Bajaj Consumer Q3 Profit Soars 83%, Stock Hits 52-Week High

Introduction

Bajaj Consumer Care Ltd. witnessed a significant surge in its stock price, hitting a 20% upper circuit and a new 52-week high, following the announcement of its strong financial results for the third quarter of fiscal year 2026. The Fast-Moving Consumer Goods (FMCG) company reported a remarkable 83% year-on-year increase in consolidated net profit, driven by robust revenue growth and expanding margins. This performance has captured the attention of investors and analysts, leading to multiple upward revisions in the stock's target price.

Stellar Quarterly Performance

The company's financial report for the quarter ending December 31, 2025, showcased broad-based strength. Consolidated net profit jumped to ₹46.37 crore from ₹25.31 crore in the same period last year. Revenue from operations also saw a substantial increase of 30.57%, reaching ₹306.09 crore compared to ₹234.4 crore in Q3 FY25. This top-line growth indicates a healthy recovery in consumer demand across its product portfolio and distribution networks.

Key Growth Drivers

The strong performance was attributed to several factors, signaling an operational turnaround. A key highlight was the revival in the low unit pack (LUP) segment, particularly sachets, which often points to a recovery in rural and semi-urban consumption. The company's flagship brand, Almond Drops Hair Oil (ADHO), was a primary contributor, recording double-digit volume growth. The non-ADHO portfolio also performed well, registering mid-single-digit growth, while the Bajaj Coconut portfolio posted high single-digit value growth, demonstrating strength across its product lines.

Operational Efficiency and Margin Expansion

Bajaj Consumer Care demonstrated impressive operational leverage during the quarter. While revenue grew by over 30%, total expenses increased by a more moderate 20.9% to ₹254.95 crore. This disciplined cost management led to a significant expansion in profitability. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled to ₹56.08 crore. Consequently, the EBITDA margin expanded dramatically by 710 basis points to 18.3%, a clear indicator of improved efficiency and a favorable product mix.

Brokerages Turn Bullish

The robust earnings report prompted several brokerage firms to reiterate their positive stance on the stock, with many upgrading their target prices. The consensus among analysts is that the company's improved execution, coupled with a recovery in consumer demand, provides strong visibility for future growth.

ICICI Securities highlighted an 82% potential upside, citing benefits from GST transitions, sharper distribution, and improving channel productivity. Analysts believe the margin expansion is sustainable, supported by the company's strategic shift towards enhancing productivity and earnings quality.

Strategic Initiatives and Management Outlook

The company's strategic initiatives, particularly 'Project Aarohan' aimed at expanding its general trade coverage and rural distribution, are yielding positive results. With the first phase of reach expansion largely complete, the focus has shifted to maximizing productivity from this wider network. Management has expressed a positive outlook, citing easing inflation, supportive government policies, and a strong agricultural forecast as tailwinds that could further boost consumption growth.

Market Reaction and Stock Performance

Investors responded enthusiastically to the strong quarterly numbers. On Friday, January 23, 2026, Bajaj Consumer Care shares touched the 20% upper circuit before closing at a new 52-week high of ₹305.80. The trading volume was significantly higher than its daily average, indicating strong buying interest. The stock has delivered impressive returns over the past year, gaining approximately 60%, significantly outperforming the benchmark indices.

Conclusion

Bajaj Consumer Care's exceptional third-quarter performance underscores a successful operational turnaround. The combination of strong revenue growth, a sharp increase in profitability, and significant margin expansion reflects the effectiveness of its strategic initiatives. The positive reaction from the market and bullish calls from analysts reinforce confidence in the company's growth trajectory under its current leadership, setting a positive tone for the upcoming quarters.