BAJAJCON - Bajaj Consumer

📊 NSE: BAJAJCON 🏢 Personal Care - Indian 📅 Last Updated: 12/13/2025 18:53

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 grew 13.3% YoY to INR 261.4 Cr. Standalone revenue grew 7.2% YoY to INR 241.6 Cr. Domestic business registered double-digit value growth, while the International Business (IB) saw high single-digit growth in Bangladesh but faced headwinds in GCC markets.

Geographic Revenue Split

Domestic operations contribute approximately 94% of consolidated revenue, while the International Business constitutes 6% of consolidated revenue as of fiscal 2025.

Profitability Margins

Consolidated Gross Margin for Q2 FY26 stood at 59.6%, an improvement of 690 bps YoY. Standalone Gross Margin was 59.3%, up 680 bps YoY. Consolidated PAT margin for Q2 FY26 was 16.2% (INR 42.3 Cr), up 32.8% YoY.

EBITDA Margin

Consolidated EBITDA margin for Q2 FY26 was 18.6% (INR 48.7 Cr), representing a 44.9% YoY increase. Standalone EBITDA margin was 20.5% (INR 49.6 Cr), up 42.3% YoY.

Capital Expenditure

The company maintains a low capital expenditure model with no large capex planned. It owns three manufacturing facilities and utilizes third-party units to maintain flexibility.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with nil debt as of March 2025. Liquid surplus was approximately INR 630 Cr, including marketable securities.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Light Liquid Paraffin (LLP), High-Density Polyethylene (HDPE), and Copra. LLP and HDPE costs are highly sensitive to crude oil price fluctuations.

Capacity Expansion

The company operates three owned manufacturing facilities in Himachal Pradesh, Uttarakhand, and Assam, supplemented by third-party manufacturing units. Specific MTPA capacity is not disclosed.

Raw Material Costs

Raw material costs are projected to remain range-bound, though rising copra prices constrained profitability in fiscal 2025. Gross margins improved by 690 bps in Q2 FY26 due to structured cost interventions.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was healthy at 20% for fiscal 2025. The company uses a mix of owned and third-party units to optimize production costs.

Logistics & Distribution

Distribution is managed through a wide network of wholesalers and distributors. The company is focusing on increasing direct reach to consumers through modern trade and e-commerce.

📈 Strategic Growth

Expected Growth Rate

5-9%

Growth Strategy

Strategy involves diversifying the product portfolio to reduce dependence on ADHO (target 40% non-ADHO revenue by FY29), scaling the Banjara's acquisition (Vishal Personal Care), and expanding the 'digital forward' portfolio which grew high teens in Q2 FY26.

Products & Services

Light Hair Oil (LHO), Coconut Oil, Hair Serums, Shampoos, Conditioners, Soaps, Body Lotions, and Skincare products.

Brand Portfolio

Bajaj Almond Drops Hair Oil (ADHO), Bajaj Brahmi Amla, Bajaj Coco Jasmine, Bajaj Kailash Parbat, Nomarks, Banjara’s, and Bajaj 100% Pure Coconut Oil.

New Products/Services

Recent launches include Almond Drop extensions (serums, shampoos, soaps) and the Bajaj Ethnic range. NPDs (New Product Developments) are expected to drive the 40% non-ADHO revenue target by FY29.

Market Expansion

Focusing on Modern Trade, E-commerce, and International markets like Bangladesh (high single-digit growth) and GCC (undergoing distributor transition).

Market Share & Ranking

The company is a leading manufacturer in the Light Hair Oil (LHO) segment with strong brand recall for Bajaj Almond Drops.

Strategic Alliances

Acquired 100% stake in Vishal Personal Care Ltd (Banjara’s) in May 2025 for approximately INR 120 Cr to strengthen the skincare and ethnic hair care portfolio.

🌍 External Factors

Industry Trends

The FMCG industry is seeing a shift toward premiumization and digital-first brands. Rural markets remain susceptible to downtrading during inflationary periods.

Competitive Landscape

Faces intense competition from both large FMCG players and unbranded local substitutes, particularly in the rural hair oil segment.

Competitive Moat

Moat is built on the strong brand recall of Bajaj Almond Drops and an extensive distribution network. Sustainability depends on successful diversification into non-ADHO categories.

Macro Economic Sensitivity

Highly sensitive to rural demand recovery and urban consumption trends. Inflationary pressures on crude oil directly impact the cost of LLP and HDPE.

Consumer Behavior

Shift toward larger packs (double-digit growth in Q2 FY26) and a revival in the digital-forward portfolio among urban consumers.

Geopolitical Risks

External headwinds in 'Rest of World' markets and distributor transitions in the GCC region have impacted international business performance.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to applicable labor laws and environmental obligations. The company is working toward measurable plans for a sustainable business to mitigate climate change risks.

Environmental Compliance

Formed a Board-level ESG committee to oversee priorities. Reported zero fatalities and zero lost time injuries (LTIFR) over the last four fiscal years.

Taxation Policy Impact

The company notes that government initiatives like tax relief could boost future consumer consumption. Specific corporate tax rates were not disclosed.