Prominent Indian FMCG major Jyothy Labs Limited has unveiled its financial performance for the second quarter concluding on September 30, 2025. The company posted a mixed set of results, navigating a challenging market environment characterized by shifting consumer channels and regulatory changes.
Quarterly Financial Snapshot
The company witnessed a marginal 0.4% year-on-year increase in revenue, reaching ₹736 crore for the quarter. A positive highlight was the 2.8% volume growth, indicating underlying consumer demand. However, profitability faced significant pressure. Profit After Tax (PAT) saw a sharp decline of approximately 16.3%, falling from ₹104.9 crore in the same period last year to ₹87.8 crore.
This squeeze on profits was further reflected in the company's operating margin. The operating EBITDA margin contracted to 16.1%, down from 18.9% recorded in the corresponding quarter of the previous fiscal year.
Segment-Wise Performance Analysis
A deep dive into the business segments reveals a varied picture. The fabric care division emerged as a strong performer, registering a commendable 6.1% growth. The liquid detergent portfolio was a standout, with its revenues more than doubling year-on-year. The company also expanded in this segment by launching Dr. Wool, a premium product for specialized garment care.
In contrast, the dishwashing segment declined by 3.8% in value, primarily due to price reductions and promotional offers on bars. Despite this, the segment maintained a healthy 3.4% volume growth, with liquid variants continuing to outperform.
The personal care segment faced a 4.3% decline, which the company attributes to temporary disruptions related to the GST transition in September. Management expects this segment to normalize and return to growth in the latter half of the financial year.
The household insecticides segment was down by 8.9%, continuing to face broader category challenges. Jyothy Labs is focusing on new launches like Maxo Aerosols and Anti-Mosquito Racquets to improve profitability and engineer a turnaround in this division over the medium term.
Management Commentary and Future Outlook
M. R. Jyothy, the Chairperson and Managing Director of Jyothy Labs, described the quarter as a disciplined step forward during a transition period. She acknowledged that the GST rate revision led to short-term adjustments in trade channels but emphasized the resilience of the core business, evidenced by the volume growth.
She highlighted the company's strong financial discipline, noting it closed the first half with a robust cash position of ₹801 crore and zero debt. Looking ahead, she expressed optimism for the second half of FY25, anticipating a better performance supported by stable commodity costs and a gradual recovery in market demand.
