Jyothy Labs Ltd Management Discussions

GLOBAL ECONOMY

In CY 2025, the global economy grew by 3.4%. The global economy demonstrated steady but modest growth, supported by easing inflation, resilient labour markets, and gradual recovery in global trade. However, the pace of expansion remained uncertain amid on-going geopolitical tensions, trade policy uncertainty, and uneven regional performance.

Advanced economies posted a 1.9% increase in CY 2025 and Emerging Markets and Developing Economies (EMDEs) continue to outperform at around 4.4% in CY 2025. In contrast, the Eurozone experienced subdued economic momentum due to weak manufacturing activity and policy uncertainty. The Indian economy continued to demonstrate strong and resilient growth during the year, supported by robust domestic demand, sustained public investment, and stable macroeconomic fundamentals. The Middle East conflict has affected key shipping routes and energy infrastructure, leading to increased price volatility and tighter financial conditions, especially in parts of Asia.

	Region-Wise Output YoY(%)
Region	CY 2025 (E)	CY 2026 (P)	CY 2027 (P)
World	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
Emerging Markets and Developing Economies	4.4	3.9	4.2

E-Estimated; P-Projected

Source: World Economic Outlook, April 2026, IMF

Outlook

The geopolitical landscape continues to cast a long shadow over global stability. Rising tensions in West Asia pose mounting risks to international trade, energy supply chains, and the broader flow of goods across borders. Concerns over potential disruptions to the Strait of Hormuz - a vital chokepoint for global energy transit - pushed crude oil prices higher, tightened liquefied natural gas supplies, and fuelled volatility across financial markets. Adding to this pressure, the ongoing war between Russia and Ukraine are keeping energy markets on edge, driving up commodity prices and straining logistics networks. The combined effect is creating a persistent upward pressure on business costs and a deepening sense of uncertainty around the reliable sourcing of critical materials and services.

Advanced economies are projected to witness moderate but stable growth, with output expected to expand from 1.9% in 2025 to 1.8% in CY 2026 and 1.7% in CY 2027, reflecting a normalisation after the strong post-pandemic recovery. The US economy is forecast to grow by 2% in CY 2025 to 2.4% in CY 2026 and 2% in CY 2027, supported by strong productivity growth, particularly from technology and AI-related investment and easing inflation pressures as tariff effects fade and energy prices moderate.

However, moderating technology momentum, softer consumption, and lower immigration may limit growth. The Euro Area economy is projected to expand by 1.1% in 2026, supported primarily by consumer spending, although growth remains constrained by elevated energy costs, geopolitical uncertainty, and subdued industrial activity. The recent US tariffs and increasing geopolitical tensions pose significant challenges in the upcoming period.

Emerging Markets and Developing Economies (EMDEs), led by China and India, expected to grow by 4.4% in CY 2025 followed by 3.9% in 2026 and 4.2% in 2027, indicating continued resilience. Growth was further aided by a gradual recovery in global trade and increased public investment in infrastructure and development projects. However, the overall performance remained constrained by tight global financial conditions, elevated borrowing costs, high public debt levels, and ongoing geopolitical and trade-related uncertainties, which continued to weigh on investment and economic activity.

World Economic Outlook (IMF), WEO (IMF)-April)

INDIAN ECONOMY

India sustained its position as one of the fastest-growing major economies in FY 2025-26, demonstrating resilience amid global uncertainties. Real GDP is estimated to grow by 7.7%, up from 7.1% in FY 2024-25, supported by robust domestic demand, sustained public investment, and stable macroeconomic fundamentals. Nominal GDP grew 8.9%, while Real and Nominal GVA expanded by 7.9% and 9.1% respectively. On the expenditure side, both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) exhibited growth above 7.5%.

A favourable monsoon boosted agricultural output and rural demand, while manufacturing and construction continued gaining traction. The Primary sector grew 3.2%, driven mainly by agriculture and fishery, while the Secondary and Tertiary sectors grew 8.8% and 9.3% respectively at constant prices. Manufacturing, trade/ hotels/transport/communication, and financial/real estate/professional services sectors all achieved double-digit growth at both constant and current prices. Growth was broad-based: trade, hotels, transport, and communication led at 11%, followed by financial, real estate, and professional services at 10.4%. Manufacturing grew 10.7% and construction 7.4%, reflecting improving industrial momentum, while agriculture registered moderate growth of 3%.

The Union Budget 2026-27 is anchored around the Viksit Bharat vision, prioritising youth empowerment, structural reforms, and fiscal discipline. Growth is further supported by improved credit flow, higher capacity utilisation, a good monsoon, and reforms such as GST 2.0. The budgets investment strategy targets strategic sectors - semiconductors, electronics, biopharma, and rare earths - to reduce import dependence and strengthen domestic capability. Infrastructure remains a central theme, with high capital expenditure directed towards freight corridors, waterways, and high-speed rail. MSMEs and the services sector receive focussed support through funding access, IT reforms, skill development, and initiatives including medical tourism. Agriculture and energy security are addressed through productivity improvements, AI integration, and clean energy investments, all within a framework of fiscal prudence.

The RBI has held the repo rate steady at 5.25%, reflecting a balanced stance that supports economic momentum without compromising financial stability. This signals resilient domestic demand, supportive financial conditions, and a stable external sector - pointing to a cautiously optimistic outlook for the Indian economy in the year ahead.

Source: https://www.pib.gov.in/PressReleasePage. aspx?PRID=2269286r=48&lang=2

https://www.pib.gov.in/PressReleasepageaspx?PRID=2233518r=3&lang=2

Rising Rural Focus

Comprising nearly 6.96 lakh villages and supported by around 2.55 lakh Gram Panchayats and 2.63 lakh rural local bodies, rural India represents a fundamental pillar of the nations governance and development architecture. Under Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), 3 crore houses have been completed since the launch of the scheme in CY 2016.

As of March 2026, 7,94,215 km of road length was completed under Pradhan Mantri Gram Sadak Yojana (PMGSY).

The National Rural Health Mission, which focusses on strengthening public health systems to deliver accessible, affordable, and high-quality healthcare services to rural communities, is showing strong progress and positive momentum. Under the Jal Jeevan Mission, a total of 12.6 crore households have been provided with tap water connections.

