Bajaj Consumer Care Limited — Q3 FY26 earnings call

Call held 21 Jan 2026

Management summary

Bajaj Consumer Care reported a strong Q3 FY26, with significant revenue growth and margin expansion driven by strategic actions in pricing, distribution, and brand focus. ADHO and Banjara performed exceptionally well, while the international business faced challenges. The company is committed to sustaining higher growth, improving margins, and expanding direct distribution, with further clarity on its broader portfolio strategy expected in the coming quarters.

Highlights

  • Standalone revenue grew 27% Y-o-Y to INR 287 crores, demonstrating strong overall growth.

  • Consolidated revenue increased 32.7% Y-o-Y to INR 306 crores, indicating robust performance across the business.

  • Standalone EBITDA margin expanded significantly by 740 basis points Y-o-Y to 20.4%, driven by strategic pricing and mix improvement.

  • ADHO (Almond Drop Hair Oil) achieved very strong value growth with double-digit volume growth, supported by a 37% increase in ASP spends.

  • The acquired Banjara brand (under Vishal Personal Care) registered a strong 15% Y-o-Y growth, contributing positively to the portfolio.

Concerns

  • International business declined mid-single digit Y-o-Y and has been weak for the last couple of quarters due to operational and partner-related issues.

  • Rural business, despite showing revival, remains relatively weaker compared to urban growth, requiring further focus.

  • A conscious pricing correction in Bajaj Coconut led to a temporary volume-led impact, though management believes this impact is now settled.

Key financials

  1. Revenue (Standalone) ₹287 Cr +27%YoY
  2. Revenue (Consolidated) ₹306 Cr +32.7%YoY
  3. Gross Margin (Standalone) 59.8% +8%YoY
  4. EBITDA (Standalone) ₹58.4 Cr +99%YoY
  5. EBITDA Margin (Standalone) 20.4% +7.4%YoY
  6. EBITDA (Consolidated) Growth — +109%YoY
  7. EBITDA Margin (Consolidated) 18.6% +6%YoY
  8. PAT (Standalone) ₹47.6 Cr
  9. PAT Margin (Standalone) 16.6%
  10. PAT (Consolidated) ₹46.4 Cr
  11. PAT Margin (Consolidated) 15.1%
  12. ADHO ASP Spend Growth — +37%YoY
  13. Overall Advertising Spend Increase — +1%YoY

What they filed

Q1 FY27: revenue up 25.3%, net profit up 86.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue234 234 250 273 265 +13%306 +31%327 +31%342 +25%
EBITDA33 26 32 41 48 +45%56 +115%77 +141%83 +102%
Net profit32 25 31 38 42 +31%46 +84%64 +106%71 +87%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Almond Drop Hair Oil (ADHO)
    — Volume Growth— Value Growth
  • Bajaj Coconut
    — Growth
  • Banjara
    — Growth
  • International Business
    — Growth

Capital allocation

high confidence
  • M&A Banjara (under Vishal Personal Care) Acquisition · Integrated

    Brings Banjara brand into portfolio with significant scale-up opportunity; integration progressing as per internal timelines.

    Banjara registered a strong 15% year-on-year growth for this quarter; operating margins remained stable in mid-teens.

    Banjara, which was the brand acquired by us under Vishal Personal Care, also registered a very strong 15% year-on-year growth for this quarter. Operating margins of this business also remained stable in mid-teens. Our integration plans are on line with internal time lines. And we have already integrated two states within South where we witnessed a very strong positive response to the integrated portfolio of Banjara's and Bajaj Personal Care being carried into the market. The integration for the rest of the southern states has already been initiated and would be complete over the next quarter.

Guidance & targets

Distribution

  • Direct coverage expansion Distribution · every year for next 4-5 years · High confidence 10%
    See, Naitik, our stated point of view has been that we want to expand around 10% coverage every year and do it year-on-year for the next 4 years to 5 years. I think that's what our committed strategy is.

    — Naveen Pandey

Growth

  • Overall growth rate Growth · ongoing · Medium confidence higher level of growth than what we witnessed in the past
    But yes, we are working towards and all our actions are designed to sustain a higher level of growth than what we witnessed in the past, and that is what our endeavor would be.

    — Naveen Pandey

Profitability

  • Margin profile Profitability · gradually and slowly · Medium confidence higher
    Our aspirations on margin profile is higher, but the next set of movement will come in gradually rather than more major.

