Jyothy Labs (532926) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached ₹751 crore, up 1.4% year-over-year, with 3.6% volume growth; net profit was ₹97 crore, down from ₹101.8 crore year-over-year.

• The quarter saw a mixed environment with inflationary pressures, fragile urban sentiment, and resilient rural markets.

• Un-audited financial results for the quarter ended June 30, 2025, were approved with no material misstatements.

• The company expects gradual recovery from Q3 onwards, supported by favorable monsoon, government measures, and improving sentiment.

Financial highlights

• Revenue from operations was ₹751 crore, with 1.4% value growth and 3.6% volume growth year-over-year.

• Gross margin was 48%, down 330 bps year-over-year due to input cost pressures and competition.

• EBITDA margin held at 16.5% (₹124 crore), with PAT at ₹97 crore.

• Advertisement and promotion spend was 7.8% of revenue, slightly moderated from the prior year.

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

Outlook and guidance

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

• Full-year EBITDA margin guidance remains between 16% and 17%.

• Innovation and new product launches are expected to increase in H2, coinciding with improved demand.

• Only standalone financial results will be presented from Q1 FY26 onward after the sale of the only subsidiary.