Skip to content

    Bajaj Consumer

    BAJAJCON
    Fast Moving Consumer Goods·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

    5

    • 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

    2

    • 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

    Metrics

    19

    Periods

    6

    Q4

    1
    • Gross Margin
      63%

    Q4 Consolidated

    5
    • 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

    1
    • ADHO Volume Growth
      10%

    Q4 Pure

    1
    • ADHO Volume Growth
      5%

    Q4 Standalone

    5
    • Revenue
      ₹308 Cr
      YoY+28.0%
    • EBITDA
      ₹78 Cr
      YoY+131%
    • EBITDA Margin
      25%
    • PAT
      ₹64.1 Cr
    • PAT Margin
      20.8%

    FY26

    6
    • Net Revenue
      ₹1,153 Cr
      YoY+21%
    • Gross Margin
      60%
    • EBITDA
      ₹224 Cr
    • EBITDA Margin
      19.5%
    • PAT
      ₹190 Cr

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Vishal Personal Care

    acquisition · integrated

    Liquidity

    Liquidity disclosed

    Company is holding good positions for input costs and has lean inventory at distributor level.

    Guidance & targets

    7
    CategoryTargetPriority
    Portfolio
    Non-ADHO Portfolio Size
    INR500 crores
    		High
    Portfolio
    Non-ADHO Portfolio CAGR
    30s kind of CAGR
    		High
    Portfolio
    Core Brands Revenue CAGR
    double-digit revenue CAGR
    		High
    Profitability
    EBITDA Margin
    low 20s to mid 20s
    		High
    Distribution
    Aarohan Project Growth Delta
    2% to 3% improvement
    		High
    Distribution
    Aarohan Project Growth Delta Sustainability
    4% is sustainable
    		High
    Advertising
    Advertising Spend Level for ADHO
    maintain it
    		High

    Input Cost Trends

    quarter 2, quarter 3 onwards
    CurrentExtreme volatility with nearly 100% of cost base under inflation
    TargetCooling 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.

    How to verify

    risks_and_concerns[risk='Input Cost Volatility']

    Risks & concerns

    2
    RiskSeverity

    Input Cost Volatility

    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

    high

    Hyperinflation

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

    high

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.