Bajaj Consumer Care Raises Ad Spend 28.5% as Q1 Profit Jumps 85%
Bajaj Consumer Care increased advertising spend by 28.5% in Q1 FY27 as revenue and profit surged on strong urban and rural demand.
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Bajaj Consumer Care has declared a strong performance in the first quarter of FY27 backed by improving demand from consumers in both urban and rural markets. The company has ramped up its advertising and brand investments substantially during the quarter.
Regulatory filing showed that advertising and sales promotion expenditure was up 28.5% year-on-year to ₹49.22 crore in Q1 FY27 from ₹38.30 crore in the corresponding quarter last year. The higher spend came as the company was helped by improving margins and stronger demand across its product portfolio.
Consolidated revenue rose 28.3 per cent to ₹341.4 crore, from ₹266.1 crore a year ago. EBITDA increased 101.4% to ₹84.4 crore from ₹41.9 crore while EBITDA margin widened 890 basis points to 24.7% from 15.8%.
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Profit Momentum:
Profit after tax (PAT) rose 84.8% to Rs 70.7 crore against Rs 38.3 crore in the same quarter last year, driven by better operational efficiency and improved sales.
Gross margins expanded 510 basis points to 61.8% leaving the company more room to ramp up its consumer-facing marketing and advertising spend, the company said.
Bajaj Consumer Care also saw robust growth in its domestic business with the portfolio expanding by around 30% during the quarter. Its flagship Bajaj Almond Drops Hair Oil brand saw underlying volume growth in the early teens, driven by strong demand for low unit packs (LUPs) and sachet formats.
“Urban markets continued to be a strong momentum across retail and wholesale channels while demand in rural markets improved significantly, closing the gap with urban markets,” the company said. General Trade and Organised Trade grew by high-twenties percentage.
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Other growth brands also registered healthy sequential gains. The company said its coconut oil portfolio recovered volume momentum in traditional trade following strategic price corrections made to offset changes in raw material costs.
During the quarter, Bajaj Consumer Care also completed the operational and financial integration of natural beauty brand Banjara's, strengthening its presence in the personal care segment.
