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Bajaj Consumer Care Limited — Q4 FY26 earnings call

Call held 17 Apr 2026

Management summary

Bajaj Consumer Care reported a strong Q4 FY26, marking a turnaround year with record revenues and significant margin expansion. The company achieved INR1,153 crores in net revenue for FY26, growing 21%, and Q4 consolidated revenue grew 32% to INR327 crores. Margins saw substantial improvement, with Q4 consolidated EBITDA up 135% to INR77 crores, driven by strategic pricing, mix improvement, and MLH adjustments. While input cost volatility remains a concern, management expressed confidence in maintaining margins within the low to mid-20s range and outlined plans for continued growth in both core and non-ADHO portfolios.

Highlights

Achieved record FY26 net revenue of INR1,153 crores, growing 21% YoY and crossing the INR1,000 crores mark for the first time.
Delivered strong Q4 consolidated revenue growth of 32% YoY to INR327 crores.
Significant margin expansion with Q4 consolidated EBITDA growing 135% YoY to INR77 crores, reaching a 23.7% margin, and FY26 gross margin improving by 650 bps to 60%.
Non-ADHO growth portfolio reached INR225 crores in FY26, with a target to grow to INR500 crores in the next three years.
General Trade (GT) showed strong teens growth for the full year, and Organized Trade (OT) grew in the 20s in Q4, contributing 30% to overall sales.

Concerns

Extreme volatility in input costs (LLP, packaging material, mustard, copra) due to the 'war in the Gulf,' delaying price cooling and necessitating pricing actions.
International business experienced a challenging year and declined in Q4, though Nepal and Bangladesh showed growth.

Key financials

6 periods

Q4

Gross Margin
63%

Q4 Consolidated

Revenue
₹327 Cr
YoY +32%
EBITDA
₹77 Cr
YoY +135%
EBITDA Margin
23.7%
PAT
₹63.6 Cr
PAT Margin
19.5%

Q4 MLH Adjusted

ADHO Volume Growth
10%

Q4 Pure

ADHO Volume Growth
5%

Q4 Standalone

Revenue
₹308 Cr
YoY +28%
EBITDA
₹78 Cr
YoY +131%
EBITDA Margin
25%
PAT
₹64.1 Cr
PAT Margin
20.8%

FY26

Net Revenue
₹1,153 Cr
YoY +21%
Gross Margin
60%
EBITDA
₹224 Cr
EBITDA Margin
19.5%
PAT
₹190 Cr
PAT Margin
16.5%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	234	234	250	273	265 +13%	306 +31%	327 +31%	342 +25%
Expenses	201	208	219	232	217	250	250	258
EBITDA	33	26	32	41	48 +45%	56 +115%	77 +141%	83 +102%
Margin	14%	11%	13%	15%	18%	18%	23%	24%
Other income	9	8	9	8	8	5	6	8
Interest	0	0	0	0	0	0	0	0
Depreciation	3	3	3	2	4	5	5	4
Profit before tax	39	31	38	46	51 +31%	56 +81%	78 +105%	87 +89%
Tax rate	18%	19%	18%	17%	18%	18%	18%	19%
Net profit	32	25	31	38	42 +31%	46 +84%	64 +106%	71 +87%
EPS	2.32	1.85	2.26	2.79	3.24	3.55	4.87	5.42

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.

Capital allocation

high confidence

M&A Vishal Personal Care Acquisition · Integrated

Portfolio expansion and diversification
Seeing its first year into consolidated revenues for FY26

The only thing is that we have, basically we've acquired a company in quarter 1 of this year called Vishal Personal Care, which is seeing its first year into the consolidated revenues.
Liquidity Liquidity disclosed Company is holding good positions for input costs and has lean inventory at distributor level.

Where we are fortunate is that we are holding good positions, which cover us for a good portion of the quarter and which will help us buy time to tide over this cycle.

Guidance & targets

Portfolio

Non-ADHO Portfolio Size Portfolio · over the next three years · High confidence INR500 crores

We will be further focusing on growing this portfolio to around INR500 crores in size over the next three years.

