Bajaj Consumer Care Limited — Q4 FY25 earnings call

Call held 5 May 2025

Management summary

Bajaj Consumer Care reported a mixed Q4 FY25, with consolidated sales growing 5.4% YoY to INR 247 crores, but full-year sales saw a low single-digit decline. Gross margins improved sequentially but were down YoY for the full year due to copra inflation. Strong growth was observed in organized trade, e-commerce, and international markets, while general trade remained challenging. The company completed a significant acquisition and is optimistic about future growth and margin expansion.

Highlights

  • Q4 FY25 Consolidated Sales grew 5.4% YoY to INR 247 crores, with sequential growth of 7.1%.

  • Q4 FY25 Standalone Gross Margin improved by 290 bps QoQ to 54.2%, driven by improved saliency of ADHO and price increases.

  • Organized Trade registered strong growth of 30% YoY in Q4 FY25 and 18% for the full year, with Modern Trade up 22% YoY in Q4.

  • E-commerce channel grew 33% YoY in Q4 FY25 and 29% for FY25, achieving highest ever market share of 25% for coconut oil on Flipkart.

  • International business recorded robust growth of 30% YoY in Q4 FY25 and 20% for FY25, with GCC and Africa growing 25% YoY in Q4.

Concerns

  • FY25 Consolidated Sales registered a low single-digit decline.

  • FY25 Standalone Gross Margin was lower by 80 bps YoY at 53.4% due to inflation in copra prices and product mix.

  • General Trade remained negative YoY in Q4, despite sequential growth of 7%.

  • Reliance Retail saw a slowdown in Q4 and a decline in FY25 due to store consolidation.

  • Copra prices increased over the last two quarters and are expected to remain bullish in the short term.

Key financials

2 periods

Headline

  • Consolidated Sales
    ₹247 Cr
    YoY +5.4% QoQ +7.1%
  • Standalone Gross Margin
    54.2%
    QoQ +0.29%
  • Standalone EBITDA
    ₹33.8 Cr
  • Standalone EBITDA Margin
    14.1%
  • Standalone PAT
    ₹31.5 Cr
  • Standalone PAT Margin
    13.1%

FY25

  • Consolidated Sales
    ₹950 Cr
  • Standalone Gross Margin
    53.4%
    YoY -0.08%
  • Standalone EBITDA
    ₹136.3 Cr
  • Standalone EBITDA Margin
    14.7%
  • Standalone PAT
    ₹130.1 Cr
  • Standalone PAT Margin
    14%

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

  • General Trade
    7% QoQ Growth
  • Wholesale Channel
    15% QoQ Growth
  • Organized Trade
    30% Q4 YoY Growth18% FY25 Growth
  • Modern Trade
    22% Q4 YoY Growth
  • E-commerce
    33% Q4 YoY Growth29% FY25 Growth
  • Quick Commerce
    60% Q4 YoY Growth21% Q4 QoQ Growth12% Q4 Saliency
  • Canteens and Institutions
    42% Q4 YoY Growth
  • International Business
    30% Q4 YoY Growth20% FY25 Growth
  • ADHO
    3% Q4 YoY Growth11% Sequential Growth
  • Almond Drops Hair and Skin Care
    73% Q4 YoY Growth46% FY25 Growth
  • AD Soap
    114% Growth in OT channel
  • AD Serum
    44% YTD Growth
  • Bajaj 100% Pure Coconut Oil
    2.2% Maharashtra Market Share Q41.6% Maharashtra Market Share Q4 (Previous)

Capital allocation

high confidence
  • M&A Vishal Personal Care Private Limited (Banjara's brand) Acquisition · Closed

    Enhancing portfolio and market presence, establishing foothold in South India.

    During the quarter, the Company completed the acquisition of 49% of equity share capital of Vishal Personal Care Private Limited, the Company holding the Banjaras brand, balance 51% is expected to be completed in Q1 FY26. With this Vishal Personal Care which will become a wholly owned subsidy of BCCL. For post-merger integration, a leading consultant is already engaged to design and integrate the operations. This has already commenced in April 2025.

Guidance & targets

Revenue

  • Non-ADHO Revenue Share Revenue · Long-term · Medium confidence 40%

    From ~20% today

    More than what our target for that, our long-term target as I had mentioned earlier is getting closer to 40%, our objective now would be to ensure that Almond Drops grows strongly. Now that the market is coming back, our objective focus will be to make sure Almond Drops grows strongly and make sure that the products beyond Almond Drops grow faster than Almond Drops.

    — Jaideep Nandi

  • Coconut Oil Monthly Turnover Revenue · FY26 · Medium confidence Much higher than ₹10 crores

    Previously ₹10 crores → Much higher than ₹10 crores

    I mean clearly now that our product has been seeing an average of about a 10 Cr kind of a number coming up regularly month after month without much of an effort much of this thing I think is a strong testimony of what the product has been able to establish.

    — Jaideep Nandi

  • Almond Drops Hair & Skin Care Monthly Turnover Revenue · Next 2 years · Medium confidence ₹4-5 crores
    We are looking at the latest about Rs. 4 to 5 Cr kind of a turnover coming out of this on a monthly basis in the next 2 years or so.

    — Jaideep Nandi

Profitability

  • EBITDA Margin Profitability · Going forward · Medium confidence Higher than 16-18%

    From 16-18% today

    I think that EBITDA margin of 16% was a very bare basic minimum range. I think we are looking anywhere at a much higher EBITDA margin than that... But structurally, if you look at the 16% to 18% EBITDA margin was a given. It still remains a given. So, 16% to 18% I would think would still remain a basic bare minimum. And now with the kind of improvements that we are looking at price increases, looking at some of the restructuring of costs, etc., I think we should be looking at a little higher than that going forward.

