Jyothy Labs Ltd

Excise Duty Order and appeal

• Date of awareness: August 24, 2026, of an Excise Duty Order under Section 11A(10).
• Order relates to Apr 2016–Jun 2017 period with duty demand of Rs 9.69 crore.
• Penalty Rs 0.97 crore and redemption fine Rs 9.69 crore; interest as applicable.
• Dispute stems from HSN classification interpretation for the product.
• Previous favorable order at another location; not challenged at higher authorities.
• Company to file an appeal before appellate authority.
• No material impact on financials or operations anticipated.
• Annexure A disclosure attached as per Regulation 30.

Financial Performance

• Excluding Pril and FA, revenue grew 8.1% in value terms; 5.3% in volume.
• Gross margin 38.5%, down 950 bps YoY due to high input costs.
• EBITDA margin 8.4%, down 820 bps YoY.
• A&P spend 6.5% of revenue, vs 10.8% in same quarter last year.
• Net cash balance about INR 850 crores.
• Fabric Care value growth over 14%, volume growth 10%.
• Home Care growth 2.4% YoY excluding Pril; Dishwash impacted by Pril exit.
• Exo Liquid launched; progress encouraging but at early scale-up; end-year visibility.
• Maxo incense sticks launched in July; priced at parity with competition.
• Personal Care remains subdued; recovery expected; input costs rising.

Segment Trends & Operating Update

• Fabric Care continued momentum; value growth >14%, volume growth 10% in Q1.
• Home Care growth 2.4% YoY excluding Pril; dishwash impacted by Pril exit.
• Personal Care subdued; expected stronger pickup in coming quarters.
• Exo portfolio: Exo Liquid scaling up gradually; fuller update by year-end.
• Maxo expansion: incense sticks launched; competition parity pricing.
• Channels: Modern Trade & e-commerce among fastest-growing; GT muted due to urban demand.
• Three-segment reporting introduced: Fabric Care, Home Care, Personal Care; comparatives restated.
• Pricing strategy: calibrated to balance cost inflation and consumer affordability.
• A&P reductions; channel investments to support long-term growth.

Balance Sheet and Cash Flow

• Net cash balance about INR 850 crores.
• Distributor stock maintained at 15–20 days.
• Payment terms: hygiene of business maintained; general trade with advanced payments.

Capex & New Products

• Ind AS 108 alignment; segment reporting revised from Q1 FY27.
• R&D and cost-optimization investments ongoing; Exo expansion.
• M&A: looked at assets; four divisions; two not aligned; no forward action yet.

Outlook & Guidance

• FY27, excluding Pril, double-digit revenue growth expected.
• H2 should be substantially better than H1; depends on demand momentum and commodity prices.
• Pricing to remain calibrated; top-line growth to drive margin recovery.

Q&A Highlights

• Total price increases since the start of the war around 4%–4.5%; 3% in Q1; balance in Q2.
• Fabric Care price increases closer to 5% portfolio; Dishwash pricing competitive.
• Working capital hygiene: general trade paid upfront; distributor stock 15–20 days.
• M&A: exploring assets; filters stringent; not into acquisitions just for growth.
• Pril cooling-off: Henkel recall; no renewal; court matter; cannot comment beyond this.
• Double-digit growth aspiration for FY27; ex Pril/FA; high single-digit volume growth; H2 better.
• Nitin Shakdher: reduce crude dependence; R&D underway.

Meeting Details

• Date and time: August 12, 2026 at 16:00 IST.
• Type: virtual group conference call with analysts/investors.
• Organizer: Jyothy Labs Limited.
• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026 and way forward.

Participants

• Key participant: Head – Legal & Company Secretary (company representative).

Purpose

• Purpose: update on unaudited results and forward strategy.

Additional Notes

• Audio recording of the conference call is available for download.

Transaction details

• Board approved transfer and assignment of Jammu facility leasehold rights to M/s Aikyam Flexipack Private Limited.
• Jammu facility covers about 15 kanals at SIDCO Industrial Complex, Bari Brahmana, Jammu & Kashmir.
• Consideration for transfer is Rs 9.93 crores approx.
• Proposed completion by 31 March 2027, subject to mutual conditions.

Business Overview

• Core business: Home Care and Personal Care; FY25-26 revenue ₹2,944 cr.
• Operations: 23 manufacturing plants, 4 million outlets, 1.4 million direct reach, 10,000+ channel partners.
• New 3-segment structure: Fabric Care, Home Care, Personal Care.
• Market positioning: rural resilience and value-focused consumer behavior.

Key Operational Highlights

• Q1 FY27 revenue ₹773 crore; up 3% YoY.
• Excluding Pril & Fa, value growth 8.1%; volume 5.3%.
• Gross Margin 38.5% vs 48% prior year.
• EBITDA margin 8.4% (₹64.7 cr) vs 16.5%.
• PAT ₹47.6 cr versus ₹96.8 cr.
• A&P spend ₹50.6 cr (6.5% of revenue), down from ₹58.9 cr.
• Fabric Care ₹399 cr; Home Care ₹280 cr; Personal Care ₹94 cr.