— Naveen Pandey
Non-ADHO Portfolio CAGR Portfolio · over the next 3 years · High confidence 30s kind of CAGR

So Percy, we want this portfolio to basically become a close to a INR500 crores portfolio over the next 3 years, which means it has to do a 30s kind of CAGR.

— Naveen Pandey
Core Brands Revenue CAGR Portfolio · over a period · High confidence double-digit revenue CAGR

Our core brands would basically, we've anyways said that if we do around a double-digit revenue CAGR over a period, we'll be happy.

— Naveen Pandey

Profitability

EBITDA Margin Profitability · medium-term basis · High confidence low 20s to mid 20s

We feel extremely confident in the place where we have reached with respect to our gross margins and intend to now operate in the same zone over a medium-term basis.

— Naveen Pandey

Distribution

Aarohan Project Growth Delta Distribution · Ongoing · High confidence 2% to 3% improvement

what we've experienced is around anywhere given to 2% to 3% improvement, delta performance for us in places where we have done Aarohan versus places where we have not done Aarohan.

— Naveen Pandey
Aarohan Project Growth Delta Sustainability Distribution · Ongoing · High confidence 4% is sustainable

I think 4% is sustainable.

— Naveen Pandey

Advertising

Advertising Spend Level for ADHO Advertising · Ongoing · High confidence maintain it

this level of advertising is the right level of advertising for a brand like ours, and we would want to maintain it.

— Naveen Pandey

What to watch in Q1 FY27

Input Cost Trends

quarter 2, quarter 3 onwards

Current Extreme volatility with nearly 100% of cost base under inflation

Target Cooling off or return to a new normal

Why it matters

Input costs are a major risk; their trajectory will impact future margin sustainability and pricing actions.

quarter 2, quarter 3 onwards, the scenario could be that we might see cooling off and this coming back to at least a new normal, if not the old prices.

Risks & concerns

Input Cost Volatility
high

War in the Gulf has created extreme volatility in the prices of LLP and packaging material, delaying price cooling in mustard and copra.

Management acknowledged
Hyperinflation
high

Nearly 100% of the cost base is under inflation, requiring continuous fine-tuning of actions to protect margins.

Management acknowledged

Q&A highlights

8 direct

Q4 Volume Growth and Margin Drivers Direct

at a volume level, overall, we are in the same zone by and large as we were in the quarter 3 versus quarter 4. So not much change. But within the brands, there is obviously a mix change for a more accretive mix for us in this quarter, which is yielding both a margin improvement as well as a revenue uplift.

Clarified that Q4 growth was primarily driven by mix improvement and pricing actions rather than significant volume growth, despite strong revenue numbers.

Asked by Abneesh Roy

Impact of Hyperinflation on Margins and Future Actions Direct

nearly 100% of our cost base is under inflation... Where we are fortunate is that we are holding good positions, which cover us for a good portion of the quarter... we've already taken certain MLH adjustments... will have to take some amount of frontal pricing as well to manage the quarter.

Management acknowledged widespread inflation impacting nearly all cost bases and outlined a strategy of inventory holding, MLH adjustments, and frontal pricing to protect margins.

Asked by Abneesh Roy

Project Aarohan's Contribution and Sustainability Direct

what we've experienced is around anywhere given to 2% to 3% improvement, delta performance for us in places where we have done Aarohan versus places where we have not done Aarohan.

Asked by Binay Shukla

Hair Oil as a 'Sunset Sector' Direct

I don't believe hair oil is a sunset sector. It's a $2 billion plus market with a 20% plus margin with a 92% penetration... I don't believe hair oil is a sunset sector. It's a mature category, yes, I'll admit that. And I don't think so that is something also which is a worry for a company like us. We have extremely high headroom to grow within the category.

Management strongly refuted the notion of hair oil being a sunset sector, highlighting its large market size, high penetration, and significant growth headroom, reassuring investors about the core business.

Asked by Vivek Gautam

Drivers of Sequential EBITDA Margin Jump Direct

taken certain MLH reductions, which we have mentioned about, which also basically help in terms of margin for us. Also, there has been a little bit of favorable mix movement between quarter 3 and quarter 4... quarter 4 the revenue delivery has been higher than quarter 3... when you have a higher revenue delivery, it flows through.

