Gillette India Q3 Profit Soars 37%, Declares ₹180 Dividend

Introduction

Gillette India Limited has announced a strong financial performance for the third quarter of the fiscal year 2026, ending December 31, 2025. The company reported a significant 37% year-on-year increase in net profit, driven by robust sales growth and improved operational efficiencies. In a move that signals confidence and rewards shareholders, the board also declared a substantial interim dividend of ₹180 per share, which includes a one-time special dividend. This impressive performance has been well-received by the market, with the company's stock price reacting positively to the news. The results underscore the company's strong market position and effective execution of its growth strategy in a competitive consumer goods landscape.

Stellar Quarterly Financials

The company's financial results for the December quarter highlight impressive growth across all key metrics. Revenue from operations saw a healthy increase of 15.2%, rising to ₹790 crore from ₹685 crore in the same quarter of the previous year. This top-line growth was a key contributor to the surge in profitability. Net profit for the quarter stood at ₹172.4 crore, a substantial 37% jump compared to the ₹126 crore reported in the corresponding period last year. This growth demonstrates the company's ability to not only increase sales but also enhance its profitability through effective management.

Operational Excellence and Margin Expansion

A significant aspect of Gillette India's Q3 performance was the improvement in its operational efficiency. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 36% to ₹248.2 crore, up from ₹182.4 crore in the year-ago quarter. This strong growth in operating profit led to a notable expansion in the EBITDA margin, which improved to 31.4% from 26.6% last year. The company attributed this margin expansion to a combination of improved cost efficiencies and a more favorable product mix, indicating successful strategic pricing and cost control measures.

Sustained Nine-Month Performance

The strong performance in the third quarter is consistent with the company's growth trajectory for the fiscal year. For the nine-month period ending December 31, 2025, Gillette India reported a total revenue of ₹2,307.5 crore, an increase from ₹2,112.7 crore in the same period last year. The net profit for the nine months also saw a healthy rise, reaching ₹461.8 crore compared to ₹374.9 crore in the prior year. This sustained performance over three quarters reinforces the effectiveness of the company's business strategies and its ability to execute them consistently in the market.

Grooming Segment Leads the Charge

A closer look at the segment-wise performance reveals that the grooming business continues to be the primary engine of growth for Gillette India. The grooming segment recorded revenue of ₹647.1 crore during the quarter, showing strong consumer demand for its products. The oral care segment also contributed positively with revenues of ₹142.9 crore. The sustained profitability in these segments is supported by strong brand equity, continuous investment in brand-building activities, and sustained consumer demand for its superior product offerings.

Generous Dividend for Shareholders

Reflecting its strong financial health and commitment to shareholder returns, the Board of Directors declared a significant interim dividend. Shareholders will receive ₹180 per equity share for the fiscal year 2026. This payout includes a regular interim dividend and a one-time special dividend of ₹60 per share. The company has fixed February 4, 2026, as the record date to determine shareholder eligibility for the dividend. The payment is scheduled to be completed on or before February 26, 2026, providing a substantial cash return to investors.

Positive Market Reaction

The announcement of the strong quarterly results and the generous dividend payout was met with enthusiasm from investors. Following the earnings release, shares of Gillette India gained as much as 5% in trading. The stock was last seen trading 3.7% higher at ₹8,162.5 per share. While the immediate reaction was positive, it is worth noting that the stock has been down approximately 6% over the last 12 months, and this strong performance could provide a much-needed boost to its market valuation.

Management's Strategic Focus

The company's management, led by Managing Director Kumar Venkatasubramanian, attributes the strong, balanced growth to the diligent execution of an integrated strategy. This strategy focuses on a superior product portfolio in daily-use categories where performance is a key driver of brand choice. The company remains committed to excellence in product performance, brand communication, and retail execution. This focus on productivity and creating value for consumers and customers is central to its goal of delivering sustainable and balanced growth.

Conclusion and Forward Outlook

Gillette India's third-quarter results for FY26 clearly demonstrate a company operating at a high level of efficiency and market effectiveness. The 37% surge in net profit, coupled with a 15% revenue increase and expanding margins, paints a picture of robust health. The declaration of a ₹180 per share dividend further solidifies its investor-friendly credentials. Looking ahead, investors will be watching to see if the company can maintain this growth momentum and margin profile in the coming quarters. The upcoming dividend payment on February 26, 2026, will be a key event for shareholders.