JYOTHYLAB Q2 FY26 earnings call.
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Revenue
₹736 Cr
verified against source
Revenue YoY
4%
reported change
EBITDA
₹118 Cr
latest reported figure
Source
nse announcements
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Jyothy Labs reported Q2 FY26 revenue of ₹736 crore with modest 4% value growth and 2.8% volume growth, impacted by GST rate revision disruptions in September that affected personal care (11% of business). Gross margin compressed 210bps YoY to 48.1% due to input cost pressures and price reductions, though EBITDA margin held at 16.1% within guided range. EBITDA stood at ₹118 crore with PAT at ₹88 crore. H1 revenue was ₹1,487 crore with only 1% value growth as GST transition caused near-flat September quarter. Management targets double-digit volume and value growth by FY26 exit, expecting EBITDA margin in 16-17% range for H2 if commodity stability continues. Rural contribution remains at ~40%, general trade subdued while modern trade/e-commerce maintain double-digit growth. Key risks include prolonged HI turnaround (4-6 quarters), competitive intensity in dishwash (6-7% realization decline), personal care margin recovery, and raw material inflation (14-15% YoY increase). Company holds ₹801 crore cash with zero debt, actively pursuing M&A opportunities in adjacent categories.
Colored figures show movement against the previous available record.
Guidance to track
- Management aims to achieve double-digit volume and value growth by end of FY26, targeting similar value and volume growth with expected 2-2.5% gap favoring volume. October sales signals are positive supporting this aspiration.
- Assuming commodity prices remain stable and demand improves, EBITDA margin is expected to remain in the 16-17% range during second half, with personal care margins expected to recover to double-digits in a couple of quarters.
- Household insecticides segment focused on profitability improvement with liquid vaporizer already surpassing coils. New products (maxi aerosols, anti-mosquito rackets) showing early traction. Category expected to turn profitable in 4-6 quarters.
- Net working capital currently at 22 days (vs 19 days in March) due to higher share from modern trade/e-commerce/quick commerce. Expected to normalize to 18-20 days in medium-term as channel mix stabilizes.
Risks flagged
- Household insecticides has been unprofitable for over 3 years. Despite new product launches (maxi aerosols, anti-mosquito rackets), management indicates a 4-6 quarter timeline for profitability, representing continued drag on overall earnings.
- Analyst questioned whether personal care margins at -4% can recover to double-digit levels in Q3. Management attributed margin compression to one-time Margo brand investments, prior price increases impacting volumes, and 14-15% input cost inflation. Recovery timeline of 'a couple of quarters' leaves uncertainty.
- Management repeatedly deflected questions asking to quantify the GST disruption impact, stating it was 'difficult to put a number'. This lack of specificity makes it challenging to assess underlying demand trends and normalize Q3 expectations appropriately.
- Working capital days increased from 19 to 22 days due to growing share from modern trade/e-commerce/quick commerce (now ~1/3rd of business from ~1/3rd previously) which have longer credit cycles. This structural shift may continue to pressure cash conversion.
Key quotes
- We expect the demand environment to strengthen gradually through the second half of the year... We remain confident of delivering steady broad-based growth in the second half of FY26.
- Going forward in a couple of quarters we will be back to double digit margin... some of the actions that we have made that would help us accelerate our sales growth in personal care and the margin should swing back to double digits.
- LV has surpassed coil so that's the first milestone we have achieved... with objective to turn around the category in four to six quarters.
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