Bajaj Consumer

Bajaj Consumer Care reported consolidated sales of INR 259.5 crores for Q1 FY26, marking a 7.4% year-on-year growth. Stand-alone sales stood at INR 244.5 crores, growing by 3.2% YoY. Excluding Vishal Personal Care, consolidated revenue grew by 3.7%. The company achieved a stand-alone EBITDA of INR 42.8 crores, representing an 11.6% growth, with PAT at INR 39 crores (stand-alone) and INR 37.9 crores (consolidated).

The stand-alone gross margin improved significantly to 56.6%, an increase of 140 basis points year-on-year and 240 basis points sequentially. This expansion was primarily driven by an improved product and SKU mix, coupled with price increases in the oil portfolio. Consequently, the stand-alone EBITDA margin expanded by 130 basis points YoY and 340 basis points sequentially to 17.5%, with consolidated EBITDA margin improving by 30 basis points YoY.

The core brand, Almond Drop Hair Oil (ADHO), showed a 4% growth, successfully arresting its volume decline after several quarters. This growth was broad-based, including small packs and sachets, indicating a broader consumption revival. The company has significantly increased its advertising focus on ADHO, with an extensive TV campaign (over 3,000 GRP) and dedicated digital channel efforts, reaching over 4 crore consumers.

Bajaj Consumer Care completed the acquisition of the remaining 51% stake in Vishal Personal Care (VPC) in Q1 FY26, making it a fully owned subsidiary. VPC reported a top line of INR 15.5 crores in Q1 FY26, growing nearly 10% YoY on a like-to-like basis. The integration process has begun, with management estimating it to be a 4-5 quarter exercise, focusing on leveraging VPC's strong South distribution for BCCL brands and expanding VPC's presence nationally.

Organized trade, encompassing modern trade and e-commerce, demonstrated strong double-digit growth year-on-year, now contributing close to 29% of sales. Quick commerce and beauty channels led performance within organized trade. Conversely, rural general trade remained sluggish, which management attributed to internal distribution changes under the 'Aarohan' program, currently being rectified. The Aarohan program has been extended across core markets, adding over 25,000 new outlets.

The international business experienced a weak quarter, with revenue declining 20% year-on-year. This was primarily due to external headwinds^🌐 such as tariff uncertainty and a slowdown in rest of world markets. While direct representation markets like Nepal and Bangladesh showed resilient double-digit growth, distributor/export markets (MEA and rest of world) declined sharply due to weak demand and distributor transitions.

Management views the hair oil category as a $2 billion market with high penetration (92-93%) and stable usage habits in India. While the category grows at a moderate rate, consumer preferences are evolving towards sensorials. The company aims to premiumize ADHO and explore extensions within the brand, alongside scaling up its herbal natural product portfolio from Banjara's. New product introductions will follow a frugal, phased approach, focusing on specific channels and markets for optimal ROI.