During the past year, the FMCG sector witnessed a significant slowdown, dragging the Nifty FMCG Index down by over 11%(as of 21 April 2026).

Even GST 2.0, which reduced taxes on many goods and services, couldn’t help the FMCG sector, owing to muted demand, higher raw material costs, and other factors.

Having said that, there has been one outlier in the sector. This FMCG stock gained a whopping 170.8% during the same period.

And the stock is Bajaj Consumer Care Limited.

During Q4FY26, Foreign institutional investors (FIIs) also significantly increased their stake by 6.89% points, taking the total holding to 16.59% at the end of the quarter.

In this article, we will try to explore what Bajaj Consumer Care is doing differently to gain such momentum in the stock market.

Let’s begin.

Bajaj Consumer Care Ltd.: ADHO’s Strong Run Continues

Bajaj Consumer Care offers an array of cosmetics, toiletries, and personal care and wellness products. However, Almond Drops Hair Oil (ADHO) is the flagship product that drives most of the revenue for the company.

During FY26, revenue from ADHO grew by more than 20%. Sales volume also increased in double digits during the January-March quarter.

Apart from ADHO, Bajaj offers different ayurvedic products such as Bramhi Amla oils, Alma Aloe Vera products, Coco Onion, pure coconut oil, and others.

Bajaj also offers a wide range of skin care products, amongst which the ‘Nomarks’ range is a prominent brand.

Bajaj has Natyv Soul as one of its premium brands, which offers Argan Oil products made from exotic ingredients sourced globally, then serums, masks, and other related products.

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Growth Portfolio’s Positive Contribution

Bajaj segregates all the products apart from ADHO as the Growth Portfolio. This portfolio has contributed around ₹225 crore to the revenue of the company during FY26.

The management commented that the contribution from this portfolio has already been positive and profitable during the fiscal.

Furthermore, the management stated that they are planning to grow this portfolio to a ₹500 crore one by the next three years, growing at around 30% Compound Annual Growth Rate (CAGR).

Two key brands that are expected to drive this growth are Bajaj Coconut and Bajaj Banjara’s.

Bajaj is also scaling up some of the existing brands as well as exploring and introducing new brands, which are scheduled to be launched during FY27.

Banjara’s: Bajaj’s Strategic Move to Grow in South India

Bajaj acquired Vishal Personal Care Pvt. Ltd., the owner of the Banjara’s brand, at the beginning of 2025. This strategic acquisition was aimed at increasing their market share in South India, as Banjara’s holds a significant market share in the region.

During FY26, Banjara’s delivered a double-digit revenue growth in the first year of its acquisition itself. However, as per the management, this segment is still under the ₹100 crore revenue bracket.

The management also commented that Banjara’s will be a profitable business segment once the business scales.The plan is to scale it up to a ₹200 crore business segment.

Project Aarohan Enters Phase 3

Bajaj Consumer Care introduced Project Aarohan for transforming its distribution network. It is a multi-phase route-to-market (RTM) transformation project aimed at increasing networks across both rural and urban areas.

During Q4FY26, the project entered its 3rd phase, within which transformation plans were designed for states like Bihar, Gujarat, Jharkhand, Odisha, and Punjab.

In four states, implementation also started, which include Bihar, Jharkhand, Odisha, and Punjab.

In the earlier phases, the project covered states like Rajasthan, Haryana, Chhattisgarh, Delhi, Maharashtra, and West Bengal.

The objective of this project is to increase the direct reach of the company to high-potential towns and villages, which can, in turn, boost the sales for the company.

As per management, the states where Project  Aarohan has already been implemented witnessed 2% to 3% increase in the sales volume.

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Key Raw Material Prices Favouring the Business

While raw material prices have been a pain point for most of the industry players, Bajaj Consumer has an edge over others.

One of its key raw materials – Light Liquid Paraffin (LLP) prices jumped significantly during Q4FY26 compared to Q3FY26; however, Bajaj’s inventory position saved the company from losing out on its profit margin.

On the other hand, refined mustard oil prices decreased marginally by 1% during the quarter (QoQ); however, it was expected to decrease further.

Coming to copra prices, one of the main ingredients used for coconut oil production, witnessed a massive decline of around 16% during the quarter.

Financials & Returns

Sales grew by 20.7% YoY during FY26 to ₹1,165 crore from ₹965 crore in FY25. Net profit for the period surged from ₹125 crore to ₹190, logging a whopping 53% YoY growth.

Earnings per share (EPS) jumped from ₹9.14 per share to ₹14.6 per share during the period.

Bajaj Consumer is also offering one of the highest returns on capital employed (ROCE) in the FMCG sector. While the industry median is 20.24%, the company has a ROCE of 30.6%.

However, during FY26, the company paid no dividend to its shareholders, and the dividend yield dropped to 0% while the industry median is 0.14%.

Is the stock of price of Bajaj Consumer still Cheap?

Even after rallying up 170.8% in the past year, the stock is still trading at a price/earnings (PE) of 31.6x, cheaper compared to the industry median of 43.2x.

However, the price/earnings to growth (PEG) ratio is 2.8x, higher than the industry median of 2.2x, indicating the stock is trading at a premium.

1-Year Share Price Chart of Bajaj Consumer Care Ltd.

Final Thoughts

Thus, Bajaj Consumer’s share price rally has not been just driven by investor sentiment. It is backed by the dominance of its flagship product – ADHO, a growing market for its growth portfolio, especially for the coconut oils and Banjara’s product range.

On the other hand, Project Aarohan is transforming the entire distribution network, driving sales up, and reducing raw material costs, helping the profit margins expand.

Having said that, the current market scenario, rising fuel prices, and uncertainty might pose challenges for the FMCG giant, and thus, it may be a good idea to add this stock to your watchlist to keep an eye on its performance. 

We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information. 

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only. 

Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible. 

Disclosure: The writer and her dependents do not hold the stocks discussed in this article. 

The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.