Nearly 12.11 crore toilets and 2.73 lakh community sanitary complexes were constructed under the Swachh Bharat Mission (Gramin).

The Union Budget 2026-27 outlines a comprehensive strategy for strengthening rural India through enhanced agricultural productivity, rural entrepreneurship, infrastructure expansion, and inclusive development. It highlights fiscal prudence, monetary stability, and public investment. The government has prioritised increasing farmers incomes by promoting high- value agriculture such as horticulture, coconut, cashew, cocoa, fisheries, and animal husbandry, alongside integrated development of 500 reservoirs and Amrit Sarovars to strengthen irrigation and water security. Initiatives like Bharat-VISTAAR aim to integrate AgriStack portals with Al-based agricultural practices, improving efficiency and market access. Over 350 reforms have been rolled out, including GST simplification, notification of Labour Codes, and rationalisation of mandatory Quality Control Orders.

Rural employment and entrepreneurship are being supported through MSME growth funds, TReDS (Trade Receivables Discounting System) liquidity mechanisms, and SHE (Self-Help Entrepreneur) Marts, along with capital subsidies for allied infrastructure. Infrastructure investments and government funding for healthcare, skills, and social welfare are further strengthening rural connectivity, job creation, and inclusive development in line with the vision of Viksit Bharat. The Budget adopts a three-pronged approach to grow MSMEs through a Rs. 10,000 crore SME Growth Fund and a Rs. 2,000 crore top-up to the Self-Reliant India Fund for equity support.

Union Budget 2026-27 emphasises holistic rural development through agricultural modernisation and income enhancement. It promotes high-value crops, fisheries, and animal husbandry while strengthening irrigation infrastructure. Rural entrepreneurship is encouraged through MSME funding and improved credit access mechanisms. Large-scale infrastructure investments aim to boost connectivity and market integration. Combined with state grants, healthcare, and skill development programmes, the approach supports inclusive and sustainable rural growth.

STEPS TAKEN BY THE GOVERNMENT TO SUPPORT ECONOMIC GROWTH

Structural Reforms & Manufacturing Push:	MSME Development:
Implementation of over 350 reforms, promotion of domestic manufacturing through Production Linked Incentive (PLI) Schemes, Biopharma SHAKTI, electronics manufacturing schemes, revival of 200 industrial clusters, and targeted tax incentives.	Rs. 10,000 Crore SME Growth Fund, CGTMSE- backed credit guarantees, mandatory TReDS for CPSE procurement, GeM-TReDS integration, and compliance support via Corporate Mitras.
Infrastructure Expansion:	Agriculture & Rural Growth:
Significant rise in public capital expenditure, development of freight corridors, 20 national waterways, industrial corridors, high-speed rail connectors, and urban economic regions.	Integrated development of 500 reservoirs and Amrit Sarovars, fisheries and horticulture promotion, animal husbandry support, and AI-enabled AgriStack integration under Bharat-VISTAAR.
Services & Digital Economy Boost:	Energy Security & Sustainability:
Establishment of medical value tourism hubs, AVGC labs, caregiver training programs, IT sector safe harbour reforms, and long-term tax incentives for data centres.	Rs. 20,000 Crore CCUS scheme, incentives for lithium-ion battery and critical mineral processing, nuclear power expansion, and biogas duty exemptions.
Financial Sector & Fiscal Stability:	Strengthening Global Trade:
Municipal bond incentives, restructuring of PFC and REC, corporate bond market reforms, improved ease of doing business measures, and a fiscal consolidation roadmap targeting a 501% debt-to-GDP ratio by 2030.	Free Trade Agreements (FTAs) have helped mitigate external risks by diversifying trade partnerships, expanding market access, and enhancing export opportunities for Indian businesses.

Outlook

Indias macroeconomic outlook remains resilient despite external headwinds and global uncertainty. Underpinned by strong manufacturing, services, and investment activity Indias economy reflects continued domestic momentum even as global demand softens.

The International Monetary Fund (IMF) projects robust growth for the country, with real GDP expected to expand by around 7.3% in FY 2025-26 then slightly downward at 6.4% in CY2026 and CY2027. Growth is supported by firm domestic demand and well-contained inflation. Macroeconomic stability is reinforced by disciplined fiscal management, manageable current account deficits, and resilient foreign exchange reserves, enhancing the economys capacity to absorb shocks.

Indias consumer inflation has risen to 3.21% in February 2026 as oil risk looms over it. Retail inflation has moderated and broadly remained within the RBIs tolerance band of 2-6%, which has allowed accommodative monetary conditions to support growth. RBI has maintained a neutral policy stance with repo rates reflecting this balance between inflation control and growth support. Overall, India continues to rank among the fastest-growing major economies globally, navigating global trade challenges, on-going geopolitical tensions and leveraging strong internal demand to sustain a growth trajectory.

Challenges Ahead

The FMCG sector navigates demand volatility driven by fluctuating rural incomes, inflationary pressures, and rising input costs that compress margins. Price-sensitive consumers continue shifting to smaller pack sizes during high-inflation periods. US tariff measures, a stronger dollar, and geopolitical uncertainties add to the complexity. Despite persistent inflationary pressures, signs of rural recovery and targeted price-pack innovations are expected to cushion the impact, supporting a gradual improvement in volumes and margins.

Urban volume growth edged up to 4.6% in 2025, outpacing rural growth which moderated to 3.6%. Competitive intensity has risen sharply with the expansion of regional brands, D2C players, private labels, and quick commerce platforms, disrupting traditional distribution models and demanding greater investment in digital and omni-channel capabilities. Source: https://economictimes.indiatimes.com/ industry/cons-products/fmcg/fmcg-urban-sales-growth-outpaces-rural-in-2025-overall-expansion-slows-to-4-1/articleshow/128523366.cms?utm_ source=chatgpt.com&from=mdr

Regulatory changes, sustainability mandates, and supply chain disruptions add operational complexity. Nonetheless, strong brand equity, supply chain diversification, and health-focussed product innovation provide a solid foundation for long-term growth.

