Bajaj Consumer Q1 Review — Dolat Capital Maintains ‘Reduce’ Despite Margin Upside

Bajaj Consumer has completed the acquisition of Vishal Personal Care Ltd., a strategic move to diversify and strengthen product portfolio. The acquired entity posted Rs 155 million revenue in Q1 with positive, albeit modest, operating margins.

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Dolat Capital Report

Dolat Capital has retained its 'Reduce' stance on Bajaj Consumer Care while increasing the target price from Rs 181 to Rs 230, on the back of gradual improvement in profitability and valuation rollover to FY27 estimates. However, fundamental concerns around topline growth and intense competition in the premium hair oil sector persist.

Almond Drops Hair Oil, Bajaj Consumer's mainstay brand, recorded flat volumes in Q1 FY26, with growth primarily driven by a significant rise in sachet sales, even as mid and large-sized pack sales remained tepid. This reflects weak structural demand in premium price points.

Despite subdued revenue, Bajaj Consumer delivered a 120bps improvement in Ebitda margin (16.7%) due to a favorable product mix, reduced raw material costs, and trade rationalisation—offsetting heightened investments in Project Aarohan.

 Risks remain elevated in discretionary demand and competitive intensity.

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