Jyothy Labs (532926) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 736 crore (₹73,606 lakhs), up 0.4% year-over-year, with volume growth of 2.8%; H1 FY26 revenue reached INR 1,487 crore (₹1,48,727 lakhs), up 0.9% year-over-year, with 3.2% volume growth.

• Growth was nearly flat due to GST rate revision disruptions, but early Q3 demand signals are positive and modern trade, e-commerce, and quick commerce channels maintained double-digit growth.

• Lower GST rates on personal care products (11% of business) were fully passed to consumers, causing temporary channel disruption but cost-neutral for the company.

• New product launches in fabric care and dishwash segments performed well; premiumization and innovation remain key focus areas.

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

Financial highlights

• Q2 revenue from operations: INR 736 crore (₹73,606 lakhs), value growth 0.4%, volume growth 2.8% year-on-year; H1 FY26 revenue: INR 1,487 crore (₹1,48,727 lakhs), value growth 1%, volume growth 3.2%.

• Gross margin for Q2: 48.1%, down from 50.2% YoY; H1: 48% vs 50.8% last year.

• EBITDA margin for Q2: 16.1%, H1: 16.3% (vs 18.4% YoY); PAT for Q2: INR 88 crore (₹8,776 lakhs), H1: INR 184.6 crore (₹18,455 lakhs).

• Net cash from operations improved to INR 196.5 crore; cash balance at INR 801 crore as of September 30, 2025, with zero debt.

• Working capital days stable at 22 as of September 2025; ROE (excluding goodwill) was 29.1%.

Outlook and guidance

• Expect gradual demand recovery and broad-based growth in H2 FY26, supported by fiscal measures and stable macro conditions; sequential growth expected as GST impact normalizes.

• EBITDA margin guidance for H2: 16%-17%, assuming stable commodity prices and improving demand.

• Aim for double-digit volume growth by year-end, with value growth lagging by about 2.5% due to lower realizations.

• Modern and digital channels anticipated to drive growth, with general trade recovering gradually.

• Several new product launches planned for H2 and next year, especially in fabric care.