ICICI Securities
Target: ₹200
CMP: ₹161.15
Q4-FY26 is shaping up to be a decent quarter for , aided by stable demand across fans, lighting, switchgear and wires.
We note that it has taken calibrated price hikes of about 4–5 per cent in fans in Q4FY26 and we expect further price hikes in coming quarters to offset inflationary pressure; it continues to focus on premiumisation, especially in BLDC fans, to support margins; lighting segment could outgrow peers, with consumer lighting and premiumisation tracking well, though sourcing and pricing may remain volatile; Air cooler sales may be impacted by unseasonal rains in late Mar’26 in North India; and Switchgear and wires are expected to grow in high double digits, albeit on a low base; however, procurement-linked volatility may impact the supply chain.
The focus remains on increasing the share of BLDC fans, which should likely support realisations and margins going ahead, in our view
While near-term margins may see some pressure due to the partial passthrough of costs, we believe a gradual recovery is likely led by the improvement in product mix and operating leverage.
We model Orient to report revenue and PAT CAGRs of 11.7 per cent and 25.4 per cent, respectively, over FY25–28E. We expect RoE to remain above 13 per cent over FY26-28EWe maintain Buy with a DCF-based revised target price of ₹200 (earlier ₹210).
Key risks: Steep increase in competitive pressures and commodity inflation.