Bajaj Consumer Care shares tumble 10% despite Q1 sales up 28%, PAT up 85%
Bajaj Consumer Care reported net sales of ₹341.4 crore (up 28.3% YoY) and PAT of ₹70.7 crore (up 84.8%) in Q1 FY27, with gross margin at 61.8%. Shares still fell ~11% to ₹589.50 after Choice Equities downgraded to ADD, flagging a steep run-up and Q2 margin pressure from surging raw material costs.
What happened
Bajaj Consumer Care shares fell ~11% despite strong Q1 FY27 results (sales up 28%, PAT up 85%) after Choice Equities downgraded to ADD, citing steep run-up and
Key facts
- shares down 10.74% at ₹589.50
- net sales ₹341.4 crore up 28.3% YoY
- EBITDA ₹84.4 crore
- PAT ₹70.7 crore up 84.8%
- gross margin 61.8%
- target price ₹715
- 52-week high ₹692
Why this matters
Rising raw material costs threatening margins signal a strategic window to explore backward integration, supply hedging, or acquisitions that secure input costs and defend profitability.
What to watch
- LLP (light liquid paraffin) and edible/mineral oil price trends through Q2
- Q2 FY27 gross margin print vs. the 61.8% baseline
- Volume growth split vs. price-led growth in Q1 disclosures
- Additional broker rating changes and consensus target revisions
- Any commentary on rural demand recovery and distribution expansion
- Other brokerages likely reset targets and ratings within days, clustering around ADD/HOLD given valuation vs. growth tension
- Management commentary/con-call clarification on raw material hedging and pricing strategy to defend margins
- Bargain-hunting inflows if stock stabilizes near ₹580 support given strong headline PAT
- Possible price hikes announced in ADHO/hair-oil portfolio to protect gross margins into H2