Bajaj Consumer Q2 FY27 slides: strong growth amid margin pressure

Bajaj Consumer Care Limited disclosed its Q2 standalone results on October 15, 2026, demonstrating robust revenue growth and significant profitability improvements. However, investor sentiment turned cautious, with shares plummeting 8.6% to $475.35 post-announcement, subsequently slipping to $472.25, a 9.19% decline from the previous close of $520.05.

The company's Q2 reported a 27.3% year-over-year revenue increase, reaching INR 332.7 crores, accompanied by a 59.9% gross margin expansion to INR 199.2 crores. More striking was the 71% surge in EBITDA to INR 83.3 crores, translating to a 25.0% margin. Profit after tax also surged 66% to INR 70.2 crores, equating to a 21.1% margin.

For the first half of fiscal 2027, the momentum continued, with revenue climbing 27.8% YoY to INR 674.1 crores, EBITDA reaching INR 167.6 crores with an 85% YoY increase, and profit after tax soaring 74.8% to INR 140.9 crores.

This performance trajectory is evident in the company's comprehensive analysis, showing sales growth from INR 242 crores in Q1 FY25 to INR 333 crores in Q2 FY27, and EBITDA margins expanding from 16% to 25% over the same period.

The presentation cited ADHO Hair Oil as the key growth driver, with domestic sales surging by over 30% in both quarters. The growth was attributed to double-digit unit volume expansion rather than price hikes, with price point packs being a critical growth catalyst.

The company introduced a new integrated marketing campaign emphasizing beauty through stronger hair, complemented by the launch of new products and strategic adjustments like brand revamps in its Growth Portfolio. Despite challenges from raw material inflation, specifically Light Liquid Paraffin (52% increase) and Refined Mustard Oil (55% increase), the company remains optimistic about sustaining its growth momentum through its Project Aarohan initiative.