Bajaj Consumer

Bajaj Consumer Care reported Q4 FY25 consolidated sales of INR 247 crores, marking a 5.4% YoY growth and 7.1% sequential growth. However, the full fiscal year 2025 saw a low single-digit decline in consolidated sales, reaching INR 950 crores. Standalone gross margin improved by 290 bps QoQ to 54.2% in Q4, but the FY25 gross margin was 80 bps lower YoY at 53.4% due to copra price inflation. Management noted signs of market recovery after a period of muted demand influenced by food inflation.

General Trade showed sequential growth of 7% in Q4, driven by a 15% QoQ recovery in the wholesale channel and rural areas, though it remained negative YoY. Organized Trade demonstrated strong performance with 30% YoY growth in Q4 and 18% for FY25, including a 22% YoY growth in Modern Trade. The RTM revamp 'Project Aarohan' expanded to Rajasthan, Haryana, Delhi, and Chhattisgarh, adding 24,000 new outlets and 1,300 new towns, with full implementation expected by May 2025.

E-commerce continued its robust growth trajectory, increasing 33% YoY in Q4 and 29% for FY25. Quick commerce, a subset of e-commerce, grew 60% YoY and 21% QoQ in Q4, with its saliency rising to 12% from 10% in the previous quarter. The international business also delivered strong results, growing 30% YoY in Q4 and 20% for FY25, with GCC and Africa contributing 25% YoY growth in Q4. New markets like Canada, Malaysia, USA, Tibet, and New Zealand contributed to this expansion.

ADHO, the core brand, grew 3% YoY in Q4 and 11% sequentially, with the Rs. 10 SKU growing 16% YoY. The Almond Drops Hair and Skin Care range showed significant momentum, growing 73% YoY in Q4 and 46% for FY25, largely driven by e-commerce. Bajaj 100% Pure Coconut Oil registered significant growth in Q4 and FY25, increasing its market share in Maharashtra from 1.6% to 2.2%. The non-ADHO portfolio currently accounts for approximately 20% of revenue, with a long-term target to reach 40%.

Copra prices saw significant increases over the last two quarters and are projected to remain bullish in the short term, impacting gross margins. The company acknowledged a delay in implementing price increases for coconut oil but has since corrected this with a mid-teen price hike in April 2025. Management expressed confidence in improving EBITDA margins, targeting above the previous 'bare minimum' range of 16-18% going forward^⏳, through a combination of price increases and cost restructuring initiatives.

Bajaj Consumer Care completed the acquisition of 49% equity in Vishal Personal Care Private Limited, which owns the Banjara's brand, with the remaining 51% expected to be acquired by Q1 FY26 (ideally May 2025). This acquisition is strategic for enhancing the company's portfolio and establishing a stronger foothold in South India. A leading consultant has been engaged for post-merger integration, which commenced in April 2025, with initial integration results anticipated within three months.