Bajaj Consumer Care Shines in Q2 FY26: A Deep Dive into Growth and Strategy

Bajaj Consumer Care Limited has reported a robust performance for the second quarter of Fiscal Year 2026, demonstrating significant growth across key financial metrics. The company's consolidated net sales value surged by 13.3% year-on-year to INR 261.4 crore, signaling a strong recovery and effective strategic execution. This impressive top-line growth was complemented by substantial improvements in profitability, with consolidated EBITDA escalating by 44.9% and Profit After Tax (PAT) increasing by 32.8%. The gross margin also saw a healthy expansion of 690 basis points, reflecting the positive impact of strategic pricing, portfolio mix adjustments, and productivity enhancements.

The company's flagship Almond Drops Hair Oil (ADHO) franchise was a primary driver of this growth, achieving double-digit value growth in the domestic market. This performance was bolstered by the full effect of pricing changes implemented in Q1, along with successful initiatives in mix management and revenue optimization. The revival of price point packs, growing in high single digits, and even faster growth in larger packs, indicates broad-based demand. Bajaj Consumer Care also reported a strong recovery in its general trade channel, which grew by 5% year-on-year, propelled by double-digit growth in urban areas. Organized trade, including modern trade and e-commerce, also witnessed strong double-digit growth, contributing significantly to the overall sales momentum.

Strategic Initiatives Driving Future Growth

Bajaj Consumer Care is actively pursuing several strategic initiatives to sustain its growth trajectory. Project Aarohan, a comprehensive Go-to-Market transformation journey, is focused on expanding direct distribution across urban and rural markets. This initiative has already resulted in the addition of over 38,000 direct coverage outlets and is showing positive results in urban and wholesale channels. While rural markets are still a work in progress, management anticipates a full bounce-back in the coming quarters, with an aim to improve overall distribution by 8-10% annually over the next 3-4 years.

Another significant development was the government's GST rate reduction, which the company proactively passed on to consumers. This involved price drops and volume additions for various SKUs, a move expected to significantly boost demand and consumption in the upcoming quarters. To address the evolving consumer preferences in the coconut oil segment, Bajaj Consumer Care swiftly launched Bajaj Gold Enriched Coconut Hair Oil in September/October. This launch, noted as one of the fastest by the team, aims to provide a portfolio approach to the coconut oil business and manage profitability amidst rising copra prices.

Digital Engagement and Market Dynamics

The company's commitment to digital innovation was highlighted by the successful Hair Quality Index (HQI) campaign for Bajaj Almond Drops. This AI-powered initiative, which used live weather APIs to assess hair health, garnered over 3.5 million unique users and 14.5 million impressions, leading to a 9% increment in Add-to-Cart and a 3% lift in purchases. This demonstrates the company's ability to leverage technology for effective consumer engagement and sales conversion.

Despite the overall positive performance, Bajaj Consumer Care faced some headwinds. The international business experienced a 26% decline in revenue due to internal distributor transitions and external market challenges. Sales in CSD (Canteen Stores Department) and CPC (Central Police Canteen) channels also saw a steep decline in September due to GST transition. Additionally, the Nepal market faced a temporary setback from political instability. The pure coconut oil category witnessed a short-term market share decline as consumers shifted towards value-added coconut oils, prompting the strategic launch of Bajaj Gold Enriched Coconut Hair Oil.

Outlook and Management Confidence

Looking ahead, Bajaj Consumer Care remains committed to achieving double-digit revenue growth and operating at category-level EBITDA margins in the medium to long term. The integration of Banjara's, acquired earlier, is progressing well, with full benefits expected to materialize in the next financial year. Management's proactive approach to market shifts, disciplined capital allocation, and focus on innovation underscore its confidence in sustained long-term growth. The company's ability to adapt to regulatory changes, respond to consumer trends, and leverage digital platforms positions it favorably for continued success in the competitive FMCG landscape.