Jyothy Labs Q1 FY26 Results (NSE: JYOTHYLAB)
Signal: Margin pressure
The read
The trajectory weakened sharply after Q4FY25's 17% margin: Q1FY26 revenue grew only 2.95% YoY, while gross margin contracted 947bps to 38.55% and EBITDA margin contracted 847bps to 10.65%, causing PAT to fall 50.78% to ₹4,764 lakh. The decline is broad enough to matter, with Fabric Care result down 43.02% and Home Care result down 82.41%; the filing does not identify whether the gross-margin shock was input-cost, pricing or mix-led.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹773.4 Cr | +2.95% | +7.81% |
| EBIT | ₹66.18 Cr | -48.66% | |
| Net profit | ₹47.64 Cr | -50.78% | |
| EPS | ₹1.3 | -50.76% | |
| EBIT margin | 10.65% |
P&L walk
Standalone revenue increased 2.95% YoY to ₹77,340 lakh, but gross margin contracted 947bps to 38.55% and EBITDA fell 42.66% to ₹8,233 lakh, driving PAT down 50.78% to ₹4,764 lakh; the pressure was concentrated in material costs and Home Care profitability.
Segments
Home Care was the main drag: revenue fell 8.97% YoY to ₹28,019 lakh and segment result fell 82.41% to ₹814 lakh, while Fabric Care revenue grew 14.14% to ₹39,889 lakh but result still declined 43.02% to ₹3,833 lakh; Personal Care was comparatively resilient with revenue up 0.42% and result up 14.66%.
Key positives
- Revenue increased 2.95% YoY to ₹77,340 lakh despite Home Care revenue declining 8.97% YoY, supported by Fabric Care growth of 14.14%.
- Personal Care segment result rose 14.66% YoY to ₹1,267 lakh, providing the only reported segment profit improvement.
- Employee benefits expense rose only 1.79% YoY to ₹8,826 lakh and advertising and sales promotion expense declined 13.98% to ₹5,064 lakh, limiting opex escalation.
Key concerns
- Gross margin compressed 947bps YoY to 38.55%, with raw materials consumed rising to 68.57% of revenue from 47.09%; the filing does not disclose the driver or the extent of pass-through.
- EBITDA fell 42.66% YoY to ₹8,233 lakh and EBITDA margin fell 847bps to 10.65%, despite revenue growth of 2.95%, indicating severe gross-profit absorption rather than operating leverage.
- Home Care segment result fell 82.41% YoY to ₹814 lakh on an 8.97% revenue decline, materially weakening the group's second-largest revenue segment.
Research and educational content only. Not investment advice.