• First time crossed INR 1,000 crores milestone with full year revenue of INR 1,153 crores at 21% growth
• Gross margin improved significantly to 63% in Q4 and 60% for full year, representing 650 basis points improvement YoY
• Core brand ADHO delivered stupendous performance with revenue growth in the 20s for full year, near double-digit volume growth on adjusted ML basis in Q4, and mid-single digit absolute volume growth
• General Trade channel showed strong recovery with high-teens growth, with urban channels (retail and wholesale) growing nearly 20% and rural in mid-teens
• Organized Trade contributed 30% of overall sales, growing at 20%+ YoY with strong performance in modern trade and e-commerce
• Non-ADHO growth portfolio reached INR 225 crores with target to scale to INR 500 crores over next 3 years
• Project RO1 distribution expansion delivered 2-3% growth delta in covered states, with Phase 3 launching in 5 new states in FY27
• Bangladesh international business reached breakeven with margin improvement in Nepal, though overall international business remained challenging

Bajaj Consumer delivered exceptional Q4 FY26 results with 28% standalone revenue growth to INR 308 crores and EBITDA margin expansion to 25%, crossing INR 1,000 crores in annual revenue for the first time. Management demonstrated strong confidence in sustaining margins in the low-to-mid 20s range despite significant input cost inflation from Gulf war impact, citing strategic pricing actions, mix improvements, and successful Project RO1 distribution expansion delivering 2-3% growth delta.

Bajaj Consumer reported strong Q4 FY26 performance with standalone revenue of INR 308 crores (28% YoY growth) and consolidated revenue of INR 327 crores (32% YoY growth). Full year standalone revenue reached INR 1,153 crores, marking 21% growth and crossing the INR 1,000 crore milestone for the first time. Gross margin expanded dramatically to 63% in Q4 (60% for full year), representing approximately 650 basis points improvement YoY driven by strategic pricing, revenue management, and mix optimization. EBITDA on standalone basis surged 131% to INR 78 crores in Q4 with margin of 25% (consolidated EBITDA of INR 77 crores at 23.7% margin). Full year EBITDA reached INR 224 crores at 19.5% margin. Standalone PAT for Q4 was INR 64.1 crores with 20.8% margin (consolidated PAT of INR 63.6 crores at 19.5% margin), while full year PAT stood at INR 190 crores at 16.5% margin. Advertising expenses increased 34% YoY in Q4, reflecting continued brand investment. The company maintains lean distributor inventory levels with no channel filling, and approximately 70% of business comes from General Trade (split equally between urban and rural).

Management displayed strong confidence and strategic clarity throughout the call. MD Naveen Pande emphasized this was a 'year of turnaround' that establishes the foundation for future growth, highlighting the company's success in fixing profitability from 'one of the lowest levels in a decade' to sustainable mid-20s EBITDA margins. Key strategic priorities articulated include: (1) maintaining aggressive advertising investment at current 15% of revenue levels to support brand building, (2) accelerating distribution expansion through Project RO1's third phase covering 5 new states, (3) diversifying beyond ADHO to build a INR 500 crore growth portfolio over 3 years through brands like Coconut and Banjara's plus new launches, and (4) gaining market share across all channels and geographies from current sub-10% position. Management was particularly confident about margin sustainability despite input cost volatility, citing inventory positions covering a 'good portion of the quarter' and willingness to take pricing actions. The tone was optimistic yet pragmatic, acknowledging the hyperinflationary environment while expressing confidence in navigating it through a combination of pricing, MLH optimization, and cost management. Management repeatedly emphasized focus on brand building, execution excellence, and capability building as drivers for the 'next road of growth.'

The company faces significant near-term headwinds from hyperinflation in input costs driven by the Gulf war, with management noting that 'nearly 100% of our cost base is under inflation' including LLP, packaging materials, mustard, copra, and almond oil. LLP and packaging prices are peaking, and expected price cooling in mustard and copra has been delayed due to the war. This volatile environment has forced the company to take pricing actions in Q1 FY27 and optimize MLH (Maximum Retail Price to Lower Headline Price ratio), with management acknowledging they are monitoring the situation 'on a nearly daily basis' and may need to further fine-tune actions if hyperinflation continues beyond Q1. The international business remains challenging, declining in Q4 with only Nepal and Bangladesh showing growth, though new leadership has been appointed to fix MENA and rest-of-world markets. CSD (Canteen Stores Department) channel performed poorly within Organized Trade. The company faces the structural challenge of operating in a mature category (hair oil) with high penetration (92%) where growth is primarily share-gain driven. As Project RO1 enters its third year, there are concerns about overlapping high growth bases within 2 quarters and potential tapering of benefits, though management expressed confidence in the 2-3% delta holding. The company is also in early stages of diversifying beyond ADHO, which still represents the vast majority of revenue, creating execution risk around scaling the growth portfolio to INR 500 crores.

Revenue Outlook: No specific numerical guidance provided. Management targets non-ADHO growth portfolio to reach INR 500 crores over next 3 years (from current INR 225 crores), implying ~30% CAGR. ADHO expected to deliver double-digit revenue CAGR over medium term. Project RO1 Phase 3 expansion into 5 new states expected to contribute through FY27.

Margin Outlook: Management aspires to maintain EBITDA margins in the 'low-to-mid 20s' range despite input cost inflation. Confident about sustaining margins 'in the current approximate range' but acknowledges need for dynamic adjustments based on evolving commodity situation. Advertising to be maintained at ~15% of revenue for brand building.

Key Targets:

• Scale non-ADHO growth portfolio from INR 225 crores to INR 500 crores over next 3 years
• Gain market share across all channels and geographies from current sub-10% position
• Expand Project RO1 to 5 new states in FY27 (covering final one-third of business)
• Turn around international business (MENA and rest-of-world) under new leadership
• Launch new products in FY27 to supplement growth portfolio

The Q&A session revealed analysts were primarily focused on three areas: (1) margin sustainability given severe input cost inflation from the Gulf war, (2) understanding the drivers of dramatic Q4 margin expansion to 25% from 18.5% in Q3, and (3) the growth outlook for both ADHO and the diversification portfolio. Multiple analysts probed the volume vs. price/mix breakdown of growth, with management clarifying that Q4 absolute volumes grew only mid-single digits while ML-adjusted volumes were near double-digit, indicating mix improvement was a key margin driver. There was significant interest in Project RO1's sustainability as it enters year 3, with management confidently citing 2-3% validated delta and expansion into 5 new states. Analysts expressed concern about the hyperinflationary environment, questioning how the company achieved 650 bps gross margin expansion and 3% QoQ COGS decline despite commodity pressures - management attributed this to favorable inventory positions and timing (MLH adjustments before war impact). The diversification strategy garnered attention, with management providing clear roadmap to scale non-ADHO portfolio from INR 225 crores to INR 500 crores through Banjara's, Coconut, and new launches. Overall, management's tone was confident and specific in responses, though they repeatedly declined to provide numerical guidance citing extreme volatility. The call reflected strong analyst confidence in the turnaround story but caution about near-term margin pressures from commodities.