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 for FY25, up 3.3% year-over-year, with volume growth of 6.4%.

• EBITDA for FY25 stood at Rs 499.6 crores (17.5% margin), and PAT at Rs 370.4 crores, both showing marginal growth over last year.

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

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved, with an unmodified audit opinion from statutory auditors.

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 improved to 50.1% in FY25 from 49.1% last year.

• 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; Q4 PAT was Rs 76.3 crores.

• Cash balance at year-end was Rs 757 crores, and net working capital cycle was 18 days.

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; fiscal measures like income tax relief may support consumption with a delayed effect.

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

• Company to focus on cost efficiency, selective pricing, innovation, and scaling up recent launches.