Jyothy Labs reported 5.1% value growth and 7.2% volume growth for Q3 FY’26, driven primarily by volume despite overall price deflation due to MRP cuts. Management expressed cautious optimism about a consumption revival, especially in urban markets, but noted sustained gross margin pressure due to competitive intensity, particularly in Dishwash. The company confirmed that the Divestment of the JKBL joint venture resulted in a ₹4 crore loss.
Q3 FY’26 Financial and Volume Performance
Jyothy Labs announced its earnings for the quarter and nine months ended December 31, 2025. For Q3, Revenue from operations stood at INR740 crores, reflecting a value growth of 5.1% year-on-year, contrasted with a stronger volume growth of 7.2%. This gap between value and volume was attributed to MRP reductions and higher grammages across categories.
For the 9-month period ending December 2025, revenue grew by 2.2% in value terms, while volume expanded by 4.5%.
Segmental Highlights
Fabric Care showed resilience with 9.2% value growth, led by volume. The Liquid Detergent portfolio performed strongly, with new launch Dr.Wool being well-received.
The Dishwash segment declined 1.7% in value, despite achieving over 6% volume growth, driven by competitive price cuts and extra grammages. Management confirmed that competitive intensity remains high in this space.
The Personal Care segment returned to profitable, volume-led growth, increasing by nearly 11% in value. The focused turnaround plan for the HI (Household Insecticide) segment is showing results, posting 12.6% value growth driven by volume in liquid vaporizers, with losses minimal this quarter.
Margin Outlook and Strategy
Gross margin for Q3 was 46.5%, down 330 basis points year-on-year, pressured by MRP cuts and elevated input costs (LABSA, SLES). Operating EBITDA margin stood at 15%, lower by 150 basis points compared to the previous year’s Q3.
Management stated that margin pressure is expected to remain subdued over the next couple of quarters. The current strategy remains focused on volume-led growth in the near term to recover from earlier demand slowness. While A&P spends were at 7.7% of revenue, the long-term range is expected to be maintained between 8% to 9%.
Divestment and Future Growth
Regarding the divestment of the JKBL joint venture, management noted that the decision was prudent after 10 years of challenging market conditions in Bangladesh, resulting in a final loss of about INR4 crores. The focus is now entirely on domestic growth and select profitable export markets.
In terms of distribution, the company is on track to close FY’26 with 14 lakh direct retail outlets, an addition of 1 lakh outlets for the year, reflecting a pan-India expansion.
Source: BSE
