Jyothy Labs (532926) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw a favorable macro environment with easing inflation, GST rate cuts, and repo rate reductions supporting improved affordability and demand for daily essentials and home care products.

• Q3 FY26 revenue rose 5.1% year-over-year to Rs 740 crores, with volume growth of 7.2%.

• Rural markets remained strong due to good monsoons and stable farm income, while urban demand improved but remained value-driven and competitive, especially online.

• Modern trade, e-commerce, and quick commerce channels delivered strong growth, and general trade recovered across all regions.

• Un-audited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by statutory auditors with no material misstatements identified.

Financial highlights

• Q3 FY26 revenue from operations was INR 740 crores (₹73,961 lakhs), up 5.1% in value and 7.2% in volume year-on-year.

• Gross margin for Q3 was 46.5%, down from 49.8% year-on-year due to MRP cuts, lower realizations, and elevated input costs.

• EBITDA margin stood at 15%, down from 16.5% year-on-year; operating EBITDA was INR 111 crores (Rs 110.7 crores), and PAT was INR 81 crores (Rs 81.1 crores).

• For the nine months ended December 2025, revenue was INR 2,227 crores (₹2,22,688 lakhs), gross margin 47.5% (vs. 50.4% prior year), EBITDA margin 15.9% (vs. 17.8%), and PAT INR 266 crores (vs. INR 294 crores prior year).

• A&P spend was 7.7% of revenue in Q3 and 8% YTD.

Outlook and guidance

• Management expects gross margins to remain subdued for at least the next couple of quarters due to ongoing input cost inflation and competitive intensity.

• Focus on driving volume-led growth and premium product sales to achieve double-digit growth in the near term.

• Continued investment in brands and innovation as long-term growth drivers.

• No specific EBITDA margin guidance provided; management will reassess after observing market stabilization.

• Cautiously optimistic about sustained consumption recovery, especially as macro conditions improve and cost discipline continues.