Bajaj Consumer Care Ltd Management Discussions

Management Discussion and Analysis Report

Economic Overview Global Economy¹

The global economy remained steady with a growth rate of 3.3% in CY2025 despite ongoing trade realignments and policy uncertainty. While the United States imposed sizeable tanffs on several trading partners, subsequent negotiations tempered the most extreme measures.

Despite these headwinds, global expansion was supported by strong investment in technology, particularly Al-led capital expenditure in North America and parts of Asia, along with accommodative financial conditions and targeted fiscal support. Emerging market and developing economies (EMDEs) continued to outpace advanced economies, growing by A.4-%, reflecting relatively stronger domestic demand and policy adaptability.

The global economic outlook remains stable but faces multiple uncertainties. Geopolitical developments, such as in West Asia, continued to exert a pronounced influence on the global economic landscape. Persistent tensions across energy-producing regions and strategic rivalries among major economies contributed to volatility in commodity markets and trade flows. These developments added a layer of uncertainty to global growth conditions, business confidence and influenced inflation expectations and supply chain stability.

Global GDP growth is projected to remain at around 3.3% in CY 2026 and 3.2% in CY 2027. Growth in advanced economies is expected to remain moderate. Emerging and developing economies are projected to grow at above 4% and are expected to drive global expansion, supported by domestic demand, infrastructure investment and policy support.

However, in the near term, the trajectory of trade negotiations and policy clarity will remain important. Greater predictability and reduced tariff barriers could improve investment sentiment and strengthen rnedium-terrn growth prospects.

Indian Economy³

India maintained strong momentum in FY 2025-26, with an estimated GDP growth of 7.4-%. This performance was mainly driven by domestic factors, with Private Final Consumption Expenditure (PFCE) making up about 55-60% of GDP, emphasizing the crucial role of household spending in supporting economic growth.

On the expenditure side, private consumption growth remained steady, supported by rising employment in urban areas and improving real incomes. Gross Fixed Capital Formation (GFCF) also remained robust at around 33% of GDP, reflecting continued infrastructure investment and strengthening private sector sentiment. Government capital expenditure expanded at a double-digit rate, further reinforcing infrastructure development and crowding in private investment.

On the supply side, the services sector continued to be the principal driver of growth, growing at 8-9%, led by financial services, trade, hotel and real estate activities. Further, manufacturing growth gathered pace, supported by PLI schemes and the normalisation of supply chains. Agriculture growth remained moderate at 3-4%, with some fluctuations owing to monsoon patterns and weather-related disruptions. Overall, the broad-based nature of growth helped anchor domestic demand conditions and strengthen macroeconomic resilience.

Improved Price Stability⁶

Alongside strong growth momentum, inflationary pressures eased during the year, supporting purchasing power and reinforcing consumption stability. Headline CPI inflation remained at an average of 5-5.5%, easing from earlier peaks, although it remained above the medium-term target of 4%.

The inflation trajectory was primarily shaped by persistent food price volatility particularly in cereals, pulses and vegetables. Further, core inflation declined to 4%, reflecting softer global commodity prices and easing input cost pressures.

The reduction in core inflation provided relief to consumerfacing sectors by stabilising operating margins. However, elevated food prices continued to exert pressure on rural real income trends. Additionally the decline in global crude oil prices from previous highs helped contain fuel inflation and moderate logistics costs. This contributed to improved cost structures across industries and offered indirect support to demand conditions in consumer goods sectors.

Rural Economy and Agriculture Growth⁷

The rural economy exhibited early signs of stabilisation during the year, following a period of strain driven by elevated food inflation. Agricultural output remained broadly stable, notwithstanding localised disruptions arising from adverse weather conditions.

Ruralwage growth began to recoveraftera prolonged subdued phase, while fertiliser and other input cost pressures eased from earlier peaks, offering partial relief to farm profitability.

Management Discussion and Analysis

Although the recovery in the rural consumption remained uneven, demand sentiment improved sequentially during the second half of the year. Given that rural markets account for a significant share of overall FMCG volumes in India, this emerging stabilisation is an important leading indicator of a potential return to volume-driven growth.

India-US Trade Developments⁸

India and the United States continued to deepen their econo n iic engagement during the year, advancing discussions towards a more comprehensive trade arrangement. The proposed framework seeks to improve market access, address tariff issues and promote cooperation in strategic areas such as technology, clean energy and manufacturing.

The United States remains one of Indias major trading partners, with bilateral trade amounting to over USD 190 billion in recent years, underscoring the strategic and economic significance of the relationship. Under the proposed agreement, India is expected to eliminate or reduce tariffs on a broad range of U.S. industrial products, as well as selected food and agricultural products. These include dried distillers grains (DDGs), red sorghurn, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others. The agreement is anticipated to facilitate greater trade flows, improve supply chain integration and reinforce long-term economic cooperation between the two countries.

Budget 2026-27⁹

In the Union Budget for FY27, the Government reaffirmed its commitment to growth-led development by increasing capital expenditure to ^12.2 lakh crore, one of the highest infrastructure allocations in Indias fiscal history. This represents a rise from approximately ^11.2 lakh crore in the previous year and reflects a continued emphasis on strengthening connectivity, logistics and both urban and rural infrastructure.

The fiscal deficit has been targeted at 6.3% of GDP, marginally lower than the 6.6% target for FY26, signalling the Governments ongoing commitment to fiscal consolidation while sustaining growth-oriented expenditure. Total expenditure for FY27 is estimated at approximately <53.5 lakh crore, with non-debt receipts of over <36 lakh crore and net tax revenue of around ^28.7 lakh crore. The overall budget framework reflects a calibrated approach that balances fiscal prudence with the need to maintain public investment momentum in support of medium-terrn growth.

Indias growth momentum remains underpinned by strong domestic consumption, sustained government capital expenditure and improving private investment sentiment. With consumer spending continuing to drive GDP and infrastructure outlays remaining elevated in the FY27 Budget, the overall demand environment is expected to remain favourable.

The moderation in core inflation, coupled with stable input costs, is expected to support margins across consumerfacing businesses. At the same time, a gradual improvement in rural incomes and sentiment is likely to drive volume growth, especially in rnass-rnarket FMCG businesses. Further advancements in trade and investment relationships are also expected to strengthen external stability.

Industry Overview FMCG Industry¹⁰

The Indian FMCG industry continued to expand during the year, driven by prerniurnisation and price led value growth. Improving rural demand, and recovering urban consumption supported the upward trajectory.. The Indian FMCG market reached approximately USD 287.91 billion in 2025, driven by rising incomes, expanding urbanisation and increasing preference for convenience-led consumption."

FMCG value growth accelerated to cross 10% on a year-to- date basis, supported by pricing actions and mix improvement. Underlying volume growth remained moderate at sub-5% levels, indicating a measured recovery in consumption. Rural markets outperformed urban markets and continued to lead growth, supported by favourable monsoon conditions, improved agricultural output and continued policy support.

The divergence between value and volume growth reflects a mix-led expansion, with pricing actions and prerniurnisation contributing to overall industry growth

Leveraging Online Platforms

The rapid expansion of quick commerce is fundamentally reshaping the FMCG distribution landscape in India. It now accounts for 70-75% of the total e-grocery orders, marking a rapid surge from 35% in previous years. India is recognised as the worlds first truly scaled quick-commerce market, having recorded an impressive CAGR of 70-80% CAGR across 80 cities.

A robust digital infrastructure forms the backbone of a modern economy and the nation has made remarkable strides in its journey towards becoming a digitally empowered society. This digital transformation has created a strong foundation for new-age consumption models and accelerated market evolution. For FMCG businesses, this shift has translated into significant momentum. Quick commerce, in particular has driven 50-100% sales growth in FY25, supported by rising incomes, a broader product portfolio and an increasing consumer preference for convenience.

