This article first appeared on GuruFocus .
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Stand-alone Revenue:INR287 crore, 27% growth Y-o-Y.
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Consolidated Revenue:INR306 crore, 32.7% growth Y-o-Y.
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Stand-alone Gross Margin:59.8%, improved by 800 basis points Y-o-Y.
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Stand-alone EBITDA:INR58.4 crore, 99% growth, EBITDA margin of 20.4%.
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Consolidated EBITDA:109% growth, margin of 18.6%, 600 basis point improvement Y-o-Y.
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Stand-alone PAT:INR47.6 crore, margin of 16.6%.
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Consolidated PAT:INR46.4 crore, margin of 15.1%.
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Almond Drop Hair Oil:Strong value growth with double-digit volume growth.
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Bajaj Coconut Oil:Mid-single digit growth in Q3.
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Banjara Brand:15% year-on-year growth for the quarter.
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Input Prices:Copra prices softened, refined mustard prices declined by 5% sequentially.
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Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bajaj Consumer Care Ltd ( BOM:533229 ) reported a strong revenue growth of 27% on a stand-alone basis and 32.7% on a consolidated basis for Q3 FY26.
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The company's gross margin improved significantly by 800 basis points year-over-year, reaching 59.8% for the quarter.
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EBITDA on a stand-alone basis grew by 99%, translating into an EBITDA margin of 20.4%, while consolidated EBITDA grew by 109%, with a margin of 18.6%.
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The Almond Drop Hair Oil brand delivered strong value growth, supported by double-digit volume growth.
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The company has successfully expanded its direct distribution reach by over 10% this year, contributing to its growth strategy.
Negative Points
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The international business segment continues to face challenges, with a mid-single-digit decline year-over-year.
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The rural business, although showing signs of recovery, remains weaker compared to urban growth.
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CSD and CPC channels within organized trade were muted, impacting overall performance in these segments.
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The company has taken a strategic correction in pricing for its coconut oil segment, which temporarily impacted volumes.
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Despite improvements, the company acknowledges that further margin enhancements will be gradual and not immediate.
Q & A Highlights
Q: What is the sustainable growth rate for Bajaj Consumer Care given the recent explosive growth, and what are the expectations for future margins? A: Naveen Pandey, Managing Director, explained that while there was some pent-up demand, the impact is not material for future quarters. The company aims to sustain a higher growth level than in the past. Regarding margins, improvements have been made through strategic actions, and further gradual improvements are expected.
Q: Is the recent growth in the hair oil category an industry-wide trend or specific to Bajaj Consumer Care? A: Naveen Pandey noted that there is a buoyancy in the category benefiting multiple brands. Bajaj Consumer Care has focused on its core brand, ADHO, and invested in advertising, which has contributed to its growth.
Q: With Copra prices correcting, will Bajaj Consumer Care focus more on coconut oil products? A: Naveen Pandey stated that while they expect a price correction in Copra, the focus will remain on building the brand sustainably rather than through price cuts. The company will continue to focus on ADHO while also maintaining a strategic approach to coconut oil.
Q: What are the strategic changes Bajaj Consumer Care has implemented to drive growth? A: Naveen Pandey highlighted the focus on direct distribution expansion, which has increased outlet reach by 10%. The company has also invested in advertising and brand building, particularly for ADHO, which has driven growth.
Q: How does Bajaj Consumer Care plan to manage its product portfolio, and are there new product launches expected? A: Naveen Pandey mentioned that while the focus remains on ADHO and coconut oil, the company will introduce new products in specific opportunity areas. The portfolio strategy will be optimized over the next two to three quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
