Bajaj Consumer Care Limited Q3 FY26 Earnings Call Summary

Summary

Bajaj Consumer Care Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 21, 2026, 4:00 PM IST

Event Participants

Executives 3 Aakash Gupta (Head, Finance), Dilip Kumar Maloo (CFO), Naveen Pandey (Managing Director)

Analysts 7 Abhijeet Kundu (Antique Stockbroking), Abneesh Roy (Nuvama), Amit Purohit (Elara Capital), Deepak (Unifi Capital), Harsh Shah (Bandhan AMC), Mihir Shah (Nomura), Percy (IIFL), Rehan Saiyyed (Trinetra Asset Managers)

Financials & KPIs

Geographic & Segment Commentary

• General Trade (GT): Grew in line with the company (27-30%) with a strong revival in rural business during Q3. While rural performance improved, it remains relatively weaker compared to urban growth, which saw traction in both direct retail and wholesale.
• Organized Trade: Continued strong double-digit growth driven by Modern Trade and E-commerce. However, CSD (Canteen Stores Department) and CPC channels remained muted during the quarter.
• International Business: Declined mid-single digits YoY due to structural challenges in GCC and Africa. Nepal saw a revival post-geopolitical issues, and Bangladesh achieved operational breakeven following a model correction.
• Banjara’s (Vishal Personal Care): Registered a strong 15% YoY growth with stable mid-teen operating margins. Integration is complete in two southern states, with the remaining southern states expected to finish integration by Q4 FY26.

Company-Specific & Strategic Commentary

• Aarohan Project: Expanded direct reach to 6 lakh outlets, achieving the annual target of 10% addition to direct coverage ahead of schedule.
• ADHO Focus: Almond Drop Hair Oil delivered double-digit volume growth; management reinvested margin gains into digital and high-frequency advertising to target new-age audiences.
• Coconut Oil Correction: Bajaj Coconut grew in mid-single digits as the company reduced discount gaps relative to the market leader to achieve sustainable margins.
• Product Innovation: Launched “Bajaj Gold Enriched Coconut Hair Oil” to capture premium segments; additional calibrated innovations are planned over the next 2-3 quarters.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Growth Sustainability

• Question: Is the current growth sustainable or a result of GST transition/pipeline filling? (Abneesh Roy)
• Answer: Impact of pipeline filling was only ₹5-7 crores in Q2; Q3 growth is structurally driven by distribution and brand salience. The company aims to sustain a significantly higher growth level than historical averages (Naveen Pandey).

Coconut Oil Strategy

• Question: Why is Bajaj Coconut growing slower than the market leader? (Mihir Shah)
• Answer: A conscious decision was made to reduce price discounting against the leader to ensure profitability. The volume impact from this price correction is now mostly settled (Naveen Pandey).

Portfolio Optimization

• Question: Will you rationalize the “problem of plenty” in small tail-end SKUs? (Percy)
• Answer: Heavy lifting on ADHO and Coconut is done. Over the next 2-3 quarters, more clarity will emerge on phasing out or focusing on the remaining 7-8 tail categories (Naveen Pandey).

Advertising Strategy

• Question: Have you increased the percentage spend on advertising? (Naitik)
• Answer: Yes, absolute spend is up 37% YoY, representing a 100 bps increase in the A&P-to-sales ratio. Focus has shifted heavily toward digital platforms to reach younger demographics (Naveen Pandey).

Key Takeaway

Bajaj Consumer Care delivered a standout Q3 FY26, with consolidated revenue growing 32.7% and standalone EBITDA nearly doubling YoY. The performance was headlined by the flagship Almond Drop Hair Oil (ADHO), which saw double-digit volume growth fueled by a 37% increase in A&P spending and a successful expansion of the “Aarohan” direct distribution reach to 6 lakh outlets. While the international business remains a drag and the coconut portfolio underwent a margin-focused price correction, the domestic general trade recovery—particularly in urban and wholesale—provided significant tailwinds. Gross margins expanded by 800 bps to 59.8% due to favorable mix and pricing management. Looking ahead, management remains committed to a 10% annual increase in direct coverage and a “brand-led” rather than “price-led” growth strategy for its secondary portfolio. The company appears positioned to sustain double-digit growth, provided it successfully navigates international GTM transitions and maintains its newfound rural momentum.