Bajaj Consumer Q1 FY27 Results (NSE: BAJAJCON)
Signal: Margin expansion
The read
Bajaj Consumer delivered a sharp earnings beat in Q1FY27 with revenue up 25% YoY and PAT surging 85%, driven by a massive gross margin expansion (~900bps) as raw material costs fell and operating leverage improved — a clear inflection from low-margin base. The scheme of arrangement with Vishal Personal Care (effective 1 May 2026) adds scale without segment complexity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹341.57 Cr | 24.95% | 4.56% |
| Net profit | ₹70.75 Cr | 84.82% | |
| EPS | ₹5.42 | ||
| EBIT margin | 25.55% |
P&L walk
Revenue growth of 25% YoY driven by strong volume/mix; gross margin expanded ~900bps YoY as raw material costs fell sharply (cost of materials consumed down from ₹9,324 lakh to ₹4,800 lakh). EBITDA margin jumped 435bps YoY to 25.55% on operating leverage and lower employee cost. PAT surged 85% YoY, outpacing operating profit growth due to higher other income and lower base.
Key positives
- Revenue grew 25% YoY to ₹34,157 lakh, led by strong volume growth in sale of goods (up 28.3% YoY).
- Gross margin expanded ~900bps YoY as cost of materials consumed more than halved from ₹9,324 lakh to ₹4,800 lakh.
- PAT surged 85% YoY to ₹7,075 lakh, with EBITDA margin at 25.55% (+435bps YoY).
- EPS grew 94% YoY to ₹5.42, aided by a reduced share count after the scheme of arrangement.
Key concerns
- Depreciation jumped 54% YoY to ₹382 lakh, signaling elevated capex in prior quarters that could pressure margins if growth normalises.
- A&P expenses rose 29% YoY to ₹5,001 lakh, outpacing revenue growth; sustainability of such spend needs monitoring.
- Surge in material cost deflation may be temporary; management commentary on input cost outlook is absent.
Research and educational content only. Not investment advice.