Jyothy Labs targets double-digit volume growth despite GST disruption

Jyothy Labs Limited reported Q2 FY26 revenue from operations of INR 736 crore, showing 0.4% value growth and 2.8% volume growth year-on-year. The company's gross margin was 48.1%, a 210 basis point decrease year-on-year, attributed to input cost pressures and price reductions following a GST rate revision in September 2025. This revision particularly impacted personal care products, causing temporary trade channel disruptions.

For the half-year ended September 30, 2025, revenue from operations reached over INR 1,487 crore, reflecting 1% value growth and 3.2% volume growth. Operating EBITDA margin for H1 stood at 16.3%, down from 18.4% in the previous year. Jyothy Labs expects EBITDA margin to remain between 16%-17% in H2, assuming stable commodity prices and improving demand, with a target of double-digit volume growth by the end of the year.

The company is investing in digital mediums and innovation, with new product launches in fabric care. It is also actively pursuing M&A opportunities to fast-track growth. Net working capital increased to 22 days from 19 days due to a shift towards modern trade and e-commerce, which have longer credit cycles.