Orient Electric Ltd

Orient Electric Limited reported a 25.2% year-on-year revenue growth to INR879 crores in Q2 FY27, driven by strong performance across lighting, wires, switches, and switchgears. The company noted persistent commodity inflation, particularly in copper and aluminum, which pressured gross margins to 29%. Despite this, EBITDA grew 49.7% year-on-year to INR57 crores, with EBITDA margins expanding by 106 basis points to 6.5%, supported by cost optimization initiatives like Project Sanchay. For H1 FY27, revenue reached INR1,829 crores, with EBITDA growing 46.9% year-on-year. The company emphasized its focus on premiumization, innovation, and expanding distribution, including direct-to-market (DTM) models in states like Madhya Pradesh and Chhattisgarh. Management highlighted the success of new product launches, with 30% of fan revenue coming from new products, and noted that BLDC fans grew 26% year-on-year. The company also discussed ongoing efforts to manage working capital, currently at 34 days, and expressed confidence in long-term margin improvement through mix optimization and cost control. Price hikes of 3-6% were implemented across categories to offset input cost pressures, though full absorption of inflation remains a challenge. The company guided toward double-digit EBITDA margins in the long term, supported by operational efficiencies and strategic initiatives.

The document highlights strong revenue growth, EBITDA expansion, and strategic initiatives like premiumization and DTM, indicating a positive outlook.