Bajaj Consumer Care Reports Robust H1 Growth With 75% PAT Surge

Revenue grew 28% to Rs 674 crore for H1 FY27, while PAT rose 75% to Rs 141 crore.

Reader Takeaway: Strong volume growth in core hair oil supports performance; edible oil inflation remains a key margin pressure.

What just happened

Bajaj Consumer Care has released its financial results for the quarter and half-year ended FY27. For Q2, the company reported revenue of Rs 233 crore, representing a 2.7% year-on-year growth. The half-year performance was notably stronger, with revenue at Rs 674 crore (+28% YoY) and EBITDA at Rs 167 crore (+85% YoY). The company maintained a 25% EBITDA margin for the quarter despite input cost headwinds.

Why this matters

The steady performance of the 'Almond Drops' hair oil franchise continues to be the backbone of the company. Management highlighted double-digit unit volume growth, with quick-commerce emerging as the fastest-growing sales channel. The successful execution of 'Project Aarohan'—which added over 1 lakh outlets—has bolstered the company's distribution footprint, providing a solid base for the upcoming 'Aarohan 2.0' expansion.

Pricing and Cost Outlook

To counteract rising edible oil costs and geopolitical volatility, the company plans to implement a 5% price increase in Q3. This will be a combination of a 2-3% direct price hike and adjustments to pack sizes. Management emphasized that this is a strategic move to protect profit margins without significantly hurting consumer demand.

Risks to watch

The primary challenge remains raw material inflation. Gross margins saw a slight sequential dip to 59.9% in Q2. Investors should monitor how consumers respond to the upcoming 5% price hike, as maintaining volume growth while raising prices is a delicate balance. Additionally, the transition to 'Aarohan 2.0' will be a critical execution test for the management team over the next six quarters.

What to track next

The market will look for sustained revenue growth, with management guiding for high-teens growth for the full fiscal year. The ability to manage fixed costs to offset inflationary pressures and the successful rollout of the direct-reach expansion under 'Aarohan 2.0' will be the key indicators of long-term operational health.