INDUSTRY OVERVIEW

The global FMCG market is projected to witness steady expansion, with its size expected to increase by approximately USD 480.6 billion between 2025 and 2030, growing at a CAGR of 3.2%. The growth is being supported by accelerated digital transformation, AI integration, and evolving consumer preferences, which are reshaping supply chains, distribution models, and product innovation across markets.

In FY 2025-26, the Indian FMCG sector has begun to show early signs of revival, supported by easing inflation, improving consumption trends, and a favourable policy environment. Consumer confidence strengthened progressively during the year and is expected to improve further in the coming quarters. Policy measures such as GST rate rationalisation, repo rate reductions by the Reserve Bank of India, and moderating inflation have collectively enhanced affordability. These benefits started becoming visible in Q3 FY26, with a broader recovery expected to unfold over the near term. Demand for daily essentials and home care products has shown visible improvement, indicating a gradual normalisation of consumption patterns.

The FMCG sector continues to be the fourth-largest sector in India, contributing approximately 3% to GDP and generating employment for nearly 3 million people, accounting for around 5% of total factory employment. The Indian FMCG market was valued at USD 287.91 billion in 2025 and is projected to reach USD 1,150.21 billion by 2034, expanding at a CAGR of 16.64%. This strong growth trajectory is driven by rising disposable incomes, rapid urbanisation, and evolving consumer lifestyles, with increasing preference for convenience-oriented and premium products.

Despite global economic uncertainties, the sector has demonstrated notable resilience, supported primarily by robust domestic consumption. Growth momentum is being sustained through expanding retail infrastructure, digital transformation, increasing brand consciousness, and continued government support. The Union Budget 2025-26 has provided a significant impetus to consumption, particularly benefiting the FMCG sector. Key initiatives such as rural electrification, Production Linked Incentive (PLI) schemes, and expanding e-commerce penetration are enhancing market accessibility across both urban and rural regions. Additionally, favourable demographics continue to drive demand for packaged foods, personal care, and convenience products.

Within the Indian FMCG market, urban demand has shown relative strength, with volume growth increasing to 4.6% in 2025, surpassing rural growth, which moderated to 3.6%. This marks a shift where urban markets have outpaced rural regions in sales growth for daily essentials. Overall FMCG volume growth in India slowed to 4.1% in 2025, compared to 4.7% in 2024, reflecting near-term demand moderation. However, rising rural consumption continues to present opportunities for distribution expansion in tier-2 and tier-3 markets. Furthermore, the quick commerce segment is expected to grow significantly, with the market projected to reach USD 25-55 billion by 2030, driven by increasing adoption among high-frequency users.

During the year, nearly 60% of the FMCG portfolio underwent GST rate revisions, necessitating coordinated pricing adjustments across the value chain, including manufacturers, distributors, and retailers. In the retail segment, Modern Trade (MT) demonstrated strong momentum, recording a sharp acceleration in Q3 FY26, supported by efficient pricing execution and stronger operational capabilities. In contrast, Traditional Trade (TT) experienced short-term disruptions due to pricing and supply recalibrations during the GST transition phase, which temporarily impacted performance. Nevertheless, the continued expansion of Modern Trade and improving consumption trends provide a positive outlook for the sector going forward. Personal care and cosmetics dominate the market with a share of 48% in 2025. General trade (GT) also recovered after weak quarters.

Premiumisation and Aspiration-Driven Consumption in India

Premiumisation in India reflects a change in consumer preferences, with more people opting for products that offer better quality, performance, and enhanced experiences instead of only choosing low-cost options. India is undergoing a massive urban shift, with 93% of consumer growth decentralising. By 2035, India will have 499 consumer cities, defined as cities in which 75% of the population is in the consumer class (spending USD 13 or more per day), more than twice the number of such cities today. By 2040, there will be 149 cities in India with half a million consumers, compared to just 53 in the US and 112 in Europe. Only China will surpass India with 190 such cities. The trend is being driven by rising incomes and the growth of the middle class across both urban and smaller cities. Consumers are increasingly willing to spend more if they see clear value in terms of quality, convenience, and effectiveness. This shift is visible in the move from basic products such as detergent powders to premium liquid detergents and body washes. Growing prosperity, especially in urban regions, is also increasing spending on premium skincare, wellness products, and lifestyle experiences like travel, dining, and entertainment. Overall, premiumisation in India is being influenced by aspiration-led consumption, value-conscious purchasing, and higher disposable incomes.

The Convenience Revolution: Redefining

FMCG in a Digital-First India

Consumers are increasingly gravitating toward convenience in both their product choices and shopping habits. It is estimated that 40% of all FMCG consumption in India will be made online by 2030. The growing prevalence of nuclear families and fast-paced urban lifestyles has accelerated demand for ready-to-use products such as liquid detergents and packaged mini-meals, reflecting a broader move away from time-intensive traditional practices. FMCG companies are responding by expanding their portfolios to include more convenience-focussed formats tailored to the needs of modern households.

Growth of E-Commerce

In a dramatic shift set to redefine Indias FMCG landscape, industry experts estimate that e-commerce could command as much as 40% of the nations FMCG sales by the end of this decade. The online grocery boom is being fuelled by robust investments in logistics, relentless smartphone adoption (with over 1 billion devices expected by 2030). Quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart have fundamentally changed urban shopping behaviour, driving more frequent and impulsive buying. Beyond just delivery speed, these platforms have evolved into strategic brand-building tools - helping companies gain visibility, experiment with packaging, and reach new consumers. Rapid Q-commerce growth has created tension with traditional retailers who cite concerns over pricing fairness, making channel management an important challenge for the sector. Data analytics is now central to understanding buying behaviour and guiding product innovation. Quick commerce, where delivery happens within 15-60 minutes, is evolving from an urban experiment to a core fulfilment model. Industry estimates suggest, India is likely to see its quick commerce (QC) total addressable market (TAM) reach USD 57 billion by 2030. E-commerce share of total FMCG sales is expected to increase by 11% by 2030. Looking beyond metros, smaller cities and towns are now emerging as the next significant growth opportunity for FMCG, backed by infrastructure development, greater internet access, and an increasingly aspirational consumer base.

