Jyothy Labs (532926) Q4 24/25 earnings summary

Executive summary

• FY25 was challenging for the FMCG sector, with a slowdown from Q2 due to rising living costs, sluggish urban income growth, and increased price sensitivity among consumers.

• Achieved consolidated revenue of Rs 2,847 crores in FY25, up 3.3% year-over-year, with volume growth of 6.4%.

• EBITDA reached Rs 499.6 crores (17.5% margin), and PAT stood at Rs 370.4 crores, both showing marginal growth over last year.

• Urban demand remained soft, while rural demand showed signs of recovery but not enough to offset urban weakness.

• The company remains optimistic about long-term growth, focusing on affordable formats, portfolio expansion, and cost management.

Financial highlights

• Q4 consolidated revenue from operations was Rs 667 crores, up 1.1% YoY, with 4% volume growth.

• FY25 value growth was 3.3%, with 6.4% volume growth.

• Gross margin for FY25 improved to 50.1% from 49.1% last year; Q4 gross margin was 49.2%.

• Q4 operating EBITDA margin improved to 16.8% from 16.4% YoY; FY25 EBITDA margin rose to 17.5%.

• PAT for FY25 rose marginally to Rs 370.4 crores.

Outlook and guidance

• H1 FY26 expected to remain challenging, with mid-single-digit volume growth; H2 anticipated to see improvement, targeting double-digit volume growth.

• EBITDA margin guidance for H2 FY26 is 16%-17%, with some margin pressure expected in H1.

• Urban demand expected to remain subdued in H1 FY26 due to macroeconomic pressures.

• Effective tax rate expected to remain between 23%-24% for FY26-27.

• Focus remains on cost efficiency, selective pricing, innovation, and scaling up recent launches.