In addition, the liberalised FDI policy regime in India, allowing 100% FDI in single-brand retailing and 51% in multi-brand retailing, remains supportive of FDI inflows, global best practices and investments in the back-end infrastructure.

This has helped the Organised retailing space grow in the FMCG industry.

Policy and Regulatory Push

Indias policy environment during the year reflected a clear focus on supporting consumption, improving tax efficiency and maintaining macroeconomic stability.

A key development was the implementation of GST 2.0 in September 2025, which streamlined the tax structure by consolidating multiple slabs into a simplified framework, primal ily comprising 5% for essential goods and 18% as the standard rate. This rationalisation has reduced classification complexities, improved compliance and enabled more efficient pi icing across FMCG categories.

The Union Budget 2025-26 introduced targeted measures to support consumption through income augmentation and rural development. Tax relief under the new regime, including nil income tax liability up to ^12.75 lakh, is expected to enhance household spending capacity. In addition, initiatives such as the Prime Minister Dhan-Dhaanya Krishi Yojana, covering 100 districts, are aimed at improving agricultural productivity and rural incomes, thereby supporting demand across rural and semi-urban markets.

Recovery in consumption momentum

Improving macroeconomic conditions, easing inflation and supportive policy measures have created a favourable environment for revival in consumer demand. Industry data indicates renewed momentum in both value and volume growth, reflecting gradual restoration of household spending confidence.

Rural demand rebound

Rural markets have shown sequential improvement, supported by better agricultural outlook, income support measures and widening distribution reach. The rural-urban growth gap has narrowed, with rural volumes contributing meaningfully to overall FMCG growth.

Rapid expansion of quick commerce

Quick commerce has emerged as a significant growth engine within FMCG, driven by rising digital adoption and demand for convenience. Faster fulfilment models and wider assortment availability are reshaping purchase behaviour in urban and semi-urban markets.

Premiumisation and evolving preferences

Consumers are increasingly shifting towards branded, premium and health-oriented products. Demand for value-added offerings in personal care, packaged food and wellness segments is significantly contributing to portfolio expansion.

Policy and investment support

Government initiatives aimed at boosting domestic manufacturing, strengthening supply chains and encouraging foreign investment continue to create a supportive ecosystem for FMCG growth. GST reforms during the year have improved product affordability and strengthened consumer sentiment in key categories.

Organised retail expansion

Modern trade and e-commerce platforms continue to gain share in overall FMCG consumption. Increasing smartphone penetration and higher digital engagement levels are expanding product access and enhancing brand visibility.

India is emerging as a leading FMCG manufacturing hub led by cost efficiency, technological advancement and an extensive distribution network. The FMCG market is projected to grow at a CAGR of 27.9% in the period 2021-2027 and expected to reach approximately US$ 615.87 billion, showing robust long-term consumption fundamentals.

Industry growth is being di iven by deeper market penetration through affordable pricing strategies, focused product offerings and sharper consumer insights at the one end and prerniurnisation at the other.

The development of e-cornrnerce and guick-commerce platforms supported by the increasing adoption of smartphones and internet penetration is enhancing the availability of products in urban and serni- urban areas. Simultaneously, rising incomes and health and wellness awareness are fuelling the demand for premium and differentiated products, thereby encouraging investments in innovation and R&D. Rural markets, contributing close to 38% of FMCG consumption are also projected to remain a key long-term driver of growth, fuelled by rising incomes, infrastructure development and government suppoit.

Hair Oil Industry¹²

Global

The global hair oil industry continues to hold a stable position within the broader hair care market, supported by sustained consumer focus on hair nourishment, scalp health and preventive care.

The category is evolving beyond traditional formulations, with increasing demand for targeted solutions addressing concerns such as hair fall, dryness, scalp irritation and damage repair Product differentiation through ingredient innovation, functional positioning and improved textures has reinforced relevance across both mature and emerging markets. Expansion of organised retail and digital commerce has further strengthened global accessibility.

Asia Pacific continues to account for the largest share of global consumption, supported by established han oil usage habits and rising personal care awareness. At the same time, developed markets are witnessing growth in premium, therapeutic and plant-based oil formulations.

Emerging trends

Growing consumer preference for plant-based, herbal and clean-label formulations is influencing innovation and product positioning across the category.

• Increased awareness of scalp health and hair fall concerns is driving demand for restorative, treatment- oriented and function-specific hair oils.

• Demand for lighter, non-greasy and fast-absorbing textures is rising among urban consumers seeking convenience and ease of use.

• Enriched and value-added variants with specialised ingredients are gaining traction, contributing to premium mix expansion within the category.

• Digital platforms, influencer engagement and e-cornrnerce visibility are increasingly shaping consumer discovery and purchase decisions.

India¹³

Indias hair oil market is witnessing increasing diversification, with a proliferation of newer brands and sub-segments driven by digital commerce and direct-to-consumer (D2C) ecosystems. Lower entry barriers and wider digital reach have enabled new-age brands to scale, while established players are extending their portfolios through targeted offerings across price segments and ingredients.

Indias hair oil market is undergoing a transformation, driven by the digitalisation of distribution channels and evolving consumer preferences. The market reached approximately USD 152.13 million in 2025 and is projected to growto around USD 206.03 million by 2034-, exhibiting a CAGR of 3.4-3%, reflecting steady expansion within the broader personal care segment. As a result, consumers have access to a wider and more diverse product portfolio.

Advances in Al personalised recommendations, E-cornrnerce expansion and digital engagement are influencing shopping behaviour and creating opportunities for brands to strengthen consumer engagement. Leading players are responding through differentiated offerings, targeted launches and continued investments in product development to enhance product efficacy and relevance.

Despite the emergence of alternative hair care formats, hair oiling continues to remain a core part of consumer routines across the country. The category retains strong relevance driven by its association with nourishment, scalp and hail health.

Rising awareness of hair and scalp health, coupled with a shift towards natural and herbal formulations, positions the hair oil category for steady growth. Globally, consumei demand is increasingly focused on products that provide nourishment, hairfall control and scalp care. The Asia-Pacific region is expected to remain a key market, supported by strong consumer adoption and a large addressable base.

In India, growth is likely to remain stable, particularly dr iven by rural and semi-urban markets where traditional usage patterns continue to hold relevance while category evolution is expected to continue through prerniurnisation, expansion of value-added products, rapid digitisation and the expansion of E-cornrnerce. The increasing presence of D2C brands, along with portfolio extensions by established players and expansion into ornnichannel distribution, is likely to drive innovation and intensify competition.

Beauty and Personal Care Industry

Global¹⁴

The global beauty and personal care (BPC) market remains a substantial and steadily expanding segment of the consumer goods landscape, driven by evolving grooming routines, rising discretionary spend and deeper penetration across emerging and developed regions. According to recent industry estimates, the market was valued at approximately USD 552 billion in 2025 and is projected to grow further, with sustained global demand across skin care, hair care, cosmetics and hygiene products.

India¹⁵

The Indian BPC market is experiencing steady growth, supported by rising disposable incomes, accelerating urbanisation and evolving consumer preferences for high- quality and natural products. The total market value in 2025 is estimated at USD 31.19 billion, with broad-based expansion across skin care, hair care and personal grooming categories. Personal care value growth during the year approached 9%, broadly in line with the two-year CAGR, with rural markets outperforming urban markets.

Digital transformation is significantly reshaping the industry, The widespread adoption of smartphones, affordable broadband and social media influence has changed the way customers discover and purchase products.

Direct-to-consumer (D2C) channels are emerging as a significant growth avenue within the personal care market. Indias D2C ecosystem has expanded significantly in recent years, with the market estimated at approximately USD 12-15 billion in 2025 and growing at 25-30% annually.²The increasing adoption of e-commerce platforms, brand-owned websites and quick commerce channels is enabling companies to directly engage with consumers, improve product visibility and accelerate new product adoption.

