Bajaj Electricals shares hit Rs 407.50 Thursday, its sharpest intraday jump since Feb 2021, after a strong quarterly profit turnaround.

Here’s what drove the rally. Net profit for the June quarter came in at Rs 48 crore, up sharply from just Rs 1 crore in the same period last year.

Revenue grew a modest 2.3% to Rs 1,089 crore. The real story, though, was margins. EBITDA more than doubled to Rs 77 crore from Rs 33 crore, pushing the EBITDA margin up to 7% from just 3.1% a year earlier.

Both of the company’s main businesses played a part. The Consumer Products division, which makes up the bulk of revenue, swung from a loss of Rs 14 crore to a profit of Rs 32 crore, with sales up 1.7%.

The Lighting Solutions business grew revenue 4.4% to Rs 269 crore, though its profit dipped slightly to Rs 18 crore from Rs 27 crore.

Chairman Shekhar Bajaj said the company navigated a tough environment marked by rising input costs and uneven summer demand, crediting tighter execution and cost control for the improvement.

CEO Sanjay Sachdeva added that the Consumer Products business is now back to positive margins and the company feels confident about sustaining profitable growth ahead.

Separately, the board approved Krishnan Sundaram’s appointment as Chief Growth and New Business Officer starting August 11, and cleared a proposal to expand the employee stock option pool, pending shareholder approval.

The company also reported cash and surplus investments of Rs 884 crore at quarter end.

Bajaj Electricals shares closed at Rs 382.50 on the NSE on Thursday, up 9.88% for the day, though the stock remains down close to 20% for the year so far.

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