Artificial Intelligence

Integration

Artificial intelligence adoption is accelerating across FMCG operations, influencing product development, pricing strategies, and consumer engagement. Industry reports indicate AI technologies powered approximately half of new FMCG product launches in recent periods while influencing pricing decisions across majority of market segments. Leading manufacturers are deploying AI-powered analytics platforms for demand forecasting, personalised marketing, and supply chain optimisation, enhancing operational efficiency and consumer responsiveness.

Rising Middle-Class Consumer

The expanding middle class is increasing demand across essential categories, such as soaps, detergents, toothpaste, and dishwash products, for everyday consumer goods. Rising disposable incomes are enabling higher spending on branded and quality products. This segment is becoming a key growth driver for the FMCG sector. Despite high inflation in daily expenses, demand seems to be increasing.

Sustainability and Eco-Friendly Products

Consumers are showing increasing preference for Bio-degradable and environmentally safe products. Brands are adopting sustainable sourcing and green manufacturing practices. Eco-friendly packaging is becoming an important buying factor.

Innovative Packaging

Packaging innovations are improving product convenience and shelf life. Sustainable and lightweight packaging is gaining importance. Brands are using packaging design to enhance product differentiation.

Outlook

Indias FMCG market is projected to reach USD 1,150.21 billion by 2034, growing at a CAGR of 16.64% and the foundations supporting that trajectory are increasingly structural rather than cyclical.

The sector is experiencing a deliberate shift from price-driven expansion to volume-led growth. As food inflation moderated, urban markets led the initial recovery, with premium personal care and packaged foods regaining momentum across Tier-1 and emerging Tier-2 cities. Rural demand has since accelerated, driven by government transfer programmes that have materially strengthened household purchasing power and pushed rural growth ahead of urban markets. Balancing urban premiumisation with disciplined rural penetration ensuring distribution investments and marketing outlays deliver measurable returns defines the strategic agenda for 2026.

Health and Wellness Focus

Consumers are shifting toward healthier food options, organic ingredients, and nutritionally enriched products. Personal care products with natural and safe formulations are gaining popularity. Health awareness, especially after the pandemic, is shaping purchasing decisions.

Value for Money

Price-sensitive consumers still dominate many FMCG categories. Brands are offering discounts, combo packs, and affordable variants. Value-based pricing strategies help maintain market competitiveness.

Policy tailwinds are reinforcing this momentum. GST rationalisation and tax reforms continue expanding access to essential products in price-sensitive segments. Margin recovery has been supported by softer edible oil, packaging, and commodity costs, though supply chain disruptions and climate variability keep raw material planning uncertain. Companies have responded through overhead controls, portfolio optimisation, and grammage-led price corrections preserving margins without compromising brand equity.

The competitive landscape is also shifting. Founder-led, digital-first brands have raised innovation benchmarks across personal care, nutrition, hygiene, and functional foods. Established players are responding through collaboration strategic alliances, minority investments, and acquisitions that expand capability while maintaining governance discipline. The result is a complementary model where entrepreneurial agility meets institutional scale. Collectively, these dynamics position the sector for sustained, structurally grounded growth.

COMPANY OVERVIEW

Founded in 1983, Jyothy Labs Limited was established by M. P. Ramachandran as a single-product venture based in Thrissur, Kerala. Over the years, your Company evolved significantly, and by 1992, it had transformed into a professionally managed, multi-product, multi-brand organisation with operations spanning across India. Today, your Company holds a strong position in the FMCG sector, particularly within the Home Care and Personal Care segments. With 23 state-of-the-art manufacturing facilities across the country, your Company has built a robust operational footprint.

Catering to consumers seeking effective cleaning and hygiene solutions, your Company has established strong brand equity across key categories, including fabric care, household insecticides, personal care, and dishwashing products. Its portfolio of power brands -Ujala, Maxo, Exo, Henko, and Margo - maintains leading positions in their respective categories. Ujala Supreme has remained the market leader in the fabric whitener segment for over four decades. Exo ranks as strong number two brand in dishwashing bar category, while Maxo mosquito repellent coils hold the second position by volume in the mosquito repellent category. Driven by a strong commitment to consumer satisfaction, your Company consistently introduces innovative products featuring unique ingredients and differentiated benefits, supported by a focussed investment in research and development.

Your Company also benefits from an extensive distribution network, ensuring a widespread presence across traditional retail outlets, supermarkets, canteen stores, department stores, modern trade channels, and e-commerce platforms throughout India. Brand equity is further strengthened through carefully planned celebrity endorsements, enabling faster consumer recall and enhanced brand visibility across markets. Your Company aspires to be recognised as a trusted, accessible, and affordable provider of superior-quality products. It also focusses on adapting to evolving channel dynamics, leveraging emerging opportunities through innovation, maintaining an optimal balance between competitive pricing and profitability, and reinforcing its brand portfolio alongside an expansive distribution network.

KEY STRENGTHS & STRATEGIES

Enhanced Market Leadership

Despite holding a strong and dominant market position, Jyothy Labs remains steadfast in its commitment to further strengthening brand equity within the fabric care segment, particularly in the main wash category, while simultaneously expanding the geographical reach of its post-wash portfolio. Across other business segments, your Company continues to target robust growth through diversification across product categories, deeper market penetration, and enhanced consumer engagement. With the objective of remaining the preferred choice among consumers and increasing market share, your Company is focussed on fostering customer loyalty and reinforcing brand equity.

Your Company continues to expand its presence across multiple marketing channels, supported by strategic celebrity endorsements and dynamic advertising and promotional initiatives aligned with evolving consumer trends. Its brands maintain strong visibility across television, over-the-top (OTT) platforms, digital campaigns, out-of-home (OOH) media, and in-store activations. Your company continued its long standing association with leading celebrities during FY26 , further strengthening brand recognition & consumer connect.

Your Company also has a strong presence across social media platforms with diverse engagements and promotional activities. Various activities aimed at building and promoting its brands during FY26 include:

Ujala Supreme

The Ujala franchise sustained strong growth through a mix of television, digital, and cinema campaigns, boosting visibility and brand recall in key markets. Ongoing digital promotions featuring Vidya Balan, along with festive-themed reels, further strengthened emotional connect and recall.

