Bajaj Electricals Share Price Jumps 13%: Will the Morphy Richards Deal Pay Off?

The Bajaj Electricals share price saw its biggest intraday rally since May, surging by as much as 13.3% on Wednesday, September 24, 2025, after the company announced a landmark deal to acquire the brand rights for Morphy Richards in India and neighbouring markets. The move, valued at ₹146 crore, is seen by investors as a major strategic step to solidify the company's position in the premium home appliance segment, transforming a long-standing licensing arrangement into permanent ownership.

Table of Contents

1. From Licensee to Owner: The Details of the Deal
2. Why the Market Cheered the Move
3. What This Means for Investors
4. Frequently Asked Questions (FAQs)

From Licensee to Owner: The Details of the Deal

Bajaj Electricals' board has approved a proposal to acquire the Morphy Richards brand and all related intellectual property rights from its current owner, Glen Electric Limited, which is part of Ireland's Glen Dimplex Group.

Here are the key aspects of the acquisition:

• Transaction Value: The deal is valued at ₹146 crore, exclusive of taxes and duties.

• Territories Covered: The acquisition grants Bajaj Electricals perpetual ownership of the brand rights in India, Nepal, Bhutan, Bangladesh, the Maldives, and Sri Lanka.

• A Long-Standing Partnership: This move isn't the start of a new relationship but the culmination of a successful one. Bajaj Electricals has been the exclusive licensee for marketing and distributing Morphy Richards products in India for over two decades, since 2002. The company had just extended its licensing agreement for another 15 years in 2022.

The transaction is now subject to the finalisation of definitive agreements and the receipt of necessary regulatory approvals.

Why the Market Cheered the Move

The sharp rally in the Bajaj Electricals share price, which had been underperforming and was on a four-day losing streak, reflects strong investor optimism about the long-term benefits of this acquisition.

• Securing a Premium Brand: Morphy Richards is a well-established and respected name in the premium appliance market. By acquiring the brand outright, Bajaj Electricals eliminates the uncertainty and cost of future license renewals and royalty payments, securing a key asset for its premium portfolio.

• Full Control and Strategic Freedom: As the owner, Bajaj will have complete control over brand strategy, product innovation, and marketing across South Asia. This allows for greater agility and a more integrated approach to growing the brand's presence in a competitive market.

• Margin Improvement: By eliminating royalty fees paid to Glen Dimplex, Bajaj Electricals is expected to see an improvement in its profit margins for the Morphy Richards product line, which includes popular items like coffee makers, air fryers, and garment steamers.

• A Counter to Weak Demand: The move is particularly significant given the company's recent financial performance. Bajaj Electricals reported a sharp 96.8% slump in its first-quarter profit due to weak consumer demand and a one-time expense. The acquisition is seen as a proactive, long-term strategic play to strengthen its business and drive future growth, moving beyond short-term market headwinds.

There’s a helpful YouTube video by Yadnya Investment Academy that examines the competitive positioning of Bajaj Electricals against Crompton Greaves, worth watching to see how the Morphy Richards deal fits into the bigger picture.

What This Means for Investors

For investors, the acquisition of Morphy Richards is a clear signal of management's focus on long-term value creation.

• Short-Term Boost: The immediate 13.3% rally in the Bajaj Electricals share price has provided a significant short-term boost for shareholders.

• Long-Term Value Accretion: The deal is expected to be value-accretive in the long run by securing a key revenue stream, improving margins, and strengthening the company's competitive position in the lucrative premium home appliance segment.

While the company still faces challenges related to overall consumer demand, this strategic acquisition provides a powerful new engine for growth. It transforms a successful two-decade-long partnership into a permanent asset, giving investors a compelling reason to be bullish on the future of Bajaj Electricals.

Check the latest Bajaj Electricals share price, updated charts, and valuation ratios to evaluate its stock performance.

Frequently Asked Questions (FAQs)

Q1: What did Bajaj Electricals announce regarding Morphy Richards?
A1: Bajaj Electricals announced that it is acquiring the brand rights for Morphy Richards in India and several neighbouring countries for ₹146 crore. This turns their long-standing licensing agreement into full ownership.

Q2: How did the Bajaj Electricals share price react to this news?
A2: The stock reacted very positively, surging as much as 13.3% in a single day, marking its biggest intraday rally since May.

Q3: Why is this acquisition significant for Bajaj Electricals?
A3: It is significant because it gives Bajaj Electricals full control over a well-established premium brand, eliminates royalty payments (which should improve margins), and secures a key part of its premium product portfolio permanently.

Q4: Hasn't Bajaj Electricals been selling Morphy Richards products for a long time?
A4: Yes, Bajaj Electricals has been the exclusive licensee for Morphy Richards in India for over 20 years, since 2002. This deal changes that relationship from a temporary license to permanent ownership.

Q5: What is the long-term outlook for Bajaj Electricals after this deal?
A5: The acquisition is seen as a strong long-term strategic move. It is expected to be value-accretive by improving profitability and strengthening the company's position in the premium appliance market, helping to counter recent weaknesses in consumer demand.