• Q1 financial performance: Bajaj Consumer posted 25% year-on-year revenue growth, driven 60% by volumes and 40% by pricing and mix, alongside a 110% surge in EBITDA with margins expanding from 15% to 25%.
• Raw material pressures: Elevated costs for key inputs like light liquid paraffin (LLP), vegetable oils, and PET packaging drove a 190 basis point sequential gross margin contraction, countered by disciplined fixed-cost management.
• Pricing outlook: The company implemented a calibrated direct price hike of around 5% in Q1 to safeguard profitability, and management is in a wait-and-watch mode before considering further price increases if commodity inflation persists.
• Product portfolio trends: The flagship Almond Drops Hair Oil accounted for 80–85% of the sales mix with low-teens unit growth, while the non-almond growth portfolio turned profitable and achieved high single-digit sequential revenue growth despite price cuts in coconut oil.
• Rural demand performance: The rural portfolio witnessed strong growth in Q1, with management noting that macro-level inflationary pressures have not yet translated into observable demand stress.