Ujala Crisp & Shine Intense

The introduction of Ujala Crisp & Shine Intense strengthened the premiumisation push, backed by ATL campaigns and strong in-store visibility. Continued ATL promotions featuring Nayanthara, along with ongoing sampling, helped drive category adoption across key markets.

Ujala Young & Fresh

Ujala Young & Fresh was launched through a focussed multimedia rollout across key markets, with strong presence across TV, digital, and OOH (out-of-home) channels. The brand expanded its reach through high-impact entertainment integrations and multiplex advertising, driving incremental visibility and audience engagement.

Ujala Detergent Powder & Dr. Wool

Ujala Detergent continued its ATL campaigns featuring Manju Warrier across both powder and liquid formats, with a sharper focus on increasing adoption of Ujala Liquid. Strong ATL support in key markets helped drive market share gains, further backed by refreshed SKUs and expanded distribution.

Launched in Q2 FY26, Dr. Wool is an expert liquid detergent designed for woollens and delicate fabrics, marking Jyothy Labs entry into a premium niche within fabric care. The product enhances the portfolio by strengthening its presence in specialised garment care, particularly across North and East markets.

Henko Matic Liquid Detergent

Henko Matic Liquid Detergent reinforced its superior value proposition through multi-channel communication, supported by continued sampling with a strong focus on e-commerce platforms

Morelight and Mr. White Liquid Detergent

Morelight and Mr. White liquids continued to build scale on value-led propositions, backed by stronger promotions and on-ground activations tapping into rising liquid detergent adoption.

Exo Dishwash Bar

The brand sharpened its focus on driving market share across geographies through the expansion of low unit packs (LUPs) and deeper retail penetration, particularly in Tier 2 and rural markets. Its anti-bacterial positioning was reinforced through strong ATL and digital campaigns featuring Shilpa Shetty, supported by targeted media investments in key regions. High-impact on-ground activations and social media promotions, including Exo campaigns, helped boost engagement and conversion. Additional brand-building efforts, such as Healthy Recipe print integrations, further strengthened visibility in core markets. Despite increased competitive intensity, the brand-maintained marketplace competitiveness through calibrated MRP adjustments to ensure price parity across key packs.

Pril Dishwash Liquid

Pril Tamarind Shine Specialist with Insta Clean is a breakthrough Innovation in the category. Maintained strong competitiveness on large refill packs through value offers, while sampling and trial-driving initiatives supported growth across channels. In Modern Trade and e-commerce, the 750ml pack and larger refill pouches (1.5L+) led growth, with sustained visibility reinforced through focus on key packs. GT expansion continued via trial pouch packs to deepen retail penetration.

Maxo Mosquito Repellent

The brand sustained a multimedia campaign featuring Kareena Kapoor across key markets, highlighting Maxos automatic dispensing feature and universal machine compatibility. This was complemented by targeted digital campaigns to enhance awareness and brand recall. To celebrate 25 years of Maxo, high-impact influencer and on-ground initiatives such as the Ghar ka Asli Genius Kaun campaign and the Maxo Chess Genius activation were executed, reinforcing its legacy of smart protection. Strengthened Maxo Aerosols and Anti-Mosquito Racquet launch through focussed distribution expansion, building on Maxos strong brand trust in new formats.

Margo Soap

Margo has over a century of neem heritage to draw from, and the brand is using it. The last few quarters saw a sustained national multimedia campaign featuring Raashii Khanna built around a single, clear message - Ek Achhi Aadat - the idea that picking up one good habit, using Margo with the goodness of 1000 neem leaves, gives you naturally healthy skin. Your Company launched a modernised pack design with a refreshed visual identity during the year. The campaign ran across TV, digital, and on-ground activations, with promotional packs to push trials. On the new product side, Margo Neem Naturals got its own push - a MOJ collaboration that reached over 8.4 million consumers, backed by in-store activations and a growing e-commerce presence through channel-exclusive packs. MRP revisions were implemented across SKUs following the new GST rates. The focus is split between holding the line on Margo Original Neem and building the Neem Naturals franchise - widening the range without losing what the brand stands for.

Jovia

Jovia is enriched with natural ingredients such as Lemon, Aloe Vera, Sandal & Turmeric for soft and beautiful skin. Built awareness and trials for the newly launched Jovia soap through consumer activations and outdoor visibility.

Expanded Distribution Network

During the year, Jyothy Labs further strengthened its direct distribution footprint, expanding from approximately 13 lakh retail outlets in FY 2024-25 to nearly 14 lakh outlets in FY 2025-26 with a strong network of over 10,000 + channel partners. This addition of close to 1 lakh outlets represents a broad-based, pan-India expansion rather than a region-specific push.

The growth in direct reach has been balanced across urban and rural markets, reflecting your Companys strategy of driving uniform distribution expansion across geographies. By deepening its presence across regions and channels, your Company continues to enhance market access, improve product availability, and strengthen its engagement with retailers nationwide.

The revised GST structure covered several daily essential categories, including key products within your Companys personal care portfolio such as toilet soaps and toothpaste, which together account for approximately 11% of the business. The benefit of the lower GST rates was fully passed on to consumers through revised pricing, making the change cost-neutral for your Company.

The transition to the new rate structure resulted in short-term adjustments across trade channels, as distributors and retailers recalibrated inventory and pricing to align with the revised GST framework.

Extensive In-House R&D facilities

Jyothy Labs is supported by three advanced, state-of-the-art R&D centres, staffed by a team of experienced professionals dedicated to driving innovation and operational excellence. The R&D function plays a critical role in developing new products aligned with evolving consumer trends, enhancing manufacturing efficiencies, and continuously improving existing product formulations.

Your Companys strong research-driven foundation provides a distinct competitive edge within the industry. In recent years, the R&D focus has increasingly shifted towards the development of sustainable and environmentally responsible solutions, reinforcing your Companys commitment to long-term, responsible growth.

