Bajaj Consumer Care (BAJAJCON) Q1 26/27 earnings summary

Executive summary

• Revenue for Q1 FY27 reached INR 341.4 crores, marking over 28% year-over-year growth despite volatile raw material prices due to geopolitical tensions in West Asia.

• Strong performance was broad-based across general trade, urban, rural, modern trade, and e-commerce channels, with institutional business remaining weak.

• International business rebounded strongly, with Nepal, Bangladesh, MENA, GCC, Africa, and RoW regions showing double-digit growth and margin improvement.

• Almond Drops Hair Oil (ADHO) delivered low teen volume growth, led by small packs and sachets, and maintained robust customer metrics.

• Financials restated to reflect the Scheme of Arrangement with Vishal Personal Care Limited, effective from May 2026, with an appointed date of March 2025.

Financial highlights

• Consolidated net sales for Q1 FY27 reached INR 341.4 Cr, up 28.3% year-over-year and 4.6% sequentially.

• Gross margin stood at 61.8%, up from 56.7% in Q1 FY26 but down sequentially from 63%.

• EBITDA doubled year-over-year to INR 84.4 crores, with a margin of 24.7%.

• PAT for the quarter stood at INR 70.7 crores, with a margin of 20.7%.

• Advertising and sales promotion expenses increased 28.7% year-over-year, maintained at 14.6% of revenue.

Outlook and guidance

• Gross margins expected to remain under pressure in Q2 due to high-cost inventory and ongoing input cost volatility; improvement anticipated in Q3 and Q4 as spot prices cool.

• EBITDA margins are expected to operate in the low to mid-20s, with no significant one-offs in the current quarter.

• Long-term aspiration is consistent double-digit to low teens growth, with a focus on market share gains and execution.

• International business is now delivering double-digit EBITDA and is positioned for profitable, sustainable scaling.

• No forward-looking guidance on non-ADHO portfolio growth or M&A activity.