The Asia-Pacific region is projected to maintain its leadership in the global market, supported by population size, urbanisation and widespread adoption of skincare and hair care practices. North America and Europe remain key premium and innovation-driven markets, benefitting from higher per- capita spending, ageing populations and increasing demand for advanced skincare and anti-ageing solutions.

The global BPC market is estimated to reach USD 804.3 billion by 2034-, growing at a CAGR of 4.27% from 2026 to 2034. Increasing competition is likely to drive global companies to invest further in R&D, sustainability initiatives, digital engagement and portfolio expansion in orderto meet evolving consumer preferences across regions.

D2C and digital-first models are expected to scale further, supported by continued growth in e-commerce, quick commerce and data-driven consumer engagement. These channels are likely to enable faster innovation cycles, targeted marketing and improved consumer insights, shaping competitive dynamics and driving category expansion in the personal care market.

Opportunities and Challenges

Opportunities

Formalisation of consumption

A gradual shift from unorganised to organised and branded products across rural and semi-urban markets presents a structural opportunity for compliant and distribution-led FMCG players. As taxation clarity and digital payments deepen market formalisation, scale advantages are expected to strengthen.

Premium mix expansion in core categories

Even in traditionally mass categories such as hair oils and packaged essentials, consumers a re increasingly exploring enriched, value-added and differentiated formats. This mix shift offers scope for margin improvement without relying solely on volume expansion.

Acceleration of quick commerce ecosystems

The rapid scale-up of quick commerce platforms is enabling faster replenishment cycles and impulse purchasing behaviour. This evolution in buying patterns presents opportunity for improved assortment strategy, pack innovation and targeted activation.

Data-driven demand planning

Greater access to channel-level data across modern trade and digital platforms is improving demand visibility. Analytics-led forecasting and sharper trade planning can enhance inventory rotation and reduce working capital intensity across the sector.

Rural penetration beyond essentials

Improving rural confidence is gradually expanding consumption beyond basic necessities into branded personal care and packaged products. This widening basket size provides incremental headroom for category expansion.

Challenges

Commodity cost cyclicality

FMCG manufacturers remain exposed to agricultural and oil-linked input volatility. Sudden cost swings require disciplined pi icing strategies and supply-side efficiencies to sustain margins.

Competitive intensity and price sensitivity

Core FMCG categories remain highly penetrated and price-sensitive. Sustained brand investments and trade discipline are required to defend share without eroding profitability.

Channel margin dynamics

The growing share of organised and digital trade introduces structural shifts in trade margins and inventory cycles. Industry participants must recalibrate pricing architecture and pack strategies to maintain balance across channels.

Company Overview

Bajaj Consumer Care Limited (BCCL) is one of the leading Indian FMCG companies with a legacy of over 70 years in the hair oil and personal care segment. The Company has established strong brand equity through products such as Bajaj Almond Drops Flair Oil, Bajaj 100% Pure Coconut Oil and Nomarks. With a focused presence in hair care and allied personal care categories, BCCL caters to the evolving needs of consumers across urban and rural markets in India, along with select international geographies.

The Companys han oil category has remained resilient with steady volume and value growth over the past few years. During the year, BCCL continued to strengthen its core franchise through sustained brand investments, sharper pi ice-pack strategies and disciplined revenue management. It also expanded and streamlined its broader portfolio while improving distribution reach across General Trade, Modern Tiade and E-Commerce channels.

Business Performance Review

The Companys performance during the year reflected improvement in domestic demand conditions, supported by easing inflation and stabilising consumption trends. Growth was driven by focused execution across key franchises, calibrated pricing interventions and continued investments in distribution and media.

Almond Drops Hair Oil

The Almond Drops franchise delivered strong domestic growth during the year, led by revival in low unit packs including sachets which recorded healthy volume traction. Mid and large packs also witnessed steady improvement supported by focused distribution expansion and improved retail visibility

Revenue management initiatives and rationalisation of trade spend improved portfolio discipline during the year. Advertising investments were deployed with sharper targeting across television and digital platforms, enabling the Company to maintain leadership in share of voice. Digital campaigns and influencer activations continued to drive meaningful engagement, enhancing brand visibility, expanding audience reach, and delivering engagement levels that exceeded ndustry benchmarks.

Coconut Oil Portfolio

The Coconut Oil portfolio continued to demonstrate healthy business momentum during the year, driven by focused portfolio and pricing strategies. Pricing and discount structures were recalibrated in line with market dynamics and input cost movements. While these actions impacted short-term volumes, they improved overall portfolio margins and profitability. Flousehold penetration of Bajaj Coconut Oil continued to expand despite commodity volatility.

A key strategic initiative to strengthen the coconut portfolio was the launch of Bajaj Gold Enriched Coconut Flair Oil. The product was introduced across multiple SKUs and price points to ensure adequate coverage in General Trade and organised trade.

Other Portfolio (Non-ADHO)

The Companys non-ADFlO portfolio provides category diversification beyond the core Almond Drops franchise. The portfolio includes coconut-based variants, value-added hair oils, skin care offerings under the Banjara brand and digital- forward personal care categoi les. During the year, this portfolio delivered strong growth, supported by focused execution across modern trade, digital platforms and selected urban markets.

Banjara remained a key growth driver within this segment. The brand benefited from increasing consumer interest in natural and Ayurveda-led offerings. Distribution in Organised Trade improved during the year, enabling better assortment presence and higher on-shelf visibility Continued portfolio rationalisation and sharper channel alignment contributed to improved realisations.

The coconut-led extensions and value-added offerings also gained traction during the year. The launch of Bajaj Gold Enriched Coconut Hair Oil strengthened the Companys position in the value-added coconut segment. The product was launched in multiple SKUs and at different price points to reach a wider set of consumers. It strengthened presence across both General Trade and Organised Trade channels.

The digital-forward portfolio recorded improved traction, supported by targeted campaigns and better integration with e-cornrnerce and modern retail channels.

Strategic Synergies and Value Realisation - VPCL

The integration of Vishal Personal Care Limited (VPCL) expanded the Companys presence in the natural and herbal hair and skin care segment and widened its portfolio beyond the core hair oil category. During the year, the VPCL portfolio recorded healthy growth and contributed to consolidated revenue. The integration improved distribution coverage, strengthened presence in Organised Trade and digital channels and enabled better coordination across key operating functions.

Sales and Distribution

The Company continued its go-to-rnarket transformation journey under Project Aarohan with phased implementation across additional states during the year. The initiative focused on redesigning market structures, strengthening direct reach, improving field effectiveness and refining channel programs across retail and wholesale networks. The phased rollout enabled betteralignment between distribution partners and field teams, leading to improved execution discipline across markets.

During the year, the General Trade channel reflected improving market conditions and recorded healthy growth. Urban markets experienced robust expansion, supported by wholesale recovery and strategic gains realized through Project Aarohan. Rural markets, despite a sluggish start, demonstrated sequential improvement and closed the year in positive territory. The Company continues to review its channel processes and revenue management practices to ensure consistent execution across all territories.

Organised Trade continued to strengthen its strategic relevance to the business, contributing a thud of domestic revenue during the year. The channel delivered strong doubledigit growth, supported by sustained momentum across key formats. Modern Trade, E-Cornrnerce and Quick Commerce were the primary growth drivers, outperforming the overall Organised Trade channeland expanding the Companys reach across evolving consumer purchase occasions. The Company also continued to leverage its presence across institutional and other organised retail formats, contributing to channel scale and market coverage. Going forward, the Company remains focused on deepening customer partnerships, enhancing assortment visibility and accelerating growth across high-potential Organised Trade channels.

Supply Chain and Procurement

The year witnessed major input cost inflation concentrated in copra. This was addressed through a combination of proactive positions in procurement of copra, calibrated pricing actions and focused cost efficiency measures. Correction in pricing and discount structures within the coconut oil portfolio supported margin recovery, despite some impact on short-term volumes.