Introduced New Products & Variants

Jyothy Labs adopts a deeply consumer-focussed philosophy in its product development process, ensuring that innovations are driven by changing consumer preferences and usage trends. This approach has enabled your Company to achieve strong acceptance of its new launches and variants, strengthening both consumer satisfaction and competitive positioning. The sustained growth of liquid detergents under the Henko, Ujala, Mr. White and Morelight brands, along with the expansion of the Margo portfolio through new variants and the launch of Jovia soap reflects the effectiveness of this strategy. These launches underscore your Companys continued focus on innovation, portfolio diversification, and participation in high-potential segments.

Adapted Sustainable Solutions

Sustainability remains a core strategic priority for Jyothy Labs, with a strong commitment towards achieving net-zero emissions over the long term. Your Company continues to explore and invest in relevant opportunities that support this objective, while actively transitioning towards a circular economy model. A key focus area in this journey is sustainable packaging, aimed at reducing environmental impact and improving resource efficiency across the value chain. To minimise its carbon footprint, the Company maintains a 47+ acre green belt and has made consistent investments in energy-efficient technologies, including renewable energy projects. Recognising the growing global importance of environmental stewardship, Jyothy Labs has proactively embedded sustainability into its operations by adopting environmentally friendly alternatives wherever feasible. Your Company also promotes the use of sustainable raw materials and strengthens its R&D efforts to develop organic and natural product formulations. These initiatives reinforce its commitment to responsible innovation and long-term environmental sustainability. Alongside its sustainability agenda, Jyothy Labs continues to prioritise volume-led growth and economies of scale, with a renewed emphasis on rural-driven expansion across categories. Strategic investments remain focussed on strengthening brand equity, expanding direct distribution reach, and enhancing manufacturing capabilities to support sustainable and scalable growth.

FINANCIAL PERFORMANCE

Accounting Policy

Your Companys financial statements are in compliance with the Indian Accounting Standards (Ind AS) as notified under the Companies (Indian Accounting Standards) Rules, 2015, with subsequent amendments. These statements adhere to a historical cost basis, except for specific financial assets, which have been assessed at fair value. The Management Discussion and Analysis predominantly focus on the consolidated accounts of your Company when delving into the discussion of financial performance.

Review of FY 2025-26

FY26 profitability reflected sector wide raw material inflation that could not be passed through. We chose to absorb part of this pressure rather than weaken brand support- a trade off to protect long term value.

( Rs. in Crore)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	2,944	2,844
Cost of Goods Sold	1,562	1,418
Employee Cost	341	325
Advertisement and Sales Promotions	227	240
Other Expenditure	364	361
Operating EBITDA	450	500
Depreciation and Amortisation	61	56
Finance Cost	5	6
Profit before Tax (before exceptional items)	451	493
Profit after Tax	333	371
Share Capital	37	37
Cash and Bank Balance including Investments	997	757

Details of Key Financial Ratio FY 2025-26

Ratios	FY 2025-26	FY 2024-25	Change (%)
Current ratio	2.68	2.76	-2.9%
Net profit ratio (%)	11.32	13.05	-13.29%
Return on Equity (%)	22.43	29.41	-23.7%
Trade receivable turnover ratio	11.09	12.10	-8.33%
Trade payables turnover ratio	7.15	7.29	-1.94%
Inventory turnover ratio	4.65	4.65	-0.03%
Return on Capital employed (%)	31.93	42.24	-24.39%

FINANCIALS

Revenue from Operations

Net Revenue from operations grew by 3.5% to Rs. 2,944 Crore in FY 2025-26 as against Rs. 2,844 Crore in FY 2024-25

Cost of Goods Sold (COGS)

The Cost of Goods Sold increased by 10.2% to Rs. 1,562 Crore in FY 2025-26 as against Rs. 1,418 Crore in FY 2024-25

Employee Cost

Employee costs grew by 4.9% to Rs. 341 Crore in FY 2025-26 as against Rs. 325 Crore in FY 2024-25

Advertisement and Promotion Cost

Advertisement and promotion costs decreased by 5.1% to Rs. 227 Crore in FY 2025-26 as against Rs. 240 Crore in FY 2024-25. Advertisement and promotion stood at 7.7% of Revenue from operations during the year 2025-26.

Other Expenses

Other expense increased by 0.7% to Rs. 364 Crore in FY 2025-26 as against Rs. 361 Crore in FY 2024-25.

Depreciation

Depreciation increased by 9.1% to Rs. 61 Crore in FY 2025-26 as against Rs. 56 Crore in FY 2024-25.

Finance Cost

Finance cost declined by 15.9% to Rs. 5 Crore in FY 2025-26 as against Rs. 6 Crore in FY 2024-25.

Profitability & Margin

Operating EBITDA stood at 15.3% ( Rs. 450 Crore) in FY 2025-26 as against 17.6% ( Rs. 500 Crore) of Revenue in FY 2024-25. Profit before Tax (before exceptional items) decreased to Rs. 451 Crore in FY 2025-26 as against Rs. 493 Crore in FY 2024-25. PAT decreased to Rs. 333 Crore in FY 2025-26 as against Rs. 371 Crore in FY 2024-25.

Share Capital

The paid-up share capital stood at Rs. 37 Crore as on March 31, 2026.

Net Worth

The net worth of the Company stood at Rs. 1,589 Crore as on March 31, 2026, from Rs. 1,383 Crore as on March 31, 2025. Return on Equity is 22.4% in FY 2025-26.

Net Block

Net Block for the Company stood at Rs. 504 Crore as on March 31, 2026 as against Rs. 460 Crore as on March 31, 2025.

Net Operating Working Capital

Net Operating Working Capital for the Company stood at Rs. 119 Crore as on March 31, 2026, as against Rs. 144 Crore as on March 31, 2025. This translates to 15 days of working capital in FY 2025-26 as against 19 days in FY 2024-25.

The Current Ratio stood at 2.68 on March 31, 2026, as against 2.76 on March 31, 2025.

Inventory

Inventory of the Company stood at Rs. 344 Crore as on March 31, 2026, compared to Rs. 328 Crore as on March 31, 2025. Inventory Turnover Ratio for the Company stood at 4.65 as of March 31, 2026.

Trade Receivables

Trade Receivables for the Company stood at Rs. 257 Crore as on March 31, 2026, compared to Rs. 274 Crore as on March 31, 2025. Trade receivable turnover ratio stood at 11.09 as of March 31, 2026, as against 12.10 as of March 31, 2025.