    — Naveen Pandey

Portfolio Strategy

  • Clarity on balanced portfolio Portfolio Strategy · over the next 2-3 quarters · Medium confidence more clarity
    Over the next 2, 3 quarters, we will start seeing most of it happening Percy. As and when we do the changes, we will obviously talk about it. So, when the changes are happening, we will talk about it once they've happened. But you should see more clarity emerging on the balanced portfolio over the next 2 to 3 quarters.

    — Naveen Pandey

International Business

  • Performance International Business · next subsequent couple of quarters · Medium confidence get there (improve)
    But we are confident of what we are doing and we hope we will get there in the next subsequent couple of quarters.

    — Naveen Pandey

Input Costs

  • Copra prices Input Costs · coming months · Medium confidence ease a bit further
    On Copra, we have seen significant softening of prices as against quarter 2 and we expect that in the coming months, Copra should ease a bit further.

    — Naveen Pandey

Overall Margins

  • Improve margins Overall Margins · medium- to long-term basis · Medium confidence improve our margins from the level where we are
    On a medium- to long-term basis, we would still aspire to improve our margins from the level where we are.

    — Naveen Pandey

What to watch in Q4 FY26

Integration of Banjara (Vishal Personal Care)

next quarter
Current 2 states integrated in South
Target Integration complete for remaining southern states

Why it matters

Successful integration is key to realizing the full potential of the acquired brand and expanding the portfolio's reach and contribution.

The integration for the rest of the southern states has already been initiated and would be complete over the next quarter.

Risks & concerns

  • International Business Weakness

    medium

    International business declined mid-single digit Y-o-Y and has been weak due to partner choice and go-to-market issues in GCC and Africa.

    Management acknowledged

  • Rural Business Lagging Urban Growth

    medium

    Rural business is relatively weaker compared to urban growth, despite showing signs of revival in Q3.

    Management acknowledged

  • Temporary Volume Impact from Coconut Oil Pricing Correction

    low

    A conscious correction in pricing and discount index for Coconut Oil led to a temporary volume-led impact, which management believes is now settled.

    Management acknowledged

Q&A highlights

7 direct
Sustainability of Q3 growth and impact of pent-up demand from previous quarters. Direct
Now if you carry it forward and look at it on quarter 3 numbers or going forward, it is not a material impact, and I don't think so we should be too worried about it. Having said that, obviously, when you are in the high-growth trajectory, you can't really predict to the decimal point.

Management clarifies that while Q3 growth was strong, any pent-up demand impact from previous quarters is not material for future growth, emphasizing the company's high-growth trajectory.

Asked by Abneesh Roy

Drivers behind the sustained improvement in EBITDA margins. Direct
I think as we had shared earlier a couple of quarters back, there have been a lot of actions which have been taken in not just in the last 3, 4 months, but over a period of the last 7, 8 months, 9 months, which have kind of cumulated into a set of margin improving in.

Management attributes margin improvement to a sustained series of actions over several quarters, indicating a structural rather than short-term change in profitability.

Asked by Abneesh Roy

Whether the hair oil category revival is industry-wide or specific to Bajaj Consumer's strategies. Direct
I think we are doing our own job, and I'm proud extremely proud of what the team has been doing. But in terms of the category, yes, there is a certain amount of buoyancy in the category which we see. And that would translate into most of the brands which can get their act right benefiting from the same.

Management acknowledges broader category buoyancy but emphasizes that Bajaj Consumer's strong performance is also a result of its specific strategic focus and execution, particularly for ADHO.

Asked by Abneesh Roy

Outlook on Copra price correction and potential shift in strategy for Coconut Oil. Direct
But yes, the crop seems to be good, and we are going to expect a price correction... we will also focus on coconut, but it will not be a price led route. It would be more a brand-led route, which we will take to build the business.

Provides an outlook on a key raw material (Copra) and reiterates the strategic shift for Coconut Oil towards a brand-led approach, moving away from price-led competition, despite favorable input cost trends.

Asked by Abneesh Roy

Nature of challenges in the international business (structural vs. operational). Direct
I don't think so the issue is brand relevance or brand. I think the issue is more partner choice go-to-market people on the ground. And those are some of the fundamental corrections... In markets where you're working with country distributors, some of these changes have to be done more gradually and you have to work with partners to get the changes done.

