This article first appeared on GuruFocus .
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Revenue from Operations:INR736 crore for Q2, with 0.4% value growth and 2.8% volume growth year-on-year.
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Gross Margin:48.1% for the quarter, a decrease of 210 basis points year-on-year.
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EBITDA Margin:Maintained at 16.1% for Q2.
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Operating EBITDA:INR118 crore for Q2.
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Profit After Tax (PAT):INR88 crore for Q2.
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H1 Revenue from Operations:Over INR1,487 crore, with 1% value growth and 3.2% volume growth.
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H1 Gross Margin:48%, compared to 50.8% in the previous year.
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H1 Operating EBITDA Margin:16.3%, down from 18.4% last year.
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Effective Tax Rate:25% for H1, expected to remain between 24% and 25% for FY26.
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Net Working Capital:22 days as of September 30, 2025, compared to 19 days as of March 31, 2025.
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Net Cash Generation from Operations:INR196.5 crore, up from INR188.9 crore last year.
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Cash Balance:INR801 crore with zero debt.
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Warning! GuruFocus has detected 3 Warning Signs with FRA:1QT.
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Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Jyothy Labs Ltd ( BOM:532926 ) reported a volume growth of 2.8% year-on-year for Q2 FY26, indicating resilience despite market disruptions.
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The fabric care segment showed strong performance with a value growth of 6.1% and high single-digit volume growth, driven by brands like Henko, Ujala, MoreLight, and Mr. White.
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Modern trade, e-commerce, and quick commerce channels maintained double-digit growth, highlighting the company's successful adaptation to changing consumer purchasing behaviors.
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The company has a strong cash balance of INR801 crore and zero debt, positioning it well for future growth and investment in innovation.
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Jyothy Labs Ltd ( BOM:532926 ) is actively expanding its product portfolio with new launches such as Dr. Wool and Ujala Young & Fresh, aiming to capture niche markets and drive future growth.
Negative Points
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The GST rate revision in September 2025 caused significant disruptions, leading to nearly flat growth in the September quarter.
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Gross margin for Q2 FY26 was 48.1%, a decrease of 210 basis points year-on-year, primarily due to input cost pressures and price reductions.
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The personal care segment was notably impacted by the GST transition, affecting overall performance and requiring time to normalize.
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The household insecticides segment experienced muted growth, with a focus on profitability improvement expected to take four to six quarters.
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Net working capital increased to 22 days as of September 30, 2025, compared to 19 days as of March 31, 2025, due to a shift in channel mix towards modern trade and e-commerce.
Q & A Highlights
Q: What is the outlook for the new beauty soap brand Jovia, considering the previous brand Margo's performance? A: Moothedath Jyothy, Executive Chairman and Managing Director, stated that Margo Neem Naturals is performing reasonably well, and improvements are expected in Q3. Both Jovia and Margo are anticipated to deliver better results from Q3 onwards, with significant contributions expected in the second half of the year.
Q: How does Jyothy Labs plan to expand its product reach beyond Southern India? A: Pawan Agarwal, CFO, clarified that Jyothy Labs is expanding its product portfolio on a pan-India basis, with revenues from Southern India decreasing from 40% to 33% over the years. Brands like Exo, Pril, Margo, and Ujala are expanding nationally, countering the perception of being a Southern India-focused company.
Q: What are the revenue growth aspirations for the second half of FY27, considering increased competitive intensity? A: Moothedath Jyothy expressed optimism about positive indicators and October sales, aiming for double-digit volume growth by the end of the year. Pawan Agarwal noted a 2% to 2.5% gap between value and volume growth due to market conditions and lower average realizations.
Q: How is Jyothy Labs addressing the impact of GST changes on its personal care portfolio? A: Pawan Agarwal explained that the GST reduction primarily affected personal care, causing channel disruptions and reluctance to place orders until tax-paid stock was liquidated. Despite the category being only 11% of the business, the confusion led to destocking across segments.
Q: What steps are being taken to make the Home Insecticides segment profitable? A: Pawan Agarwal stated that the focus is on turning around the segment by investing in profitable categories like liquid vaporizers, Maxo Aerosols, and Anti-Mosquito racquets. The company aims to achieve profitability in this segment within four to six quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