Cash and Bank Balances, including investments

Cash and bank balances for the Company stood at

Rs. 997 Crore as on March 31, 2026, compared to Rs. 757 Crore as on March 31, 2025.

Provisions

Provisions for the Company stood at Rs. 129 Crore as on March 31, 2026, against Rs. 122 Crore as on March 31, 2025.

Other Liabilities

Other Liabilities for the Company stood at Rs. 126 Crore as on March 31, 2026.

Shareholder Value: Dividend

With a view to maximise shareholders returns, the Board of Directors has recommended a dividend of Rs. 3.5 per equity share (350% dividend ratio) FY 2025-26.

SEGMENT-WISE PERFORMANCE

Fabric Care

The Fabric Care segment grew 8.1% in FY 2025-26, dominating the total revenue share at 45.7%. The growth was mainly volume-driven. The entire liquid detergents portfolio performed strongly with significant contributions from detergent powders and detergent bars.

Dishwashing

The Dishwashing segment declined by 1.3% in FY 2025-26, contributing 32.5% to the total revenue. Segment witnessed an overall volume growth as an outcome of price reductions, grammage increases and promotional offers.

Household Insecticides

The Household Insecticide segment declined by 1.3% in FY 2025-26 due to a decline in the coil category. Segment contributed 6.7% to the total revenue in FY 2025-26.

Personal Care

The Personal Care segment grew 5.2% in FY 2025-26, contributing 10.9% to the total revenue.

Others

The Other Products segment declined by 1% in FY 2025-26, contributing 4.2% to the total revenue.

Segment-Wise Revenue Growth

Segment	FY 2025-26	FY 2024-25
Fabric Care	8.1%	5.0%
Dishwashing	-1.3%	3.7%
Personal Care	5.2%	-0.9%
Household Insecticide	-1.3%	-6.5%
Other Products	-1.0%	10.8%

HUMAN RESOURCES

Shaping Capability, Culture and Confidence

People remain the most enduring competitive advantage at Jyothy Labs. This year, the HR function stayed firmly committed to nurturing talent, deepening capabilities, and building a workplace where individuals grow, contribute, and thrive. Initiatives spanned structured talent development, thoughtful onboarding, employee wellbeing, and a culture of active engagement.

Keeping employees connected, heard, and valued remained a strategic priority. Initiatives across the year encouraged active participation, strengthened cross-functional connections, and ensured recognition stayed a consistent and visible part of organisational life.

Unnati continued as the flagship competency-based training programme, delivering targeted interventions across Sales, Manufacturing, Corporate, and R&D functions covering customer engagement, Lean Operations, problem-solving, packaging testing, and communication. Wellness sessions, including dedicated programmes for women employees, were also conducted. Over 1,43,157 training man hours were invested across functions in FY26.

JEmbark , the campus recruitment programme, onboarded young professionals from Indias leading management institutions across functions, bringing fresh perspectives and energy aligned with the organisations long-term growth ambitions. 21 management trainees were hired from business schools in FY26.

Jyothy Labs follows a robust and forward-looking risk management framework that is closely aligned with its core values and long-term business objectives. Risk oversight is embedded within the Companys governance structure, enabling timely identification, assessment, and mitigation of potential business risks. This proactive and structured approach strengthens resilience, safeguards stakeholder interests, and supports sustainable growth.

Saksham enabled Sales TMIA employees to pursue graduate degrees alongside their roles, steadily building a more qualified and future-ready frontline workforce.

Samwad strengthened the HR and Sales connect through structured monthly sessions, creating a trusted space for candid dialogue, issue resolution, and cross-functional alignment.

The Genesis Animated Induction Module , launched in multiple languages for GT Sales new joiners, provided an interactive introduction to the organisation, product portfolio, and sales processes. Key Staff Introduction Sessions helped new employees build early stakeholder relationships, while the Anubhav Survey captured joiner feedback to continuously improve the onboarding experience.

The Mediclaim Flex Plan was introduced, offering flexible coverage spanning Group Medical Cover and parental mediclaim policies. Annual Health Check-ups were organised across locations, reinforcing a culture of preventive care and early intervention.

A rich calendar of employee engagement activities was conducted through the year, including festival celebrations, team events, PlaySport , an annual corporate sports event. The Ujala House Homecoming brought the entire corporate community together to celebrate the organisations move into its newly renovated Mumbai headquarters.

The Academic Excellence Recognition initiative celebrated employees children securing 90% and above in Class 10 and Class 12 board examinations, reflecting Jyothy Labs commitment to its people beyond the boundaries of the workplace.

A company-wide training programme under Business Responsibility and Sustainability Reporting (BRSR) was conducted in FY26, embedding a culture of ethical, transparent, and sustainability-conscious practices across the enterprise.

Jyothy Labs was recognised among Indias Top 50 Best Workplaces in Manufacturing 2026 and certified as one of Indias Best Workplaces in FMCG 2025 by Great Place to Work, validating the trust, inclusivity, and collaborative culture built through collective effort and shared values. At Jyothy Labs, people are not just a function of strategy, they are the foundation of it. As the business scales and the consumer landscape evolves, the HR function remains committed to attracting the right talent, developing it with intent, and retaining it through a workplace that people are genuinely proud to be part of.

During the year, the Company reviewed the implications of the new labour law framework introduced by the Government of India and assessed its impact on employee-related obligations, compensation structures, social security benefits, and compliance processes. Based on the evaluation carried out using the information and regulatory guidance available as of the reporting date, the Company does not expect any material impact on its financial position, results of operations, or cash flows. The Company remains committed to ensuring full compliance with the evolving regulatory requirements and continues to monitor the issuance of additional rules, notifications, and clarifications by the relevant authorities.

INFORMATION TECHNOLOGY (IT)

Powering Smarter Operations Through Digital Excellence

Information Technology remains a cornerstone of growth at Jyothy Labs, driving business agility, operational efficiency, and data-informed decision-making. This year, the focus was on scaling digital infrastructure, deepening automation, and deploying employee-centric platforms that enable seamless collaboration across the enterprise.

