Bajaj Consumer's profit rose 66%. So why did the share drop 10%?

Bajaj Almond Drops' maker reported a 66% rise in profit to ₹70 crore on 25% higher sales. The share still fell about 10%. It had nearly doubled in a year, from ₹265 to ₹519, and management would not say whether margins will hold as raw material costs rise. High expectations met an unclear outlook.

The results

July-September 2026 consolidated profit was ₹70.2 crore against ₹42.3 crore. Sales grew about 25% to ₹332.8 crore. Operating profit rose 71% to ₹83.3 crore, and the margin rose from 18.6% to 25%. This follows a strong April-June quarter, with sales of ₹342 crore and profit of ₹71 crore.

Why it fell

The share closed at ₹519 before the results, almost double its ₹265 of a year ago. After the results it fell to about ₹470. On the investor call, management said it could not predict whether price increases would lift margins, keep them steady or let them shrink, while raw material costs are rising. When a stock has run up this far, any doubt about the next quarter gets punished.

A real turnaround

For years this company did not grow. Sales were ₹961 crore in 2022-23 and ₹965 crore in 2024-25, and profit fell from ₹155 crore to ₹125 crore. Then 2025-26 brought sales of ₹1,165 crore and profit of ₹190 crore, and each quarter has been better than the one before. New products beyond Almond Drops and more sales outside India are helping.

What to watch

The gross margin next quarter. Prices of light liquid paraffin and vegetable oils, its main raw materials. Whether growth stays above 15%. At about ₹470, the share is around 29 times the last four quarters' profit (about ₹251 crore), no longer cheap, but fair if growth continues.

Nestlé India grows 20%, but the share falls on inflation worries

Cupid rose 30 times in 19 months. Is Vintage Coffee next?

ITC is down a third in a year: the cigarette tax that ate the profit

How to read FMCG quarterly results: revenue, volume and margins

All research reports