At a Company level, several cost efficiency improvement projects were completed during the year, resulting in reduction in material costs and improvement in gross margins. These initiatives were undertaken across value engineering, adoption of alternate materials and sourcing from alternate geographies. Procurement practices were further strengthened through disciplined buying and vendor alignment, enabling better cost control and supply stability.

Manufacturing

The Companys manufacturing operations continued through a mix of owned and third-party facilities, providing flexibility across product categones and geographies. Du11ng the yeai, focused initiatives were undertaken to improve operational efficiency across manufacturing processes. These included frugal innovation, increased automation in select areas, implementation of kaizen practices and reduction of non- value-added activities (NVAs), leading to improvements in productivity and cost efficiency.

At an operational level, efforts were directed towards better production planning, process standardisation and resource optimisation. These initiatives, along with broader productivity actions undertaken during the year, contributed to improved cost structures and supported margin expansion.

The year also saw the launch of Bajaj Gold Em iched Coconut Hair Oil. Multiple SKUs and price points were introduced within a short timeframe to ensure coverage across General Trade and Organised Trade channels. Manufacturing and supply teams worked to align production schedules, packaging formats and channel-specific allocations to support the rollout. The network maintained supply continuity during this transition and ensured availability across markets while managing inventory levels prudently.

Quality

Quality is embedded across the entire value chain and is driven through a robust framework of both Quality Assurance and Quality Control with a clear focus on delivering superior consumer experience. Our quality journey begins with a robust vendor quality management and onboarding framework, where every supplier is meticulously evaluated against stringent quality, compliance, and reliability parameters, followed by continuous performance monitoring through structured audits and reviews. This ensures that only the finest raw and packaging materials enter our manufacturing system.

All incoming raw and packaging rnatenals undergo rigorous testing at our NABL-accredited laboratories, which are equipped with advanced analytical, microbiological, and packaging evaluation capabilities. With 100% incoming material testing against defined specifications, we ensure only the highest quality inputs enter our manufacturing process.

Our manufacturing operations are governed by Good Manufacturing Practices (GMP) and globally recognized ISO standards. Quality is embedded at every stage through strong in-process controls, real-time monitoring of critical parameters, and automated systems such as online weighrnent and inspection checks. This disciplined approach enables us to consistently deliver high first- pass yield and minimal process deviations, reinforcing our zero-defect mindset.

Before dispatch, each batch undergoes comprehensive finished goods evaluation, ensuring 100% compliance with internal specifications and regulatory requnements. Only products meeting our stringent quality benchmarks are released to the market. Our commitment extends beyond manufacturing into the marketplace. We actively momtoi product performance through structured consumer feedback systems and complaint analytics, driving continuous improvement. This has enabled us to maintain low consumer complaint rates and improved resolution turnaround times, strengthening consumer trust and satisfaction.

Environment and Sustainability

We strive to keep sustainability at the heart of our operations by ensuring optimal usage of resources like water and electricity. We work on both the demand and supply side of both these ci itical resources We have implemented rainwater harvesting schemes in Guwahati and Paonta Sahib. This has helped us to recharge 5X of our consumption of water for the current year. In the case of energy, we reduce our carbon footprint by various initiatives including investing in newei technologies, continuously working on improving efficiency parameters in our operations. We have taken measures like Miyawaki plantation of trees near our plants and also working on sourcing of renewable sources of power. We intend to be carbon neutral in Scope 1 and Scope 2 in the medium term.

The Company has fulfilled its obligations under the Extended Producer Responsibility (EPR) framework by effectively addressing plastic waste management. The Company is also done successful ti ials to incorporate recycled plastic in the packing mateiials and we intend to start commercially using it in FY26.

Human Resources

Maximizing Human Potential

At Bajaj Consumer Care, the vision of becoming a Great Place to Work is built on creating an environment where every employee can contribute meaningfully to the organisations growth and transformation. Guided by values of entrepreneurship, innovation, fairness and inclusivity, the Company empowers its people to learn through hands-on experiences, take calculated risks and grow irrespective of hierarchy. It takes pride in celebrating individual uniqueness and strengthening diversity, reflected in over 40% women representation in functions like R&D, Internal Audit and HR and 35% women in factory roles.

Fan ness is embedded across the employee lifecycle, starting with an unbiased hiring process. Candidates are assessed solely on merit, skills and experience. Executive search partners are instructed to focus on job fitment, while hiring managers undergo training to eliminate conscious and unconscious bias. For instance, Sales Officer candidates undergo functional assessments followed by interviews with the line manager, skip-level manager and department head. Compensation proposals are benchmarked against industry standards and evaluated by the Head of Rewards to ensure equity with role requirements, peer groups and market cornpa-ratios.

Bajaj Consumers Reward Strategy

Bajaj Consumers reward strategy reinforces fairness, transparency and performance orientation. By linking rewards to measurable outcomes and providing equal opportunities for recognition and growth, the Company ensures high motivation and alignment. Inclusive practices, transparent feedback and structured development pathways further strengthen a merit-driven culture.

Aararnbh, Bajaj Consumer Cares flagship onboarding program, ensures a seamless and impactful induction experience for all new hires across Sales and Non-Sales functions. Evolving through a continuous PDCA cycle, it offers tailored modules, practical exposure through shadow stints, access to onboarding playbooks and functional learning resources. A structured 30-60-90-day engagement model, supported by quizzes and feedback loops, ensures clarity, support and continuous improvement.

The program has delivered strong outcomes: 100% activity completion, 47% reduction in infant attrition in the first quarter, average satisfaction scores of 4.7/5 and over 80% Sales Officers becoming market-ready within a month. GPTW results further validate Aararnbhs impact—94% of employees reported feeling welcomed, surpassing FMCG industry benchmarks. With over 95% onboarding compliance, Aararnbh ensures a consistent, high-quality experience across regions.

The EDGE performance management system strengthens meritocracy through a 3x3 rnati ix evaluating business goals (what) and behavioural goals (how). Built on employee expectations of clarity, development, recognition and balance, EDGE emphasizes transparent goal-setting, competency- driven evaluations, regular reviews and structured feedback. Recent results show improved clarity and alignment, reinforcing Bajaj Consumers commitment to performance excellence and talent development.

Learning & Development

At BCCL, the aspiration to be an employer of choice is strengthened by comprehensive development initiatives that enable employees to grow at every stage of their careers. The learning and development framework equips individuals with the skills, mindsets and leadership capabilities needed for current roles while preparing them for future challenges. Foi Individual Contributors, programs focus on building personal leadership through Solution Orientation, Executive Presence, Stakeholder Management and Influencing Skills, ensuring they drive impact and take ownership of then growth.

Nielsen Data Analytics Training for the Sales workforce enhances analytical strength and decision-rnaking. Designed for GT Sales teams, the program builds understanding of RMS, key metrics, stock availability analysis and insight-led planning. After a pre-assessment, participants analyse their territories and present findings to the Head of Sales and Zonal Leaders, receiving real-time feedback, making the expei lence practical, immersive and business-focused.

To strengthen Solution Orientation, the in-house L&D team designed a structured problem-solving program for frontline sales. Teams used the DRIVE framework to define real market problems, identify solutions and conclude with a RACI plan for implementation. For Support Functions, a dedicated program on Influencing and Stakeholder Management helps employees navigate communication styles, influence effectively and manage conflicts. The program includes psychometric assessments and external facilitation, benefiting over 100 participants.

For First-Level Managers, the Ascend - First-Level Manager Learning Journey supports both new and experienced managers. Spanning four months, the journey includes six classroom days across three modules: Knowing & Managing Self, Managing People and Managing Performance. Supported by coaching, assignments and on-the-job projects, managers present outcomes to leadership, ensuring learning translates into real impact. Post-program evaluations track application and effectiveness, with 4-5 managers completing the journey in the past year.

