Home / Business and Economy / Jyothy Labs: Q3 Revenue Rises 5%, Outlook Positive
Jyothy Labs: Q3 Revenue Rises 5%, Outlook Positive
10 Feb
Summary
- Jyothy Labs' Q3 revenue grew 5% to ₹740 crore with 7.2% volume increase.
- Gross margin declined 326 bps to 46.5% due to pricing and offers.
- Company targets double-digit growth and FY27 entry with strong momentum.
Jyothy Labs achieved a 5% revenue increase to ₹740 crore in Q3FY26, supported by a robust 7.2% volume growth. This performance was bolstered by firm rural demand and early signs of urban consumption recovery.
Segments like Fabric Care, Personal Care, and Household Insecticides demonstrated strong growth. However, the Dishwash segment experienced muted value performance due to price adjustments and promotional offers.
Despite a 326 basis points decrease in gross margin to 46.5%, attributed to price reductions and commodity inflation, the company is prioritizing volume-led expansion. Strategic goals include enhancing the product mix through premiumization and accelerating new product launches to support margins.
The management expresses cautious optimism for sustained consumption recovery and anticipates entering FY27 with strong momentum and double-digit volume growth. A Hold rating is maintained, with a revised price target of ₹270 per share.