Financial Performance

• Revenue growth 3%; gross margin pressure from input inflation.
• PAT margin 6.2% vs 12.9% prior year.
• A&P to revenue 6.5% vs 7.8%.

Capital Structure & Liquidity

• No capital-structure actions disclosed in this update.
• Shareholding pattern as of 30 June 2026 presented.

Strategic Priorities & Outlook

• FY27 approach: Defend where we lead; Build where we grow.
• Margin recovery to be progressive, depending on inflation and geopolitical risks.
• Scale recent NPDs: Exo Dishwash Liquid, Maxo Incense Sticks.
• Strengthen salience in Modern Trade, e-commerce, quick commerce.
• Operational excellence, supply-chain efficiency, and GT productivity.

Risks & Mitigation

• Gross margin pressured by raw material and packaging inflation.
• Competitive intensity via price-offs, promotions, and value packs.
• Demand mix: rural resilience; urban demand subdued.
• Mitigation: strengthen distribution, value-pack strategies, and cost controls.

Governance & Leadership

• Shreyas Trivedi serves as Head – Legal & Company Secretary.

Financial highlights

• Revenue ₹773 crore, up 3.0% YoY.
• Excluding Pril and Fa, revenue up 8.1%, volume up 5.3%.
• Operating EBITDA ₹64.7 crore, margin 8.4%.
• Profit After Tax ₹47.6 crore.

Segment performance

• Fabric Care: 14.1% value growth, 10.2% volume growth.
• Home Care: 2.4% growth excluding Pril; Exo Dishwash Liquid launched.
• Maxo Incense Sticks launched in Household Insecticides.

Outlook and strategic actions

• Margins may improve as inflation moderates; FY27 growth prospects cautiously optimistic.
• Innovation, premiumisation, and calibrated pricing support long-term growth.

Business Overview

• Core business: Home Care and Personal Care with nationwide distribution and 23 manufacturing plants.
• FY25-26 revenue ₹2,944 crore; 4 million outlets pan-India; 1.4 million direct reach.
• New three-segment structure: Fabric Care, Home Care, Personal Care.

Financial Performance

• Q1 FY27 revenue ₹773 crore, up 3% YoY.
• Gross margin 38.5% vs 48.0% year-ago.
• Operating EBITDA margin 8.4% (₹64.7 crore) vs 16.5% (₹124.2 crore).
• PAT ₹47.6 crore vs ₹96.8 crore.
• Revenue ex-Pril & Fa grew 8.1%; volume +5.3%.
• A&P expense ₹50.6 crore, 6.5% of revenue, down from ₹58.9 crore.
• Category mix: Fabric Care +14.1%; Home Care ex-Pril +2.4%; Personal Care +0.4%.

Operational Highlights & Initiatives

• Exo Dishwash Liquid launched in Rest of India and South.
• Maxo Agarbatti launched; digital presence strengthened.
• Margo refreshed with Raashii Khanna; Roz Ki Achhi Aadat campaign.
• New formats: Exo bio-enzymatic dishwash liquid; Maxo coils expansion.
• FY27 emphasis on Modern Trade, e-commerce, quick commerce with sharper packs.
• Operational excellence and supply chain efficiency.
• Scale NPDs: Exo Dishwash Liquid and Maxo Incense Sticks.

Strategy & Outlook

• FY27 approach: Defend where we lead; build where we grow.
• Margin recovery depends on inflation and geopolitical risks.
• Scale NPDs: Exo Dishwash Liquid and Maxo Incense Sticks.
• Focus on operational excellence, supply chain efficiency, GT productivity.
• Sharpen pack-price and channel execution in key growth channels.

Risks

• Inflation and geopolitical risks could pressure margins.
• Input cost volatility in raw materials and packaging.

Financial Highlights

• Revenue from operations: ₹77,340 lakhs in Q1 FY27; up from ₹75,121 in Q1 FY26.
• Total income: ₹79,105 lakhs in Q1 FY27; ₹77,065 in Q1 FY26.
• Net profit: ₹4,764 lakhs in Q1 FY27; ₹9,679 in Q1 FY26.
• Basic and diluted EPS: ₹1.30 each.
• Unaudited results with Limited Review; board approved on Aug 12, 2026.
• Segment revenue: Fabric Care ₹39,889; Home Care ₹28,019; Personal Care ₹9,432.
• Segment PBT: Fabric Care ₹3,833; Home Care ₹814; Personal Care ₹1,267.
• Profit before tax: ₹6,498 lakhs; finance cost ₹120; unallocable exp ₹902; income ₹1,606.
• Tax expense: ₹1,734; current tax ₹1,252; deferred tax ₹482.
• Total comprehensive income: ₹4,721 lakhs.

ESG rating update

• CRISIL ESG rating 'CRISIL ESG 62' (Strong) assigned to Jyothy Labs for FY2025-26.
• Jyothy did not engage CRISIL; rating based on public-domain data.
• Info also disclosed on Jyothy Labs website.