Mid-rnanagernent development is reinforced through a Behavioural Events Interviewing Program, ensuring standardized, cornpetency-based hiring across the organisation. A detailed interview guide and aligned assessment formats ensure consistency and fairness, with 40 hiring managers trained.

Functional excellence programs include workshops such as Negotiation and Influencing for Procurement, featuring need- based design, practical exercises, 30-day action plans and one-on-one reviews, followed by departmental reports for long-term institutionalisation. Employees also attend industry programs and competitions to gain external exposure.

In Manufacturing, BCCL advances capability building through its Smart Manufacturing Framework, integrating technology with human potential. Initiatives such as Kaizen, 5S audits, productivity projects and autonomous maintenance drive safety, quality, cost efficiency and morale. Teams actively participate in national Quality Circle and Kaizen competitions, achieving multiple awards across sites. The annual Smart Manufacturing Workshop further reinforces learning and recognition.

To foster collaboration, BCCL hosts annual 3-day offsite events for each function, combining experiential learning with informal bonding, strengthening cross-location camaraderie and alignment.

Talent Management

The Talent Management Framework at BCCL is central to the organisations mission of becoming a Great Place to Work, reflecting a strong focus on employee development, fairness and inclusivity. The framework ensures that talent is nurtured systematically and aligned with business pi iorities, while also supporting individual growth aspirations.

1. Strategic Alignment with Organisational Goals

The framework begins with identifying and placing the right talent in the right roles to drive business performance. Talent profiles are created for eligible employees based on tenure and performance. These profiles include demographic details, career history, aspirations and mobility preferences. Each profile is reviewed by the Talent Council—comprising the organisations leadership team—to assess the employees potential for future roles. During these discussions, risks and retention strategies are identified, leading to the creation of succession plans and career roadmaps for critical positions.

2. Holistic Development Opportunities

Following the Talent Council discussions, Individual Development Plans (IDPs) are prepared for all employees to support their growth. These plans outline key development needs, aligned with both career aspirations and organisational goals. Development actions are structured across three categories:

• Led by Self: Self-learning, industry networking and internal engagement.

• Supported by Managers: Regular feedback, coaching and functional on-the-job assignments.

• Supported by the Organisation: Managerial and leadership programs, cross-functional projects, executive coaching, job rotations and enrichment roles.

This rnulti-tiered approach ensures every employee receives the right blend of support and challenge.

3. Transparent and Inclusive Talent Identification

The framework promotes objectivity through structured assessment of potential and performance, supported by behavioural competency evaluations and consistent outcome reviews. Based on IDPs, quarterly checkins track development progress. As vacancies arise, employees are moved into roles aligned with succession plans, ensuring clear and fair career pathways.

A. Succession Planning and Career Pathing

Succession planning is supported through tailored IDPs that prepare employees for future responsibilities. Clear career progression frameworks help employees align personal ambitions with organisational requirements, ensuring sustained leadership pipeline strength.

Shikhar: Developing Frontline Sales Talent

Shikhar is BCCLs flagship program designed to identify, develop and elevate high-potential frontline sales employees into leadership roles such as ASEs and ASMs. The journey begins with performance-based identification, followed by assessment centres that evaluate sales competencies through case studies and interviews. From an initial pool of 50 participants, 25 were promoted as ASEs.

All shortlisted and non-shortlisted pai ticipants undergo a six-rnonth capability-building program facilitated by external experts, covering channel management, behavioural skills and leadership readiness. Monthly coaching ensures continuous development.

Shikhars impact has been transformative: 60% of ASE roles in 2024- were filled internally through the program- up from 25% previously. Ramp-up time for new ASEs improved and one participant has already progressed to an ASM role. Attrition among participants dropped significantly and manager NPS improved due to the programs transparent, merit-based selection system.

PACE (Performance Acceleration & Capability Enhancement]

PACE is a structured six-month development journey designed for ASM and equivalent population in Sales and Sales Support functions. The program aims to build future-ready sales capabilities by strengthening key business and leadership competencies. It follows a holistic approach driven by reflection, application, feedback and continuous learning.

The first batch of PACE began with a two-day Development Centre, where participants underwent comprehensive evaluation through aptitude and psychometric tests, case studies, BEI and situational role plays facilitated by internal and external experts. This resulted in detailed insights on strengths, improvement areas and individualised growth plans.

The learning journey progresses through four stages—Evaluate, Learn, Apply and Grow—integrating diagnostics, cornpetency-based learning modules, mentoring, live projects and ongoing development. Core competencies addressed include fostering trust, inspiring teams, data-driven decision-rnaking, strategic thinking and influential communication.

Lakshya - Campus Hiring Initiative

The Lakshya program, BCCLs flagship campus hiring initiative, is designed to identify, develop and empower high-potential talent from leading B-schools across India. Structured into three key segments—Summer Interns, Management Trainees and Sales Trainees— the program aligns business needs with long-term talent development while strengthening the Companys position as an employer of choice.

The Summer Internship Program targets first-year MBA students from top B-schools who join for a two-month stint. Interns work on impactful projects across Sales, Marketing, Supply Chain, HR and other core functions, supported by close mentorship from senior leaders. Over the past two years, the Company has consistently onboarded 15 interns annually, achieving an impressive 60% PPO conversion rate. High-perforrning interns are offered Management Trainee (MT) roles, making this segment a critical feeder into the leadership pipeline and a strategic driver of early talent acquisition.

The Management Trainee Program forms the second pillar of Lakshya. MTs are recruited from Tier 1 and Tier 2 B-schools and undergo a structured one-year training journey with rotational assignments across business verticals. This holistic exposure enables trainees to build a 360-degree understanding of the organisation. The program has seen significant expansion, growing from A trainees in 2020-21 to 20 in the last two years—a 5X increase, reflecting the Companys commitment to grooming future leaders. Upon completion, MTs are placed as Assistant Managers in their respective functions.

Complementing Lakshya is the strategic campus brand-building initiative, Building Tomorrow, which enhances visibility and engagement at premium B-schools. Through leadership talks, workshops and early engagement sessions, the Company has secured preferred hiring slots and strengthened its positioning as a top employer. The sustained 60% Summer Intern- to-MT conversion rate underscores the effectiveness of this initiative in identifying and nurturing talent early.

Looking ahead, the Company plans to further deepen campus engagement through live projects, enabling Year 1 and Year 2 students to gain hands-on exposure across Marketing, Sales, Supply Chain, HR and Finance. Additionally, upcoming case study competitions will help connect with high-potential talent early and strengthen the pipeline in an increasingly competitive talent market.

Together, Lakshya and Building Tomorrow form the backbone of the Companys Employer Value Proposition (EVP), showcasing its commitment to talent development, innovation and meaningful career growth.

5. Commitment to Equity and Inclusion

Inclusivity remains foundational. All eligible employees are considered based on tenure and grade, while feedback from managers and employees helps reduce bias. Diverse development formats accommodate varying learning styles, ensunng equal opportunity for growth.

Enhancing Employee Experience

At BCCL, the people philosophy is anchored in core values— Consumer Centricity, Innovation, Entrepreneurship and Integrity. These values guide policies, communication practices and engagement initiatives, shaping a workplace that prioritises well-being, transparency and high performance.

VEERA exemplifies the Companys commitment to women in frontline sales roles by addressing sanitation and wellness concerns during travel.

Udaan, a performance-driven contest for Sales Officers and Area Sales Managers, motivates teams through structured incentives and recognition.

Recognition and appreciation play a pivotal role in strengthening culture at BCCL.

• Thank You Cards celebrate peer appreciation and values-driven actions, with over A,500 cards exchanged in last two years.

• Spotlight Awards acknowledge exceptional performance and initiative across teams.

• Long Service Awards honour employees completing 5, 10, 15, or 20+ years, reinforcing loyalty and pride.

