Jyothy Labs reports 12.4% underlying Q2 sales growth, margins fall

Jyothy Labs recorded 12.4% value growth excluding Pril and Fa in Q2FY27, compared with reported revenue growth of 3.3% to Rs 760 crore, showing the effect of Pril and Fa sales in the prior-year comparison. Operating EBITDA margin fell to 2.5% from 16.1% amid raw-material and packaging-cost inflation.

How fast did Jyothy Labs' underlying sales grow in Q2FY27?

Jyothy Labs' sales excluding Pril and Fa grew 12.4% by value and 8.1% by volume in Q2FY27. Reported revenue from operations increased by 3.3% to Rs 760 crore from Rs 736 crore in the corresponding September quarter of the prior year. The 9.1-percentage-point difference between reported and excluding-Pril-and-Fa value growth quantifies the portfolio effect on the headline revenue rate.

The presentation states that Pril and Fa sales were included only up to 31 May 2026. Therefore, the 12.4% figure is the company's disclosed growth measure excluding those brands, while the Rs 760 crore reported figure reflects the effect of their inclusion in the comparison. The disclosed 8.1% volume growth shows that the sales increase excluding Pril and Fa was also supported by volume.

Operating EBITDA means earnings before interest, tax, depreciation and amortisation. While revenue rose by Rs 24 crore year on year, operating EBITDA declined by Rs 99.1 crore to Rs 19.2 crore. The presentation reported that gross margin declined sharply during Q2FY27, alongside the divergence between revenue growth and operating-profit performance.

Why did reported Home Care revenue fall when growth excluding Pril was positive?

Jyothy Labs reported Home Care growth of negative 7.1% in Q2FY27 with Pril included, but growth of 15.3% without Pril. The 22.4-percentage-point difference shows how the reported Home Care comparison differed from the disclosed result excluding Pril; the page footnote says the relevant comparison includes Pril and Fa sales up to 31 May 2026.

The category data also showed 10.4% growth in Fabric Care and 11.2% growth in Personal Care in Q2FY27. The presentation identifies Ujala and Henko with Fabric Care, Exo and Maxo with Home Care, and Margo with Personal Care. These category growth rates exceeded the company's reported 3.3% revenue growth, while Home Care including Pril was the exception at negative 7.1%.

Over longer periods, the disclosed category rates were lower than the current quarter's Home Care result excluding Pril. Home Care without Pril reported a three-year compound annual growth rate, or CAGR, of 3.3% and a four-year CAGR of 4.7%, versus 15.3% growth in Q2FY27. Fabric Care's three-year and four-year CAGRs were 5.5% and 6.9%, respectively, while Personal Care's were 0.5% and 5.6%.

Did the adjusted growth rate continue through H1FY27?

Jyothy Labs reported 10.2% value growth and 6.2% volume growth excluding Pril and Fa in H1FY27, against reported revenue growth of 3.1% to Rs 1,533 crore. Revenue in the corresponding prior-year half was Rs 1,487 crore, so reported sales increased by Rs 46 crore while the excluding-Pril-and-Fa value-growth rate was 7.1 percentage points higher than reported growth.

The first-half category data show the same broad pattern as the quarter, although Home Care growth excluding Pril was lower at 8.8%. Home Care including Pril declined 8.1% in H1FY27. Fabric Care rose 12.3%, exceeding both the Home Care result excluding Pril and Personal Care's 5.4% growth during the half year.

The change from Q2FY27 to H1FY27 is also visible in the excluding-Pril-and-Fa measures. Value growth was 12.4% in Q2FY27 versus 10.2% in H1FY27, while volume growth was 8.1% versus 6.2%. Because H1FY27 includes the September quarter and Pril and Fa sales were included only through 31 May 2026, the disclosed half-year and quarterly measures cover different timing mixes.

What happened to Jyothy Labs' margins and profit in Q2FY27?

Jyothy Labs' gross margin fell to 34.8% in Q2FY27 from 48.1% a year earlier, and operating EBITDA margin declined to 2.5% from 16.1%. The company attributed the gross-margin reduction to abnormal inflation in raw materials and packaging costs. The 13.3-percentage-point gross-margin decline was the largest movement in the company's EBITDA bridge for the quarter.

Advertising and promotion, or A&P, spending was Rs 56.5 crore, equal to 7.4% of revenue from operations, compared with Rs 61.5 crore or 8.4% a year earlier. The EBITDA bridge shows A&P provided a 0.9-percentage-point positive movement, while employee cost reduced EBITDA margin by 0.3 percentage points and other expenditure reduced it by 0.9 percentage points. Those movements did not offset the 13.3-percentage-point gross-margin impact.

Profit after tax, or PAT, was Rs 10.6 crore in Q2FY27, down from Rs 87.8 crore in the corresponding prior-year quarter. PAT margin was 1.4%, compared with 11.9% a year earlier. For H1FY27, gross margin was 36.7% versus 48.0%, operating EBITDA was Rs 83.9 crore versus Rs 242.4 crore, and PAT was Rs 58.2 crore versus Rs 184.6 crore.

Conclusion

Jyothy Labs' Q2FY27 figures show two different revenue measures: reported revenue increased 3.3% to Rs 760 crore, while value growth excluding Pril and Fa was 12.4%. Category data show Home Care down 7.1% with Pril but up 15.3% without it. At the same time, gross margin fell 13.3 percentage points and PAT declined by Rs 77.2 crore year on year.

The next disclosed matters to watch are whether raw-material and packaging-cost inflation continues to affect margins after Q2FY27 gross margin reached 34.8%, and how the comparable sales base changes after Pril and Fa sales ended on 31 May 2026. A&P spending was 7.4% of Q2FY27 revenue, below the prior year's 8.4%, providing another disclosed operating measure for future comparison.