ICICI Securities retained its ‘Buy’ rating on Bajaj Consumer Care and raised its target price to Rs 760 from Rs 600, implying an upside of 15%. This revision is backed by an upgrade in EPS estimates for FY27 and FY28 by 24% and 28%, respectively, reflecting higher confidence in sales growth and margin sustainability.
Bajaj Consumer Care: Robust Q1FY27 performance
The company reported strong consolidated revenue growth of 25% year-on-year, reaching Rs 340 crore. This growth was primarily driven by low-teens volume growth in the flagship Almond Drops (ADHO) brand and continued double-digit sequential traction across the non-ADHO portfolio.
Banjara’s financial as well as team integration has been completed. The company is broadly on track to meet its revenue target of Rs 500 crore (non-ADHO) within three years.
Bajaj Consumer Care: Significant margin expansion
Despite elevated brand investments, the company achieved a major jump in profitability. EBITDA margins expanded by 939 bps YoY to 24.4%, and gross margins reached 61.8%. Management intends to maintain EBITDA margins in the low-to-mid-20s range over the medium term.
Strategic evolution of project “Aarohan”
The sales-focused “Aarohan” project is transitioning from reach expansion to a focus on productivity and throughput improvement. Markets where Aarohan has been implemented have historically shown 4% higher growth than non-Aarohan markets, and the company expects to complete the rollout in remaining markets by FY27.
Bajaj Consumer Care: Broad-based channel growth
Organised trade (modern trade, e-commerce, and quick commerce) saw growth in the strong twenties. Additionally, General Trade (GT) grew in the high twenties, supported by both urban retail momentum and a strong recovery in rural markets.
International business (IB) witnessed healthy growth on a favourable base (double-digit EBITDA margin) on account of double-digit growth in both Nepal and Bangladesh, partly offset by disruptions in West Asia.
Bajaj Consumer Care Q1FY27
The company’s consolidated net profit jumped 84.5% YoY to Rs 70.7 crore in the first quarter of FY27. Its net sales value on a consolidated basis rose 28.3% YoY to Rs 341.4 crore, while total operating income surged 25% YoY to Rs 341.5 crore.
On the operating front, EBITDA rocketed 101.4% YoY to Rs 84.4 crore in Q1FY27.
Bajaj Consumer Care share price performance
The share price of Bajaj Consumer Care has fallen 10% in the last five trading sessions. The stock has dropped 5% in the past one month. However, the stock has given a return of 100% in the last six months. Bajaj Consumer Care’s share price has raised investors’ wealth by 142% over the previous 12 months.