Bajaj Consumer Care · forward-looking guidance across the available source record.
Guidance tracker
Management expects gross margins to be more stressed in Q2 than Q1 due to high-cost inventory still in the system, with sequential easing expected in Q3 and Q4 as spot prices cool. The situation remains dynamically evolving given geopolitical uncertainty.
Management explicitly stated comfort operating in the low-to-mid 20s EBITDA margin range. Pricing is not expected to drive further margin expansion; operating leverage will be the lever, contingent on revenue performance.
Historical average has been 15-16%; management reiterated advertising is not an area where cost will be squeezed, with a commitment to double down and stay consistent over the medium term.
R1 (direct distribution) implementation across four named states is delivering a one-time 200-300bps growth delta on first execution, with ongoing benefits from outlet additions as a multi-year tailwind. R1 also being extended to existing states.
Management expects to maintain a higher growth trajectory than historical levels, driven by brand investment and distribution expansion.
The company targets adding 10% more direct outlets every year for the next 4-5 years.
Further EBITDA margin expansion will be gradual, building on the 600 bps YoY improvement this quarter.
Management will provide clarity on the future of smaller brands (focus or phase-out) over the next two to three quarters.