Jyothy Labs (532926) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 736 crore, up 0.4% year-over-year, with volume growth of 2.8%; H1 FY26 revenue reached INR 1,487 crore, up 0.9%, and volume growth of 3.2%.

• Gross margin declined to 48.1% in Q2 FY26 from 50.2% a year ago; EBITDA margin for Q2 was 16.1%, and PAT was INR 88 crore, down 16.4% year-over-year.

• Modern trade, e-commerce, and quick commerce channels maintained double-digit growth, while general trade was subdued.

• Lower GST rates on personal care (11% of business) were fully passed to consumers, remaining cost-neutral.

• 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; H1 FY26 revenue: INR 1,487 crore; Q2 net profit: INR 88 crore; H1 net profit: INR 184.6 crore.

• Gross margin for Q2: 48.1%, down 210 bps year-on-year; H1: 48% vs 50.8% last year.

• EBITDA margin for Q2: 16.1%; H1: 16.3% vs 18.4% last year.

• Net cash from operations improved to INR 196.5 crore; cash balance at INR 801 crore with zero debt.

• Working capital days stable at 22 as of September 2025.

Outlook and guidance

• Gradual demand improvement and broad-based consumption recovery expected in H2 FY26.

• EBITDA margin expected to remain in the 16%-17% range in H2, assuming stable commodity prices.

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

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

• Continued focus on brand investment and innovation.