Explained the significant sequential margin improvement by attributing it to MLH adjustments, favorable product mix, and higher revenue delivery, clarifying the factors behind the strong Q4 profitability.

Asked by Percy

Non-ADHO Portfolio Growth Target and Composition Direct

we want this portfolio to basically become a close to a INR500 crores portfolio over the next 3 years, which means it has to do a 30s kind of CAGR... A large part will be coconut, yes.

Provided a clear financial target for the non-ADHO portfolio (INR500 crores in 3 years at 30s CAGR) and indicated that coconut would be a significant contributor, detailing the diversification strategy.

Asked by Percy

Inventory Levels and Channel Loading Direct

There is no channel filling for us, Shirish. There is just no channel filling for us... trade has not seen any major stock up. At a distributor level also, our inventory is very lean and we are very happy with the status of our inventory at distributors.

Reassured analysts that the strong Q4 performance was not due to channel stuffing or trade loading, indicating healthy underlying demand and lean inventory across the distribution network.

Asked by Shirish Pardeshi

Sustainability of Current Margin Levels Direct

we aspire to maintain margins between the low to the mid 20s... I believe a lot of the hard work which we had done is behind us, and we have now reached a place wherein we can continue our steady-state operation.

Management reiterated its confidence in maintaining margins within the low to mid-20s range, suggesting that the recent improvements are sustainable due to past strategic actions and operational efficiencies.

Asked by Gunit Singh

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance and Turnaround

Bajaj Consumer Care achieved a record net revenue of INR1,153 crores in FY26, marking a 21% year-on-year growth and crossing the INR1,000 crores milestone for the first time. The company reported a full-year EBITDA of INR224 crores with a 19.5% margin and a PAT of INR190 crores at a 16.5% margin, signifying a 'year of turnaround' and setting a new base for future growth.

Robust Q4 Growth and Margin Expansion

Q4 FY26 saw consolidated revenue grow by 32% year-on-year to INR327 crores, with standalone revenue up 28% to INR308 crores. Gross margin for the quarter stood at 63%, contributing to a 650 basis points improvement for the full year. Consolidated EBITDA surged by 135% to INR77 crores, achieving a 23.7% margin, driven by strategic pricing, favorable mix movement, and MLH adjustments.

Diversification into Non-ADHO Portfolio

The non-ADHO growth portfolio generated INR225 crores in FY26 and is targeted to reach INR500 crores in size over the next three years, implying a 30s CAGR. This strategy involves scaling up existing brands like Bajaj Coconut and Bajaj Banjara's, which saw double-digit growth and low-teen margin delivery respectively, and introducing new brands to the market.

Distribution and Channel Performance

General Trade (GT) demonstrated strong teens growth for the full year, with urban channels outperforming rural. Organized Trade (OT) recorded a robust 20s growth in Q4 and now contributes 30% to overall sales, enabling premiumization and faster innovation. The Project Aarohan initiative, focused on enhancing direct distribution, has yielded a 2-3% delta performance in covered areas and is being expanded to five new states in FY27.

Input Cost Volatility and Margin Management

The company faces 'extreme volatility' in input costs, including LLP, packaging material, mustard, and copra, exacerbated by global events. Management noted that nearly 100% of its cost base is under inflation. To counter this, Bajaj Consumer Care has implemented MLH adjustments, is considering frontal pricing actions, and is leveraging existing inventory positions to manage costs, aiming to maintain EBITDA margins within the 'low 20s to mid 20s' range.

International Business and ADHO Brand Strength

While the international business had a challenging year and declined in Q4, Nepal and Bangladesh markets showed growth and margin improvement, with Bangladesh achieving breakeven. The core brand, ADHO, delivered a 'stupendous year' with full-year revenue growth in the 20s, gaining market share, and benefiting from increased advertising spends (up 34% in Q4 YoY) to maintain share of voice.

This is an AI-generated summary of a publicly available earnings call transcript.

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