• My Child, My Pride celebrates the achievements of employees children across academics, sports and arts, fostering deeper family engagement.

• Through the Quarterly Silver Star Awards, Annual Gold Star Awards and the prestigious MDs Circle of Excellence, the Company consistently boost employee morale and reward individuals who demonstrate extraordinary contribution and impact.

• Sports events, Festival celebrations and Family Day promote unity, bonding and well being across locations.

These initiatives collectively build a culture of gratitude, belonging and motivation.

Driving Trust Through Open Communication

Participation in the annual GPTW survey demonstrates BCCLs commitment to transparency. Findings are shared in town halls, followed by function-wise and zone-wise focus group discussions. Leadership acts on insights and provides periodic updates, ensuring employees feel heard and respected.

Communication platforms reinforce alignment and connection. Inspire, the dedicated Sales group, enables real time information flow. Voice of Bajaj centralizes company announcements, while Linkedln showcases employee achievements and strengthens employer branding.

Engagement Platforms That Strengthen Connect

To strengthen internal connect, the Managing Director launched Expresso Hour," a series of skip-level interactions enabling transparent, trust-based conversations directly with employees. These sessions have played a vital role in fostering openness, idea-sharing and cultural alignment.

To further drive cultural alignment within Finance, a Finance Culture Assimilation Workshop titled United for Impact was conducted, focusing on trust-building, values alignment and strengthening team cohesion within the function.

Chai Par Charcha, a skip-level engagement initiative, breaks hierarchical barriers by allowing Sales Officers to interact directly with senior leaders. Held twice a month virtually and complemented by in-person sessions during market visits, it enables employees to share challenges, ideas and feedback

openly. The initiative has improved execution, enhanced productivity and remarkably achieved 100% retention among participants, highlighting its positive influence on engagement and empowerment.

Sarathi, a structured engagement platform led by Regional HRs, strengthens the HR-frontline relationship. Through regular touchpoints, pulse surveys and real-time feedback Sarathi ensures employees voices are consistently heard and addressed. This approach enhances performance, reduces attrition and builds a more connected and motivated sales force.

VIBE - Valuing Involvement to Build Experience, is BCCLs milestone-based feedback mechanism that captures employee sentiment across key stages—probation completion, 1-year and 3-year milestones, role changes and pre/post-exit phases. By gathering real-time insights, VIBE helps continuously enhance people practices and ensures every employee feels valued throughout their journey.

Awards and Accolades

At the World HRD Congress 2025, the HR Team earned two prestigious accolades: Best HR Organization to Work For and the Diversity Impact Award. Additionally, the BCCL HR Team was honoured with the "Exceptional Employee Experience Award - Large Scale" at the ETEX Awards 2025 by ET HR World.

Bajaj Consumer Care has also proudly achieved the Great Place to Work certification for the eighth consecutive year, reflecting its unwavering commitment to creating an exceptional employee experience. For the second year in a row, the Company has been recognized as the "Best Workplace in the FMCG Sector."

The Trust Index score continues to improve year over year, demonstrating growing trust, pride and camaraderie within teams. This year, the GPTW Mean Score increased by 1% compared to last year, along with a 3% improvement in the "Great Place to Work" question score. These enhanced results reaffirm that the Companys collective efforts to build a high-trust, high-performance workplace are making a meaningful impact.

Risk Management

At BCCL, risk management is an integral part of the Companys strategy and planning process. The Company follows an institutionalised BCCL Risk Management Framework that allows it to identify risks impacting our business and deploy organisation-wide processes for assessing, prioritising and mitigating the risks. Evaluation of opportunities and risks is a constantly evolving field.

Risk Management Committee Governance Structure

The Company has created a risk mitigation infrastructure by setting up a Risk Management and ESG Committee at the apex. The Risk Management committee determines the risks in relation to the achievement of business objectives and appropriate i isk responses. It is responsible for ensuring the effectiveness of our Companys risk management framework, which helps the organisation to respond to identified risks through acceptance, avoidance, transfer and mitigation and also seek opportunities in assorted risk scenarios. The risks are identified based on then likelihood and severity and are categoi ised into key and non-key i isks where the high and medium risks are part of key risks while the low risks are part of non-key risks.

Material Risks and Mitigation Strategies

The prioritised risks and corresponding mitigation strategies are reviewed and endorsed by the Board ESG and Risk Management Committee.

Risk Definition	Risk Vulnerabilities	1 Mitigations
	Non-compliance with existing and emerging laws and regulations may affect the business continuity and cause reputation risk, penalties and damages3	a. Continuous engagement with consultants to ensure adherence to compliances applicable to all offices, Plants, R&D Centre and depots
Existing and Emerging Rules and Regulations		b. Functional compliance reports are submitted periodically and action plans on gaps are tracked
		c. New regulations are tracked continuously and changes are discussed with relevant functions for effective implementation
		d. Statutory compliance automation tool is being evaluated with planned roll out in Q2 FY27
	a. Inflation results in increase in the price of input materials and other cost impacting profitability	a. Monthly ExCorn meeting is held to discuss the actual profitability of the previous month and the latest forecast for subsequent periods. Col lective actions are agreed upon and implemented
		b. NPD portfolio continues to scale up with further product launches planned in the coming quarters some for specific channels c. Company continues to actively explore M&A opportunities for domestic and international markets.
Macro- Economic Risk and Revenue Growth	b. Economic slowdown impacting top-line growth due to reduced consumer purchasing power affecting consumption	Acquisition of 100% stake in south India based personal care company in May25. Revenue contribution from this business is expected to increase over the years
	c. Overdependency of sales on few products/ channels/ geographies impacting revenue growth	d. The company is continuously exploring new international markets for business growth
		a. Cornpany-wide engagements with consumers to understand behaviour through surveys, U&Astudies and in-person discussions. Have also initiated Month on month consumer connect of the Marketing team to bring in consumer reality to product ideas and thinking. The company is also continuously doing brand health studies to understand consumer behaviour and take feedback.
		b. Basis the latest U&A, consumers have positioned Hair Oil in prewash nourishment with limited straddling of Pre and Post wash.
Changes in consumer preferences and competitive intensity	a. Shift in consumer tastes, preferences and behaviours driven by cultural shifts demographic changes, technological advancements, natural and sustainable brands	c. We are strengthening ADHO credentials in pre-wash nourishment and revamping our play in serums to capture a larger share of post wash category growth. Trends have also reflected growing premiumisation in Beauty & personal care, affording us the opportunity of prerniurnising the portfolio in parallel. To this end, we have put in place 3 innovation pipelines: immediate portfolio widening opportunities, longer-term prerniurnisation and cutting-edge future disruption.
	b. Rising competition from new age brands in offline and online marketplaces
		d. Increased offline marketing investment in the Modern trade Chain to entice offtake in a channel where consumer footfall is increasing. Effort also to ensure presence with relevant SKUs in major E-commerce (Large Packs), Quick Commerce (Small and Mid Packs) & Modern Trade players (Large Pack)
		e. In line with the consurnerviewing habits, have transitioned weights from traditional TV to Digital media including CTV for ADHO and other brands
		a. Connect & communication: Proactive communication is made through various initiatives like SAARATHI (1-1 field connect ), quarterly townhall, zonal level engagement, new joiner connect, Chai pe Charcha, factory level connect. These also help in identifying possible challenges and proactively addressing them.
Human Resource related risk	a. High attrition rate impacting organization stability and performance	b. Infant & general attrition: Through a structured induction prograrn (AARAMBH - 90-day orientation) along with strong significantly controlled.
	b. Lack of robust succession planning for key roles	c. Internal development: To address talent pipeline and also to provide visibility of career progression and development, the organisation is investing and committing to employees through various programs like PACE (For Middle layer in Sales), Shikhar(For Field Force) , IDPs and IJPs process
	Inadequate supply of raw materials due to disruptions in the supply chain like a. RM unavailability,	a. Detailed risk assessment for major Raw and packing material is being carried out at a frequency of once in two years and mitigation plans are been drawn up and executed. The review is done on an annual basis and any additional actions are taken up basis additional identified risk Second round is planned in Apr26 and basis which, action points will be identified.
Supply chain risk	b. Dependency on a single vendor for RM/PM supply and	b. Regular assessment of the market is done for all the major commodities and purchase actions are executed accordingly
	c. Unfavorable price fluctuations

