Bajaj Consumer Q2 FY27 Results (NSE: BAJAJCON)
Signal: Margin expansion
The read
The key inflection is a fifth consecutive quarter of operating-margin expansion: consolidated EBITDA margin reached 27.3%, up 634bps YoY and 57bps QoQ, while revenue growth remained elevated at 25.5% YoY; the improvement is supported by operating leverage rather than a gross-margin tailwind, as gross margin was down 40bps YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹332.83 Cr | +25.5% | -2.6% |
| EBIT | ₹87.08 Cr | +67.9% | |
| Net profit | ₹70.15 Cr | +65.9% | |
| EPS | ₹5.37 | +65.7% | |
| EBIT margin | 27.3% |
P&L walk
Revenue grew 25.5% YoY despite a 2.6% QoQ decline, while EBITDA rose 63.3% YoY and margin expanded 634bps to 27.3% as employee costs grew only 0.3% and depreciation 0.7%; PAT rose 65.9% to ₹7,015.06 lakh.
Segments
The group operates in one reportable segment; consolidated PAT of ₹7,015.06 lakh was ₹37.77 lakh below standalone PAT of ₹7,052.83 lakh, indicating a modest subsidiary drag rather than a material change in the operating business.
Key positives
- Revenue from operations reached ₹33,283.21 lakh, up 25.5% YoY, with the growth rate remaining ahead of the 11.0% YoY increase in Q1FY26 and 13.3% in Q2FY26 from the prior results series.
- EBITDA rose 63.3% YoY to ₹9,093.98 lakh versus revenue growth of 25.5%, a 37.8 percentage-point gap; employee costs grew 0.3%, depreciation 0.7% and finance costs declined 25.4%, supporting genuine operating leverage.
- EBITDA margin expanded 634bps YoY to 27.3%, extending the margin-expansion sequence to the fifth consecutive quarter.
- Advertising and sales promotion increased 7.1% YoY to ₹4,165.13 lakh, but advertising intensity declined to 12.5% of revenue from 14.7%, indicating better operating absorption.
Key concerns
- Gross margin declined 40bps YoY to 59.9%, so the margin expansion was not driven by a disclosed gross-margin tailwind; sustainability depends on continued operating-cost discipline.
- Consolidated PAT of ₹7,015.06 lakh was ₹37.77 lakh below standalone PAT of ₹7,052.83 lakh, reflecting a modest drag from subsidiaries.
- Trade receivables increased to ₹9,609.71 lakh from ₹7,562.45 lakh at March 31, 2026, while the filing does not disclose receivable days.
Research and educational content only. Not investment advice.