Bajaj Consumer Care (BAJAJCON) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 sales were INR 230.7 crores, with H1 FY25 at INR 472.4 crores; Q2 sales declined 0.4% year-over-year, but consolidated volume grew 1.1%.

• Urban demand remained sluggish, while rural markets showed signs of recovery; retail channel steady, wholesalers weak.

• Retail Loyalty Program for top urban sellers delivered 27% growth in Q2 and 21% in H1 FY25.

• Project Aarohan, aimed at distribution expansion and efficiency, showed promising pilot results in UP and MP, adding 280 new towns.

• E-commerce, quick commerce, and international business delivered robust double-digit growth, with international business up 36% YoY and Bangladesh up 103%.

Financial highlights

• Standalone gross margin for Q2 FY25 was 52.5%; H1 FY25 gross margin at 53.9%.

• Standalone EBITDA for Q2 was INR 34.9 crores (15.5% of sales); H1 EBITDA at INR 73.2 crores (15.8% of sales).

• Q2 PAT was INR 33.2 crores; H1 PAT at INR 71.2 crores.

• Gross margin declined due to adverse product mix and higher raw material (RMO, copra) prices.

• Advertisement & sales promotion expenses reduced by 18.8% YoY in Q2.

Outlook and guidance

• Management maintains a medium-term growth target of 10% CAGR, citing rural recovery and urban bottoming out.

• Margin guidance remains at 16%-18% over the medium term, though near-term volatility is expected due to raw material prices.

• Focus remains on expanding distribution, portfolio diversification, and leveraging digital and e-commerce channels.

• Project Aarohan underway to revamp distribution, with pilot in UP and MP.

• Continued investment in digital marketing and new product launches to drive growth.