 

Violation of ethics and business Integrity	Any significant breach to our Code of conduct by employees or business partners would lead to damage to corporate reputation and financial results Breach of cyber security/ attack or unauthorised access to IT security/ system can cause	a. Code of Conduct and business ethics training are imparted as a part of joining formalities and refresher training
		b. Mandatory digital training module on code of conduct, vigil mechanism and POSH polices with an assessment mechanism has been rolled out for all the employees.
		a. Implemented Firewall solution for 24*7 threat detection, hunting and managed service, due to which we could prevent an attack on one of our servers recently; further, security patches are being updated periodically
		b. Deployed a Web Application Firewall (WAF) to enhance security by monitoring, filtering and protecting web applications from malicious traffic
Cyber security and data protection	a. disruption of operations,	c. Implemented online (every two hours/ daily) and offline (monthly) backup of SAP and other critical applications
	b. financial loss,	d. Security access controls of SAP strengthened bv updating the architecture in June25 and mapping of authorised company devices (MAC IDs)
	c. damage to brand reputation,
	d. legal liability and leakage of valuable IPRs and personal	e. VAPT assessment had been done in FY 24 and the identified gaps have been addressed. Next assessment is planned in rnid of FY27
		f. Mandatory digital training module on cyber security with an assessment mechanism rolled out
		a. Internal and external assessments are done periodically by the plant safety team to prevent potential accidents and incidents
Disruption in operations	Any disruptions to out- manufacturing or depot operations due to potential of accidents, fire incidents, strikes occurring at company premises poses threats to employee safety, property damage and business continuity	b. A digitalised module is created for Plant safety induction and preparedness for any potential incidents for all the visitors
		c. Periodic mock drills are conducted and various safety trainings are imparted to all the people working at the plant and depots
		a. As a part of the Brand protection program, virtual awareness programs have been conducted and online training modules have been launched to sensitise the sales force to report counterfeits and copycat products to legal for actions.
Brand & reputational	Counterfeiting/ infringing/ copycat products may lead to revenue loss, loss of brand image and reputation.	b. Legal cases filed and favourable court orders received against multiple copycat products, viz. Pioneer, Enauniq, Simco, Nimsons, etc.
Risk- Counterfeit products	It also affects Consumer safety and trust amongst channel partners. Counterfeiting is more prevalent in the northern and eastern parts of India.	c. Cease & desist notices issued against copycat brands. (Action has been taken against 50+ copycat brands.) Several copycat products have been taken down on Amazon, Flipkart, Indiamart, etc.
		d. Frequent actions are taken against counterfeiters through enforcement raids with the help of police and local administration. (70+ anti-counterfeiting raids conducted in the last five years. With approx, seizure of 40000+ bottles of ADHO, 6lac+ sachets, 10+ moulds and filling machines worth crores of rupees were seized.)

Financial Review (Standalone)

			[? in Lakhs]
Particulars	FY 2025-26	FY 2026-25	YoY%
Sales (Value)	1,08,093.92	92,768.50	16.52%
EBITDA	22,886.65	13,627.73	67.96%
Profit Before Tax (PBT)	23,4-79.99	15,769.03	68.90%
Profit After Tax (PAT)	19,373.06	13,013.87	68.86%

Summarized Profit and Loss Account of the Company

			[? in Lakhs]
Particulars	FY 2025-26	FY 2024-25	YoY%
Sales (Value)	1,08,093.92	92,768.50	16.52%
Other Operating Income	1,123.23	1,507.81	-25.51%
Total	1,09,217.15	94,276.31	15.85%
Consumption	63,206.16	43,183.91	0.05%
Salaries and Wages	11,509.33	10,646.93	8.10%
Promotional Expenses	16,826.58	13,780.89	22.10%
Other Expenses	16,788.63	13,036.85	13.44%
EBITDA	22,886.65	13,627.73	67.94%
Interest and Bank Charges	159.03	53.72	196.03%
Depreciation	1,666.70	974.16	50.36%
CSR	365.68	383.76	-9.92%
Other Income	2,562.75	3,552.96	-27.87%
Profit Before Tax (PBT)	23,479.99	15,769.03	48.90%
Taxes	6,106.93	2,755.16	49.06%
Profit After Tax (PAT)	19,373.06	13,013.87	48.86%
OCI Net of Taxes	19.86	-102.64	-119.33%
Profit After Tax (after OCI)	19,392.90	12,911.23	50.20%

Key Profitability Ratios

Particulars	FY 2025-26	FY 2024-25	% Change
EBITDA/Sales	21.2%	14.7%	44%
Profit Before Tax and Exceptional Item /Sales	21.7%	17.0%	28%
PAT/Sales	17.9%	14.0%	28%
Total Comprehensive Income/Sales	17.9%	13.9%	29%
Basic Earnings PerShare (?)	14.5	9.4	54%
Diluted Earnings PerShare (?)	14.5	9.4	54%
Interest Coverage Ratio	148.7	294.6	-50%
Debt Eguity Ratio	NA	NA	NA
Profit Before Tax Margin	21.7%	17.0%	28%

Detailed Explanation of Ratios

Interest Coverage Ratio: The Interest Coverage Ratio measures how many times a Company can cover its current interest payment with its available earnings. It is calculated by dividing PBIT by finance cost.

Debt Equity Ratio: This ratio is used to evaluate a Companys financial leverage. It is a measure of the degree to which a Company is financing its operations through debt versus wholly-owned funds. It is calculated by dividing a Companys total debt by its shareholders equity.

Profit Before Tax Margin (%): Profit Before Tax Margin is a profitability ratio used to calculate the percentage of profit a Company produces from its operations. It is calculated by dividing the Profit Before Tax by Sales.

Key Balance Sheet Ratios

Particulars	FY 2025-26	FY 2024-25	% Change
Return On Capital Employed (ROCE)	29.7%	19.1%	56%
Return On Net Worth (RONW)	24.5%	15.7%	56%
BookValue PerShare (?)	60.7	57.5	6%
Debtors Turnover (in times)	14.5	15.9	-9%
Inventory Turnover (in times)	19.8	17.6	13%
Current Ratio (in times)	3.8	4.7	-19%
Quick Ratio (in times)	3.4	4.4	-22%

Detailed Explanation of Key Balance Sheet Ratios

Return On Capital Employed (ROCE): ROCE is a financial ratio that measures a Companys profitability and the efficiency with which its capital is used. In other words, the ratio measures how well a Company is generating profits from its capital. It is calculated dividing by profit before interest on long term debt, exceptional items and tax by average capital employed

dui ing the year.

Return On Net Worth (RONW): RONW is a measure of profitability of a Company expressed in percentage. It is calculated by dividing profit after tax for the year by average capital employed during the year.

Book Value Per Share: It is calculated by dividing equity at year end by number of shares outstanding at year end.

Debtors Turnover: The above ratio is used to quantify a Companys effectiveness in collecting its receivables or money owed by customers. The ratio shows how well a Company uses and manages the credit it extends to customers and how quickly that short-terrn debt is collected or is paid. It is calculated by dividing sales by average trade receivables.

Inventory Turnover: Inventory Turnover is the number of times a Company sells and replaces its inventory during a period. It is calculated by dividing sales by average inventory.

Current Ratio: The Current Ratio is a liquidity ratio that measures a Companys ability to pay short-terrn obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.

Quick Ratio: The quick ratio is an indicator of a Companys short-term liquidity position. It is calculated by dividing the current assets (excluding Inventory) by current liabilities.

