Bajaj Consumer Care Limited held its Q1 FY27 earnings conference call on July 13, 2026, moderated by ICICI Securities. The management presentation and subsequent Q&A session covered financial performance, operational updates, and strategic outlook.

Financial Performance for Q1 FY27

  • Revenue stood at ₹341 crores, representing a growth of over 28% year-over-year (YoY).
  • Gross margin was 61.8%, a sequential decline from 63% in Q4 FY26 but a 510 basis point improvement over Q1 FY26.
  • Advertising spends were maintained at 14.6% of revenue.
  • The company achieved savings of over 600 basis points on fixed costs, including employee costs, YoY.
  • Consolidated EBITDA doubled to an absolute value of ₹84.4 crores, translating to a margin of 24.7%.
  • Profit After Tax (PAT) was ₹70.7 crores, with a margin of 20.7%.
  • The Average Selling Price (ASP) for the quarter increased by 29% YoY.

Operational and Channel Performance

  • Growth was broad-based across general trade and organized trade channels, both delivering growth in the "strong 20s" (percentage).
  • Urban retail, wholesale, and rural markets all delivered strong growth, with rural performance growing in line with urban.
  • Within organized trade, modern trade and e-commerce performed well. The institutional business was weak but constitutes less than 1% of the company's mix.
  • The international business saw a strong rebound across key markets. Nepal and Bangladesh demonstrated continued double-digit growth and margin improvement. The MENA region and Rest of World, which were challenged last year, rebounded strongly.

Brand and Portfolio Performance

  • Almond Drop Hair Oil (ADHO) delivered a "low teen" volume growth on an MLH-adjusted basis. Growth was led by small packs and the sachet business.
  • The non-ADHO growth portfolio (including coconut oil and Banjara's) grew at a "high single-digit" rate sequentially against the previous quarter, despite value deflation in the coconut portfolio.
  • The ADHO portfolio constitutes approximately 80% of total revenue, with the growth portfolio making up the remainder. The Banjara's brand specifically contributes around 5% to total revenue.
  • The company maintained a robust SOV-SOM (Share of Voice - Share of Market) ratio in traditional media and increased investments in influencer-led marketing campaigns on digital platforms.

Input Costs and Margin Outlook

  • The war in West Asia created extreme volatility in raw material prices, particularly affecting petroleum-related products (LLP, packaging) and edible oils (mustard, almond).
  • The company undertook selective price increases and MLH (Maximum Retail Price) reductions to counter inflation.
  • Management indicated that the worst of the supply chain issues is likely behind them but acknowledged carrying high-cost inventory.
  • Gross margins are expected to remain under pressure in Q2 FY27 before cooling sequentially in Q3 and Q4. No further pricing actions are planned.
  • The long-term aspiration for EBITDA margins is to be on the "higher side," but performance will depend on top-line growth and operational efficiency.

Strategic Initiatives

  • Project Aarohan: The distribution expansion initiative is being executed in four large states. It is expected to deliver a one-time benefit of 200-300 basis points in growth in new markets and provide multi-year benefits through enhanced distribution reach and capability.
  • Growth Portfolio: The company remains committed to building its non-ADHO portfolio (coconut oil, Banjara's) profitably. A lot of work is being done on revamping the Banjara's brand, which is a clear part of the growth strategy and is expected to be a major growth leg.
  • M&A Strategy: The management stated there is nothing to disclose regarding mergers or acquisitions at this time.
  • Advertising Strategy: The company intends to maintain its advertising spend in the historical range of 15-16% of revenue over the medium term.

Guidance and Outlook

  • The company does not provide specific quarterly guidance.
  • The long-term aspiration is to deliver consistent double-digit to low-teens revenue growth. Management would be "very disappointed" with growth below double digits in any quarter.
  • The single largest risk to sustaining performance is identified as execution risk—the ability to consistently gain market share and distribute products to more outlets.