Bajaj Consumer Care has received BUY Call from research house ICICI Securities. As per the research report, FMCG major Bajaj Consumer is poised on a momentum-driven trajectory, supported by robust execution and strengthened rural and distribution channels despite GST-related disruptions. ICICI Securities reiterates a BUY call on the stock, setting a target price at Rs 400 from the current market price near Rs 296, projecting a compelling upside potential of over 35%. The company's Q2FY26 results showcased double-digit value growth in its key Ayurvedic and hair oil (ADHO) segment, along with resilient performance from its coconut oil and emerging brand portfolio. Margins expanded sharply owing to pricing power, mix optimization, and operational discipline. With further growth catalysts from the Aarohan rural rollout and integration of VPCL acquisition, Bajaj Consumer Care presents a favorable risk-reward profile for investors with targeted price levels and clear earnings upgrades ahead.

ICICI Securities Maintains BUY Rating with Rs 400 Target

ICICI Securities, a leading investment research house, has maintained its BUY recommendation on Bajaj Consumer Care, reflecting strong confidence in the company’s strategic execution and financial trajectory. The target price of Rs 400 implies a significant appreciation from the current market price of approximately Rs 296, corresponding to a price-earnings (PE) multiple of 28x on FY27 estimated earnings per share (EPS). Earnings upgrades for FY26 and FY27 have been revised upward by 7-8%, forecasting a robust revenue, EBITDA, and PAT compound annual growth rate (CAGR) over FY25-28 at 11%, 22%, and 18% respectively.

Q2FY26 Results Highlight Strong Volume and Margin Traction

Bajaj Consumer Care delivered a standout performance in Q2FY26, with consolidated revenues rising 13.3% year-on-year to Rs 2.6 billion, supported by 1% volume growth and a 6% price hike implemented in Q1. The Ayurvedic & Hair Oils (ADHO) segment sustained mid-single-digit value growth, underpinned by flat volume and strength in non-price-point packs boosted by raw material and channel strategies. The company’s premium brand, Bajaj 100 Pure Coconut Oil, grew in low-single digits with stable market share, while the digital-forward portfolio surged in high teens, marking a revival. Organized trade, including modern trade and e-commerce, grew notably by 25%. General trade showed mid-single-digit growth driven by urban and wholesaler recovery.
Operating margins improved markedly, with gross margin expanding by nearly 700 basis points YoY to 61.1%, fuelled by pricing actions, favourable product mix, and prior price hikes. EBITDA rose 46.5% YoY to Rs 478 million, translating to an EBITDA margin expansion of over 400 basis points to 18.3%. Despite elevated brand investments and staff costs, profit after tax (PAT) increased 33% YoY to Rs 423 million. The company effectively offset inflationary pressures through disciplined execution and pricing agility.

Aarohan Rollout and VPCL Integration to Bolster Growth

The strategic rollout of the Aarohan initiative continues on pace, enhancing general trade coverage and rural distribution, which is a critical growth engine for Bajaj Consumer Care. Early indicators suggest an uptick in wholesale throughput and a stabilization of rural demand, which had faced softness due to GST-related elasticity. Integration of VPCL is progressing smoothly, positioning the company to capitalize on synergies in distribution and product outreach.
Management remains focused on scaling the ADHO segment, deepening market penetration, and leveraging the GST-driven affordability gains to stimulate sustained volume growth. This positions Bajaj Consumer Care to maintain volume momentum and margin enhancement in the second half of FY26 and beyond.

Financial Outlook and Growth Estimates

ICICI Securities projects Bajaj Consumer Care’s revenue to grow steadily from Rs 9,428 million in FY25 to Rs 12,899 million by FY28. EBITDA margins are expected to expand further, from 14% in FY25 to nearly 19% by FY28, reflecting operational leverage and efficiency gains. Net profit is forecasted to reach Rs 2,159 million by FY28, up from Rs 1,301 million in FY25, driven by sustained margin expansion and controlled costs. EPS is estimated to increase from Rs 9.1 in FY25 to Rs 15.1 in FY28, supporting the bullish valuation stance.
The company boasts a strong balance sheet with increasing net worth and healthy cash flow generation, enabling ongoing investments in brand and distribution while maintaining capital discipline. Key financial ratios such as RoCE and RoE are anticipated to strengthen, reaching above 18% and 21% respectively by FY28, underscoring the quality of earnings growth.

Key Risks and Sensitivities

Investors should remain vigilant regarding certain downside risks that could disrupt the bullish outlook. These include an overdependence on the ADHO segment for sales growth, potential commodity cost inflation exceeding expectations, and the risk of underperformance or failure of new product launches. Additionally, any prolonged GST-related disruptions or adverse rural demand shocks could impact volume growth. However, the company’s strong execution track record and channel expansion efforts mitigate some of these risks.

Precise Stock Trading Levels for Investors

ICICI Securities suggests investors consider the following actionable levels based on current technical and fundamental analysis:

Investors are encouraged to accumulate shares on any weakness toward Rs 275, with a view to riding the upward momentum to the Rs 400 target price, which presents a potential upside of about 35%. Resistance around Rs 310-320 will be a critical short-term zone, with a breakout above this range signaling further bullish traction.

Final Perspective

Bajaj Consumer Care emerges as a compelling buy opportunity in the consumer staples space, fortified by accelerating revenue growth, margin improvement, and strategic rural expansion through Aarohan and VPCL synergies. ICICI Securities’ reiteration of the BUY call at Rs 400 reflects confidence in sustainable earnings growth, strong free cash flow generation, and multiple expansion potential. The stock is well positioned to capitalize on evolving consumer trends in Ayurvedic and hair care segments amid a recovering general trade environment.