Corporate Office Modernisation

The Ujala House workplace underwent a comprehensive digital and physical modernisation, creating a tech-enabled, future-ready environment designed to support evolving work models and cross-functional collaboration at scale.

Outlet Pulse

Outlet Pulse is an AI-powered analytics platform that delivers real-time visibility into outlet health and performance drivers, equipping teams to make faster, more targeted, data-driven decisions on the ground.

AI-Based Accounts Payable Automation

An AI-driven accounts payable platform was deployed to fully automate and standardise the payables process, resulting in faster processing, reduced manual intervention, and a more accurate, compliance-ready financial workflow.

Field Incentive Automation

A structured incentive management system was introduced for the Trade Marketing function. The platform manages the end-to-end incentive cycle, from Incentive Circular publication through a defined approval chain, to automatic computation and disbursement at cycle close.

Channel Target Automation

This solution automates the derivation and updating of performance targets for channel programme outlets using historical data mapped against Retailer class and category. All system-generated targets undergo structured review before deployment, ensuring accuracy and business alignment.

Jconnect Plus

JConnect Plus evolved into a fully integrated workforce platform, now supporting end-to-end Performance Management including KRA setting and reviews, alongside meeting room booking and a consolidated service request module.

Profitability Analysis

The Profitability Dashboard delivers brand-wise and geography-wise sales analysis across top-line and bottom-line metrics, enabling designated users to interrogate individual cost components for sharper financial scrutiny and more informed decision-making.

Campaign Manager

Campaign Manager gives brand, media, and trade marketing teams a centralised platform to track, monitor, and evaluate brand activations in real time, bringing greater visibility, accountability, and spend precision to campaign management.

Manpower Budgeting

The JLL Manpower Budgeting Module brings structure and transparency to headcount planning and cost budgeting, maintaining a live record of approved budgets versus actual positions to enable timely variance identification and course correction.

Collaborative Capex And Budgeting

The newly launched CapEx and Budget portal consolidates stakeholder participation into a single platform, streamlining approvals and maintaining a live Budget versus Actuals view to reduce bottlenecks and improve financial governance. 77

E Bot: Eclaim AI Enablement

EClaim, Jyothy Labs proprietary expense management 2025-26 app, received a significant upgrade with the introduction of E Bot, an AI-powered assistant that automatically scans, validates, and processes expense entries. The result is a fully automated reimbursement workflow Annual Report with faster approvals, fewer errors, and zero manual data entry.

RISK AND MITIGATION

Your Company has instituted a comprehensive, proactive, and responsive risk mitigation framework aligned with its core values and long-term business objectives. As an integral part of its corporate governance philosophy, this framework facilitates the systematic identification, assessment, prevention, and mitigation of business risks. The strategy is robust and effective, supporting the sustained well-being of both the organisation and its employees.

The framework enables regular and in-depth monitoring of internal and external factors that may impact business performance. The Board has established a structured risk management mechanism for evaluating and addressing risks, while also ensuring periodic review and necessary updates. Senior leadership drives seamless implementation across functions. The Risk Management Committee, entrusted with overseeing and reviewing the framework, convenes at regular intervals to ensure the continued strength and effectiveness of the risk mitigation strategy

Risk	Nature of the Risk	Mitigation Measures
Macro- Economic Risk	Business performance may be adversely affected by unfavourable macroeconomic conditions in domestic or global markets.	Your Company continuously monitors economic developments that may impact operations. It adopts flexible strategies, including prudent investments, focussed portfolio management, targeted sales initiatives in key markets, and disciplined cost control measures to safeguard profitability and growth.
Statutory Risk	Your Company\u2019s brand value may be impacted if it fails to comply with applicable government regulations, which can result in penalties or restrictions affecting business operations.	Your Company ensures strict adherence to all relevant laws and regulatory requirements. It proactively tracks regulatory changes and implements necessary adjustments to policies and processes to maintain compliance and avoid penalties.
Input Price Risk	Fluctuations in raw material prices may increase input costs, potentially affecting margins and profitability.	Your Company closely tracks commodity price trends and adopts cost management strategies. It focusses on volume-led growth, operational efficiencies, and disciplined pricing actions to minimise the impact of raw material volatility on margins.
Supply Chain Risk	Disruptions in global and local supply chains may lead to delays in procurement, increased costs, and potential impact on profitability.	Your Company prioritises uninterrupted supply of raw materials and seamless distribution. It strengthens supply chain resilience through alternate sourcing, inventory planning, and adoption of advanced digital technologies to improve visibility and efficiency.
Competition Risk	Intense competition in various product categories may restrict growth opportunities and exert pressure on margins.	Your Company invests in product innovation and new product development through R&D, strengthens brand equity through effective marketing, and enhances customer engagement initiatives to maintain competitiveness and drive sustainable growth.
Attrition Risk	Skilled manpower is critical for business growth. Loss of key talent may affect operational efficiency and long-term sustainability.	Your Company fosters a safe, inclusive, and performance- driven work environment. It promotes diversity, equal opportunities, employee engagement programs, and continuous learning initiatives to enhance retention and build a committed workforce. Diversity, equality and inclusion are at the heart of HR policies, reflected in the female workforce comprising 39% of manufacturing facilities manpower.

INTERNAL CONTROLS

Your Company has established a comprehensive internal control system aligned with the scale of its operations and the nature of its business. This framework comprises well-defined policies and procedures designed to ensure compliance with corporate policies, safeguard assets, prevent and detect fraud or errors, and maintain accurate and complete accounting records. The internal control system supports the structured and efficient conduct of business activities while reinforcing the reliability of financial reporting. It also promotes strong governance standards, ethical conduct, and effective management practices across the organisation. The Board of Directors regularly reviews and evaluates the internal control framework to ensure its adequacy and effectiveness. Ongoing assessments are undertaken to confirm compliance with applicable regulatory requirements and to strengthen governance processes where necessary.

CAUTIONARY STATEMENT

This report contains statements that may be forward-looking, including, but without limitation, statements relating to the implementation of strategic initiatives and other statements relating to your Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning our businesss development, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include but are not limited to, general market, macroeconomic, governmental, and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with your Company, legislative developments and other key factors that could affect our business and financial performance. Your Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events or circumstances.