    — Jaideep Nandi

M&A

  • Banjara's Acquisition Completion (remaining 51%) M&A · Q1 FY26 (ideally May 2025) · High confidence 100% acquisition

    From 49% acquired today

    balance 51% is expected to be completed in Q1 FY26.

    — Jaideep Nandi

What to watch in Q1 FY26

Banjara's acquisition completion and integration progress

Q1 FY26 (May 2025 for 100% acquisition, 3 months for integration results)
Current 49% acquired, integration started April 2025
Target 100% acquisition completed, visible integration results

Why it matters

This M&A is a key strategic move for portfolio diversification and South India market entry; its successful integration is crucial for future growth.

balance 51% is expected to be completed in Q1 FY26.

Risks & concerns

  • Copra Price Inflation

    medium

    Copra prices increased over the last two quarters and are expected to remain bullish in the short term, impacting gross margins.

    Management acknowledged

  • Demand Slowdown due to Food Inflation

    low

    Hair oil market was muted for 3-4 years due to high food inflation, particularly impacting value-added products, though market is now showing recovery signs.

    Management acknowledged

  • Competitive Intensity in Mid-Packs

    low

    Heightened competitive activity from traditional and digital players in mid-pack segments impacted performance.

    Management acknowledged

  • Delayed Price Increases for Coconut Oil

    low

    Company lagged in taking timely price increases for coconut oil during sharp copra price rises, but corrective mid-teen price hike was implemented in April 2025.

    Management acknowledged

Q&A highlights

7 direct
ADHO growth vs market growth for value-added hair oil Partial
If you look at the value-added hair oils, the market is pretty mixed... Almond Drops has lagged behind overall hair oils. But if you look at within the value-added hair oils itself, you look at the top three players, most of them have not done very well... But now that the market is looking up, now the market is showing signs of recovery, we feel these will come back very strongly.

Analyst questioned the anemic growth of value-added hair oil market and ADHO's performance, management acknowledged past lag but expressed confidence in recovery.

Asked by Kaushik Poddar

April month performance Direct
So month of April has been good. It is going on a similar direction as that... I would say that it has been more or less similar to what is happening in the quarter in discussion that we are seeing. So it's been good, and I think we are pretty quiet optimistic that we'll have a good quarter as well as the full year.

Provides early indication of Q1 FY26 trends, suggesting continued positive momentum from Q4 FY25.

Asked by Kaushik Poddar

Coconut oil market growth and market share Direct
if you look at the coconut oil market, the market grew by a little more than double digits in the quarter and just close to double digit in the full year. But if you look at the volume growth... the growth was in low single digit. And this is mainly because of the kind of copra price increases that we are seeing.

Clarifies the impact of copra price inflation on volume vs value growth and highlights specific market share gains for Bajaj's coconut oil.

Asked by Ajay Thakur

Non-ADHO share of revenue and targets Direct
Almond Drops is at 80% or so. That is where the saliency is. And now the saliency of the products beyond Almond Drops... is around close to 20%. More than what our target for that, our long-term target as I had mentioned earlier is getting closer to 40%...

Details the current contribution of non-core products and the strategic long-term goal for portfolio diversification.

Asked by Ajay Thakur

Profitability of coconut oil post price action Direct
Yes, absolutely. Coconut was always profitable. It is just that in the mid cycle where we lagged a little behind because the price increases were happening fast and furious... That I think we have now come over this thing. April, as I said, we took a mid-teens price increase...

Addresses concerns about profitability in a volatile input cost environment and confirms corrective pricing actions have been taken.

Asked by Abhijit Kundu

EBITDA margin improvement Direct
I think that EBITDA margin of 16% was a very bare basic minimum range. I think we are looking anywhere at a much higher EBITDA margin than that... I think we should be looking at a little higher than that going forward.

Management provides a clear directional target for EBITDA margin expansion, indicating confidence in price increases and cost restructuring.

Asked by Abhijit Kundu

Banjara's acquisition integration and timeline Direct
we should be completing our 100% acquisition with the tranche to buy... Parallelly from April 2025, we have engaged with a leading consultant... And I think within the next 3 months or so you should see this up and running.

Provides specific timelines for the completion of the acquisition and the expected visibility of integration results, crucial for assessing the M&A's impact.

Asked by Dhruv

Saliency of modern trade and e-commerce for overall company, ADHO, and Coconut Oil Direct
See, I mean if you look at with a 30% saliency that you are getting now this is divided in modern trade both B2B as well as B2C, both put together it's a little more than double digit. E- commerce is just a little less than double digit and the balance comes from the CSD-CPC channels... In terms of Almond Drops, modern trade obviously has a large contribution of Almond Drops... While if you look at e-commerce... well, 60% comes from Almond Drops...

Offers a detailed breakdown of channel contributions for different product categories, highlighting the strategic importance of modern trade and e-commerce.

Asked by Dhiraj Mistry

3 min read 6 chapters

Detailed narrative

Overall Performance & Market Recovery

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.

Channel and Distribution Expansion

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 and International Business Growth

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.

Brand Performance and Portfolio Diversification

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%.

Input Costs, Pricing, and Margin Outlook

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.

Strategic Acquisition of Banjara's Brand

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.

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