Despite reporting its strongest quarterly earnings in recent memory, Bajaj Consumer Care shares crashed 10% in the last five trading sessions, marking the stock's biggest single-day fall since March 2020. The sharp sell-off came after the company reported consolidated net sales of ₹341.4 crore for Q1 FY27, up 28.3% year-on-year, with EBITDA rocketing 101.4% YoY to ₹84.4 crore and profit after tax rising 84.5% to ₹70.7 crore. Gross margins expanded to 61.8% from 56.7% in the year-ago period, demonstrating strong operational performance. The decline was accompanied by trading volumes surging to 1.87 lakh shares, compared with the 20-day average of 39,354 shares, as investors booked profits following the earnings announcement.
ICICI Securities maintained its 'Buy' rating on the stock and raised its target price to ₹760 from ₹600, implying an upside of 15%. The upgrade reflects increased confidence in the company's growth trajectory, with the brokerage upgrading its FY27 and FY28 earnings per share (EPS) estimates by 24% and 28% respectively. This represents a significant shift from previous downgrades, with Choice Institutional Equities having revised its call from BUY to ADD citing the stock's sharp appreciation. The target price raises marginally to ₹715 from ₹690, implying a 9% upside from Monday's close, while The Hindu BusinessLine has revised its rating from 'Buy' to 'Add' citing the stock's sharp appreciation of about 88% since April 2026 and limited upside from current levels.
According to The Financial Express, Bajaj Consumer delivered robust Q1FY27 results with revenue growth led by low-teens volume growth in the flagship Almond Drops (ADHO) brand and continued double-digit sequential traction across the non-ADHO portfolio. The company achieved gross margin expansion YoY on a favourable mix, with EBITDA margins expanding by 939 bps YoY to 24.4% despite elevated brand investments. The flagship Almond Drops Hair Oil brand delivered growth in the 30% range during the quarter, with underlying volume growth remaining in the early teens while sachets and price-point packs continued to outperform. Management has guided for EBITDA margin in the low-to-mid-20s range and aspires to deliver low-to-mid-teens value growth over the medium term, underpinned by productivity gains from the Aarohan (sales project) rollout and portfolio scaling.
As reported by The Financial Express, the sales-focused 'Aarohan' project is transitioning from reach expansion to a focus on productivity and throughput improvement. Markets where Aarohan has been implemented have historically shown 4% higher growth than non-Aarohan markets, and the company expects to complete the rollout in remaining markets by FY27. The Banjara's financial as well as team integration has been completed, with the company broadly on track to meet its revenue target of ₹500 crore (non-ADHO) within three years. Organised trade (modern trade, e-commerce, and quick commerce) saw growth in the strong twenties, while General Trade (GT) grew in the high twenties, supported by both urban retail momentum and a strong recovery in rural markets. The international business witnessed healthy growth on a favourable base (double-digit EBITDA margin) on account of double-digit growth in both Nepal and Bangladesh, partly offset by disruptions in West Asia.
According to ICICI Securities analysis, the brokerage has modeled revenue/EBITDA/PAT CAGR of 16%/33%/34% over FY26-28E respectively, reflecting improved confidence in the company's growth trajectory. The upgraded target price of ₹760 is based on DCF methodology and represents a significant increase from the previous ₹600 target. The revised estimates reflect higher sales growth expectations and better-than-anticipated margin performance, positioning the stock for enhanced returns despite near-term challenges in Q2FY27. The Hindu BusinessLine projects sustained double-digit growth, an improving product mix and operating leverage to drive Revenue/EBITDA/PAT CAGR of 14%/20%/20% respectively over FY26-29E. The stock's sharp rally of nearly 150% in 2026 and about 190% over the past year has prompted investors to focus on whether the company can sustain this growth momentum amid a higher base and elevated valuations estimated at around 35 times its FY27 earnings.
