Jyothy Labs (532926) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw a mixed operating environment with inflationary pressures, subdued urban sentiment, and resilient rural markets, with revenue reaching ₹751 crore, up 1.4% year-on-year and volume growth of 3.6%.

• Urban consumers continued to downtrade or defer non-essential purchases, but early signs of recovery emerged from July onwards.

• The company expects a gradual, broad-based recovery, supported by a favorable monsoon, government fiscal measures, and RBI rate cuts.

• Modern trade, e-commerce, and quick commerce channels sustained double-digit growth, while general trade faced volume pressures.

• Un-audited financial results for the quarter ended June 30, 2025, were approved and reviewed by statutory auditors with no material misstatements identified.

Financial highlights

• Revenue from operations for Q1 FY26 was ₹751 crore (₹75,121 lakhs), up 1.4% year-on-year and sequentially higher than the previous quarter.

• Gross margin stood at 48%, down 330 bps year-on-year due to input cost pressures and increased competition.

• EBITDA margin was 16.5%, with operating EBITDA at ₹124 crore and PAT at ₹97 crore.

• Advertisement and promotion spend was 7.8% of revenue, slightly moderated to reflect market context.

• Net profit for the quarter was ₹9,679 lakhs, compared to ₹10,183 lakhs year-on-year.

Outlook and guidance

• Q3 and Q4 are expected to show meaningful improvements, driven by festive season urban demand, new product traction, and cost efficiency gains.

• The company remains focused on innovation, category development, digital execution, and distribution expansion.

• H2 margins are expected to improve, with full-year EBITDA margin guidance between 16% and 17%.

• Demand is expected to recover gradually from Q3, with new launches and sustained brand investment planned.

• Following the sale of its only subsidiary, the company will present only standalone financial results from Q1 FY26 onward.