shares of Bajaj Electricals were trading at Rs. 349.25 per share, with a 52-week range of Rs. 711 to Rs. 301. The stock is trading at a PE of 126x.
Building on Wires, Now Targeting Cables
The cable’s entry is the third category addition within Lighting Solutions in under twelve months. Switchgear came first in August 2025, wires followed in February 2026, and cables now complete what is beginning to look like a deliberate electrical infrastructure suite. The investment quantum has not been disclosed and will be assessed based on market scale and business requirements.
The wire launch has provided the template. Management noted on the Q4 FY26 earnings call that the foray had drawn an encouraging market response, with demand trends positive across key geographies. That early commercial traction appears to have provided the confidence to move quickly into cables, a category that shares significant distribution and channel overlap with wires. Dealers who already carry the company’s wires and switchgear products are natural partners for a cable push, reducing the cost and time of market entry.
Lighting Solutions: The Platform That Makes This Possible
The Lighting Solutions vertical has earned the credibility to carry this expansion. In Q4 FY26, the segment posted 16 percent revenue growth year-on-year with an EBIT margin of 8.5 percent. For the full year, revenue expanded 9.5 percent, and the annual EBIT margin reached 8.5 percent, a record for the vertical. Management has been clear that gross margin gains in lighting will be reinvested to accelerate growth, which means cables will need to earn their place through volume rather than immediate margin contribution. That is a reasonable ask given how quickly wires have moved.
Can Cables Offset Consumer Products Pain?
The key question for investors is whether the newly launched wires business can help offset the challenges in consumer products. The segment remained under pressure in FY26 due to a delayed summer season, weaker demand for fans and coolers, and inventory corrections across certain categories.
Management also acknowledged losing some market share in fans because of its relatively weaker presence in the fast-growing BLDC segment. However, channel inventory has largely normalized, kitchen appliances delivered nearly 30 percent growth in Q4, and the company expects a gradual recovery going forward.
Management plans to close the BLDC competitiveness gap within the next 12 months while increasing investments in innovation and brand-building. If the wires business sustains its early momentum, it could provide an additional growth lever and help reduce the company’s dependence on the cyclical performance of summer-driven consumer categories.
Financials Overview
In Q4 FY26, revenue declined 2.1 percent YoY to Rs. 1,239.5 crore, while the company reported a net loss of Rs. 67.5 crore, impacted by weak summer demand and exceptional items. For FY26, revenue fell 7.6 percent to Rs. 4,462 crore, and the company posted a net loss of Rs. 90.9 crore compared to a profit of Rs. 133.4 crore in FY25. Despite the weak earnings performance, the company generated strong operating cash flows, ending FY26 with Rs. 934 crore in cash and a negative working-capital position.
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