Treasury Operations Highlight

During FY 2025-26, the Companys treasury operations were managed with remarkable efficiency, generating stable and consistent returns for the funds within a meticulously defined framework of investments. This strategic approach ensured the optimisation of returns while adhering to the Companys risk management and investment policies.

Inflation Trajectory and Geopolitical Impact: The trajectory of inflation is envisioned to be notably influenced by the prevailing geopolitical situation and its consequent impact on global commodity prices and logistics. The Company remains vigilant in monitoring these factors, which play a crucial role in shaping the macroeconomic environment. By staying attuned to these dynamics, the Company aims to proactively adjust its strategies to mitigate potential risks During FY 2025-26, headline inflation softened through the year, which enabled a calibrated reduction in the repo rate. However, the escalation of the Middle East crisis towards the end of the year led to a sharp spike in crude and crude-linked commodity costs, along with continued Rupee depreciation, underscoring the importance of the Companys continued vigilance on these fronts.

Strategic Allocation and Interest Rate Scenarios: The

Company will continue to dynamically adjust the allocation between bonds of varying tenors in response to the evolving interest rate scenario and prevailing liquidity conditions in the market. This tactical shift allows the Company to optimise its investment portfolio, balancing short-term and long-term gains. The primary objective is to maintain a robust and flexible investment strategy that adapts to market fluctuations while ensuring steady returns. During the year, the calibrated easing in the interest rate cycle was followed by renewed uncertainty in the closing months, as crude-led cost pressures and Rupee depreciation reshaped the outlook. The Company continues to calibrate its allocation across bond tenors to preserve flexibility as this trajectory evolves.

Ensuring Top-Notch Credit Quality: Safeguarding the credit standards of its investment portfolio is one of the core areas of focus for the Company. The Company meticulously assesses the creditworthiness of potential investments, ensuring that there is no exposure to credit risk within the portfolio. This rigorous approach to credit quality highlights the Companys devotion to preserve the integrity and stability of its investments.

Active Portfolio Management: The Company treasury is dedicated to actively managing the investment portfolio to achieve superior returns without compromising on the credit quality of the assets. This active management approach involves continuous monitoring, evaluation and rebalancing of the portfolio to align with market conditions and investment objectives. By employing sophisticated risk management techniques and leveraging market insights, the Company strives to enhance portfolio performance.

Looking ahead, the Company Treasury remains focused in its pursuit of excellence in investment management. By maintaining a strategic focus on credit quality, actively managing the portfolio and adapting to market dynamics, the Company aims to continue delivering superior returns and sustaining its reputation for excellence in treasury operations.

Dividend

The Board of Directors do not propose to declare any Final Dividend for FY 2025-26.

Company Outlook

The Company enters the year from a position of restored fundamentals and renewed clarity of direction. Flan oiling remains intrinsic to Indian consumption, reaching over nine in ten households and behaving as a mature, high-affinity and structurally profitable category. The Companys central conviction is that a strong, well-invested core brand is the foundation on which all future value creation must be built — and, over the past year, the Company has re-established on enhancing that foundation by investment to the core, restoring disciplined pricing, and sharpening execution across the portfolio.

Strategic priorities driving growth and value creation

Reinvigorating the core: Alrnond Drop remains the anchor of the Companys growth model. After a period of underinvestment, advertising has been restored to historical levels with a meaningful re-weighting towards digital, fair pricing has resumed, and distribution and promotional spends have been rationalised — actions that have returned the brand to volurne-led growth. With current category share below the Companys own historical best, management sees a clear runway to regain consumption through brand reinvigoration, refreshed communication and imagery, and superior execution rather than price-led competition. The Company aspires to sustain low double-digit revenue growth over the medium term, drawing on volume growth a couple of percentage points ahead of the category, complemented by pricing and premiumisation.

Premiumisation and category relevance: The Company believes the principal risk to the category is relevance, not price. Accordingly, it intends to lead category development at the premium end — introducing new formats, variants, benefit-led propositions and superior sensorial experiences, including solutions for consumer needs the industry has historically left unaddressed. Pursued through a disciplined cadence of experimentation, this preniiurnisation agenda is expected to strengthen the Companys right to win and drive mix-led value accretion over time.

Scaling the growth portfolio: The Company aims to broaden its engines of growth by scaling its non-core portfolio materially over the next three years. Within coconut oil, the strategy has shifted decisively from discount-led volume to profitable, eguity-led participation — narrowing the pi ice gap to the market leader to a sustainable level, and competing selectively in geographies and channels where we have relative advantage. The recently acquired Banjaras portfolio adds scale, disti ibution access in South India and entry into the cosmetics channel, and is targeted to grow robustly over the medium term.

Distribution transformation: The Company is progressively converting passively served wholesale outlets into directly serviced outlets, with the ambition of expanding direct reach meaningfully over a four-year horizon. This is being pursued incrementally and consistently rather than through a single step-change. Deeper direct distribution widens the Companys ability to execute a fuller range and to seed new products — a capability essential to monetising both premiumisation and the growth portfolio — while high-cost vanbased rural go- to-rnarket models are being replaced with a more efficient stockist-based structure. Structural tailwinds in modern trade, e-comrnerce and beauty platforms continue to support a favourable channel mix.

Balancing growth and margin

The Company approaches growth and profitability as complementary rather than competing objectives, anchored in the pursuit of healthy, sustainable and competitive growth over the medium term. Its guiding philosophy is to expand the absolute profit pool through consistent top-line momentum and disciplined cost management, rather than to optimise for any single reporting period. In an evolving demand environment and arnid input cost volatility, the Company intends to take calibrated pricing and revenue-management actions to preserve its price-value proposition and protect profitability, while continuing to invest behind its brands and growth engines.

On the demand side, the Companys categories exhibit to modest price changes, and its recent experience of restoring fair pricing while simultaneously returning to volume growth reinforces this view. GST 2.0 led rate rationalisation has improved affordability at key entry price points and supported a broader revival in category demand. At the same time, the Company remains watchful — the full impact of input- cost-led pricing on end-consumer demand is expected to become more visible in the later quarters of the year, and management will monitor demand conditions closely and will respond to situaltion as needed.

Margin enhancement going forward is expected to be led primarily by portfolio mix and premiumisation. This will be complemented by continued revenue-management initiatives

— improving realisation through more efficient channel structures and trade terms — and by operating leverage as the top line grows, with fixed-cost lines expected to reduce as a proportion of revenue even as brand investment is broadly maintained to fund both the core and new launches.

The cost environment in the near term reflects divergent and uneven trends, with pressure most pronounced in crude- linked derivatives such as liquid paraffin and packaging, and certain agricultural inputs remaining benign or deflationary

— a part of which reflects an availability-linked premium above what prevailing crude levels would ordinarily imply. The Companys inventory position moderates the immediate impact on its financials, and its working assumption is that supply-chain conditions will normalise as the year progresses, giving way to a more benign cost environment in the second half.

The net effect is a portfolio managed for balanced, compounding value creation — calibrated pricing and revenue management to defend absolute profitability through the inflationary phase; mix, premiumisation and operating leverage as the structural margin levers; and disciplined reinvestment behind the brand and new growth engines. The Company remains willing to accept modest quarter- to-quarter variability in reported margins in exchange for sustainable, competitive growth in the absolute earnings pool over the medium term.

Cautionary statements

The information in the MDA section may contain forward looking statements within the meaning of applicable securities laws and regulations. These statements reflect the BCCLs goals, plans, expectations and estimates for future events. Forward looking statements are based on certain assumptions and expectations, but there is no guarantee that they will be correct or realised by BCCL. Actual results may differ significantly from those expressed or implied in the statement owing to factors beyond BCCLs control. BCCL makes no commitment to publicly amend, change, or revise any forward- looking statements based on subsequent developments.