P & G Hygiene Q1 FY27 Results (NSE: PGHH)
Signal: Revenue declined
The read
Q1FY27 was a weak quarter: revenue fell nearly 5% YoY, gross margin compressed sharply by ~636bps (COGS ratio spiked to 42.85% from 36.49%), and A&P spend ratio rose to 9.35% of revenue. EBITDA margin dropped to 18.77% from 22.65% a year ago. PAT fell 34% YoY, worsened by a higher effective tax rate. This marks a reversal from the strong 3-year CAGR trajectory (27% revenue, 34% profit) and is the first quarter of YoY decline after several quarters of growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹891.46 Cr | -4.86% | -5.29% |
| EBIT | ₹167.36 Cr | -22.16% | |
| Net profit | ₹126.27 Cr | -34.25% | |
| EPS | ₹38.9 | -34.26% | |
| EBIT margin | 18.77% |
P&L walk
Revenue declined 4.86% YoY; gross margin compressed significantly (cost of materials + purchases + inventory change rose to 42.85% of revenue vs 36.49% a year ago); A&P spend increased to 9.35% of revenue from 7.33%, adding to margin pressure; EBITDA margin fell 388bps YoY; PAT fell 34.25% YoY impacted by higher tax charge as well.
Segments
The company operates a single reportable segment (health and hygiene products) — no segment divergence to note.
Key concerns
- Revenue declined 4.86% YoY — first quarterly drop in recent series, possible demand slowdown or competitive pressure.
- Gross margin compression of ~636bps YoY (COGS ratio 42.85% vs 36.49%) — input cost inflation or pricing weakness.
- A&P spend as % of revenue increased to 9.35% from 7.33% — higher marketing investment did not protect revenue or market share.
- PAT fell 34.25% YoY — operating deleverage combined with higher tax rate.
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