Buy Jyothy Labs; target of Rs 412: Geojit Financial Services

Geojit Financial Services research report on Jyothy Labs

Jyothy Labs Ltd. (JLL) is an Indian FMCG player with products across fabric care, dishwashing, mosquito repellents and personal care. JLL delivered a modest Q1FY26 performance amid a challenging demand environment, with revenue up by 1.4% YoY on 3.6% volume growth, while value growth was constrained by higher grammage and promotional pricing. Gross margin contracted 280bps YoY to 48.5%, due to input cost pressures and heightened competition in the Dish wash segment. EBITDA margin stood at 16.5%, in line with guidance, while PAT declined 4.9% YoY to Rs. 96.8cr. A&P Spend moderated to Rs. 58.9 crore (7.8% of revenue), balancing brand investment with margin protection. H2FY26 to see improvement in margins and the company guides for 16-17% EBITDA margin for FY26. Segment wise, Fabric Care led the growth (3% YoY) while Dishwash and Personal Care remained stable. Household Insecticides (HI) remained under pressure (-9.7% YoY), though management reiterated its turnaround focus with new launches and pricing actions. New launches across categories (Ujala Young & Fresh, Jovia, Maxo aerosols) are gaining traction, with more planned in H2FY26 to drive growth.

Outlook

We value JLL at a P/E of 34x (2yr avg=36x), with a target price of Rs. 412, and recommend BUY rating supported by rural tailwinds, innovation-led growth, improving urban sentiment and recent stock price correction.

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Jyothy Labs - 22082025 - geo