Bajaj Consumer Care has announced its 'Aarohan 2.0' retail strategy to add 60,000 outlets and 1,000 distributors annually from FY28. Following a strong Q2 performance with profit at ₹70.2 crore, the company aims to reduce its reliance on core hair oil products. However, investors should monitor how rising commodity costs might impact profit margins as the company expands its portfolio.
Bajaj Consumer Care is preparing for a new phase of retail expansion under its 'Aarohan 2.0' initiative. The company plans to scale its reach by adding approximately 60,000 retail outlets and 1,000 distribution partners every year, with the strategy set to commence in the 2028 fiscal year. This announcement comes as the firm nears the conclusion of its previous distribution programme, which successfully added over 100,000 retail outlets and 1,100 distributors across India.
The expansion strategy is backed by a recent improvement in financial performance. In the quarter ended September 2026, Bajaj Consumer reported a consolidated profit of ₹70.2 crore. The company saw its revenue reach ₹332.7 crore, with EBITDA climbing to ₹83.3 crore. A notable highlight was the expansion of operating margins to 25 per cent, significantly higher than the 18.6 per cent margin reported in the same quarter last year. This performance was largely driven by the company's Almond Drops hair oil, which recorded over 30 per cent domestic revenue growth.
Balancing Expansion with Commodity Risks
While the company is scaling up, it faces pressure from rising input costs. Prices for raw materials such as light liquid paraffin, refined mustard oil, and copra remain high. These costs can put significant pressure on profit margins if the company is unable to pass the price increases to consumers. Investors often watch these commodity trends closely in the FMCG sector, as they directly impact the ability of companies to maintain profitability during aggressive expansion phases.
To manage this risk, Bajaj Consumer is actively diversifying its product portfolio. The company is testing new segments such as colour shampoos, lip balms, and premium fragrances. This shift is intended to move the company beyond its heavy reliance on the hair oil category, where it competes with larger peers like Marico and Dabur. By entering these new areas, the company hopes to secure a stronger position in both general trade and organized retail environments.
Modernizing Sales Channels
Beyond traditional distribution, the company is focusing on modern sales channels. Quick-commerce platforms have become a critical growth driver for the firm. The company is actively adjusting its supply chain to ensure that its expanding network remains relevant as consumers increasingly shift toward faster delivery options.
Looking ahead, investors will be monitoring the execution of the Aarohan 2.0 plan, particularly the company's ability to maintain its margin expansion while investing in new product categories. The key monitorables for the next few quarters will include raw material price trends, the performance of the new personal care categories, and whether the company can sustain its volume-led growth in the highly competitive hair oil market.