Bajaj Electricals saw its shares climb 16% after the company reported strong first-quarter results, with profit surging and operating margin doubling compared to the year-ago period.

The company's Managing Director and CEO, Sanjay Sachdeva, said the Consumer Products business returned to growth during the quarter, posting a positive 3.9% EBIT margin. Sachdeva expressed confidence in the company's ability to deliver sustainable and profitable growth going forward.

Bajaj Electricals, a subsidiary of the Bajaj Group, is one of India's well-known consumer durables and lighting companies. The company operates through two primary segments: Consumer Products and Illumination (EPC). The Consumer Products segment includes appliances, fans, lighting, and cookware. The company competes in a crowded market alongside players such as Havells India, Crompton Greaves Consumer Electricals, and V-Guard Industries, where brand strength, distribution reach, and cost management are critical differentiators.

The significant share price reaction reflects investor optimism around the company's improved profitability metrics and the turnaround in its Consumer Products division, which had faced challenges in previous quarters. The margin improvement is particularly notable given that Indian consumer durable makers have grappled with fluctuating raw material costs and intense competition, which have pressured profitability across the sector. A return to positive EBIT in Consumer Products suggests the company's ongoing turnaround initiatives — including portfolio rationalization and distribution restructuring — are gaining traction.

Source: CNBC-TV18