Gillette India Q1 FY27 Results (NSE: GILLETTE)
Signal: Steady quarter
The read
Gillette delivered 10.8% revenue growth with gross margin expanding 368bps YoY (notably on lower input costs), but EBITDA margin only +30bps as the company slashed A&P spending by 24% YoY (from 19.3% to 13.2% of sales) — a sustainable trade-off for a consumer brand is questionable; PAT growth decelerated to 9.4% from 21% in FY26, and QoQ revenue declined 1.1% indicating sequential softness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹783.02 Cr | 10.8% | -1.1% |
| EBIT | ₹215.04 Cr | 9.5% | |
| Net profit | ₹159.45 Cr | 9.4% | |
| EPS | ₹48.93 | 9.4% | |
| EBIT margin | 27.0% |
P&L walk
Standalone only; consolidated not applicable (no subsidiaries).
Segments
Grooming segment (80% of revenue) grew 9% YoY with PBIT margin expanding 230bps to 27.6%, while Oral Care (20% of revenue) grew 19% YoY with PBIT margin compressing 390bps to 24.4% — overall momentum remains healthy, driven by grooming's profitability.
Key positives
- Gross margin expanded 368bps YoY to 62.8%, driven by lower raw material cost as % of revenue (37.2% vs 40.9% YoY).
- Grooming segment PBIT grew 13% YoY with margin improvement to 27.6%.
- Finance costs remain negligible at ₹102 lakh (0.1% of revenue), confirming debt-free status.
Key concerns
- A&P spending cut to 13.2% of sales vs 19.3% YoY — may be a driver of near-term margin but risks brand health and volume momentum.
- Revenue declined 1.1% QoQ, despite robust YoY growth, suggesting potential demand softness entering the quarter.
- EBITDA margin expansion (+30bps YoY) was modest vs gross margin expansion (+368bps), as operating deleverage from higher employee cost % (+0.9pp) and lower other income offset input benefits.
Research and educational content only. Not investment advice.