Management clarifies that international business issues are primarily operational and related to distribution partners, rather than fundamental brand relevance, suggesting a path to gradual resolution.

Asked by Rehan Saiyyed

Contribution of new outlets to growth and the reason for the acceleration in Q3. Partial
So Percy, always a large amount would be consumer demand because if you will recollect, we have a reach availability to 4.5 million outlets. So even when we are going direct and we are reaching the outlet, what is happening is that we are executing the range better. It's not that we are making our product available for the first time.

Management explains that the growth acceleration is largely due to improved execution and better range availability in existing outlets, rather than solely new outlet additions, indicating efficiency gains.

Asked by Percy

Strategy for the broader portfolio beyond ADHO and Coconut, and timeline for clarity. Direct
On the rest of the portfolio, I think we have to do our work... you should see more clarity emerging on the balanced portfolio over the next 2 to 3 quarters.

Management indicates that while ADHO and Coconut are current priorities, a strategy for the rest of the portfolio is being developed, with more clarity expected within 2-3 quarters, providing a future focus area for investors.

Asked by Percy

Discrepancy in Bajaj Coconut growth compared to market leaders. Direct
Yes. There is a significant gap in the profile. We have taken corrections in terms of our pricing. We were operating at a certain discount to the market leader by offering better value to both consumer and trade. We have reduced that difference of pricing between us and the market leader. And that has resulted in our revenue growth being much lower. And that's a conscious correction which we have taken.

Management explains that lower growth in Bajaj Coconut is a conscious trade-off from strategic pricing corrections aimed at improving profitability and sustainability, rather than a failure to compete.

Asked by Mihir Shah

2 min read 6 chapters

Detailed narrative

Robust Q3 FY26 Financial Performance

Bajaj Consumer Care delivered a strong Q3 FY26, with standalone revenue growing 27% Y-o-Y to INR 287 crores and consolidated revenue increasing 32.7% Y-o-Y to INR 306 crores. This performance reflects early positive results from actions aimed at improving revenue growth and margins. Standalone EBITDA surged 99% to INR 58.4 crores, resulting in a 20.4% margin, a significant 740 basis points improvement Y-o-Y. Consolidated PAT stood at INR 46.4 crores with a margin of 15.1%.

Strategic Margin Expansion Initiatives

The company's gross margin on a standalone basis reached 59.8% for the quarter, marking an 800 basis points improvement Y-o-Y. This margin expansion is attributed to a combination of strategic pricing, revenue management, and mix improvement actions implemented over the past 7-9 months. Management emphasized that these are cumulative efforts, leading to a sustained improvement in profitability, with aspirations for even higher margin profiles in the future.

Strong Performance of Core Brands and Acquired Portfolio

Almond Drop Hair Oil (ADHO) was a key growth driver, delivering very strong value growth supported by double-digit volume growth and a nearly 37% increase in ASP spends. The Banjara brand, acquired under Vishal Personal Care, also contributed significantly with a strong 15% Y-o-Y growth. Bajaj Coconut experienced mid-single digit growth in Q3, following a conscious pricing correction that temporarily impacted volume but aimed for sustainable margins.

Distribution and Channel Strategy Driving Growth

The company's 'Aarohan' initiative has successfully expanded direct distribution, adding over 10% to its direct reach, with 25-40% outlet additions in specific states. General trade showed a strong recovery, growing in line with the company's overall performance, while organized trade (modern trade and e-commerce) also achieved double-digit growth. Despite a revival, the rural business remains relatively weaker compared to urban growth, indicating an area for continued focus.

Challenges and Outlook for International Business

The international business faced headwinds, declining mid-single digit Y-o-Y and remaining weak for the last couple of quarters, particularly in GCC and Africa. Management identified the core issue as related to distribution partner selection and go-to-market execution rather than brand relevance. They expressed confidence in their ongoing corrective actions and expect to see improvement in this segment over the next couple of quarters.

Favorable Input Cost Trends and Future Innovation

Input cost dynamics were mixed, with LLP (Light Liquid Paraffin) prices increasing by 2% sequentially, while Refined Mustard prices eased by 5%. Notably, Copra prices softened significantly compared to Q2, and management anticipates further easing in the coming months, which is a positive for future margins. The company plans calibrated and spaced-out innovation in specific opportunity areas, with more clarity on the broader portfolio strategy expected within the next 2-3 quarters.

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