Jyothy Labs (532926) Q4 25/26 earnings summary

Executive summary

• FY 2026 saw 3.5% revenue growth to INR 2,944 crore, with 6% volume growth despite muted demand and volatility in the FMCG sector; growth momentum improved in H2, led by Fabric Care and innovation in liquid detergents.

• Household Insecticides moved towards profitability, aided by new formats and improved product mix, with losses reduced significantly.

• Modern Trade, E-commerce, and Quick Commerce channels grew strongly, expanding direct reach to over 1.4 million outlets.

• Audited financial results for FY 2025-26 were approved with an unmodified opinion; a final dividend of INR 3.5 per share was recommended.

• Cash balance stood at INR 997-1,000 crore, with operating working capital at 15 days.

Financial highlights

• FY 2026 revenue was INR 2,944 crore (₹294,429 lakhs), up 3.5% year-over-year; Q4 revenue was INR 717 crore (₹71,741 lakhs), up 7.7%.

• Gross margin for FY 2026 was 47% (down 320 bps YoY); Q4 gross margin at 45.2% (down 400 bps YoY).

• EBITDA margin for FY 2026 was 15.3% (down 230 bps YoY); Q4 EBITDA margin at 13.5% (down 330 bps YoY).

• PAT for FY 2026 was INR 333.2 crore (₹33,319 lakhs), down 10.2% YoY; Q4 PAT at INR 67.5 crore (₹6,752 lakhs).

• A&P spend reduced to 7.7% of net sales from 8.4% last year.

Outlook and guidance

• Margins expected to remain under pressure due to lag in passing on input cost increases, especially in lower unit packs.

• Selective price increases underway, with full impact expected in Q1 FY 2027; further actions possible depending on input cost trends.

• Growth prioritized over margins, focusing on scaling new products, improving trade productivity, and sustaining volume growth.

• No specific margin guidance for FY 2027 due to high volatility in input costs and external environment.

• The company is monitoring regulatory changes, particularly new Labour Codes.