Why Did Gillette India's Q1 Net Profit Decline by 8%?
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Synopsis
Gillette India's Q1 FY26 earnings reveal an 8% drop in net profit and revenue, raising questions about the company's future direction. Despite this decline, a year-on-year comparison shows growth. Discover how the company's strategies are influencing its performance.
Key Takeaways
- Gillette India's net profit fell by 8.19% in Q1 FY26.
- Revenue decreased by 7.92% compared to the previous quarter.
- Year-on-year revenue growth of 10% was reported.
- Total expenses decreased to Rs 517.97 crore.
- Shares of Gillette India showed positive movement on the stock market.
Mumbai, July 31 (NationPress) - On Thursday, Gillette India announced a decline in its earnings for the first quarter (Q1) of FY26. The company's net profit decreased by 8.19% quarter-on-quarter (QoQ), amounting to Rs 145.69 crore, down from Rs 158.68 crore in the previous quarter (Q4 FY25).
Moreover, revenue from operations fell by 7.92%, reaching Rs 706.72 crore, compared to Rs 767.47 crore in Q4 FY25, as per its filing with the stock exchange.
Total income for the quarter was reported at Rs 713.4 crore, marking an 8.45% decline from Rs 779.21 crore in the preceding quarter.
In its regulatory filing, the company noted that total expenses decreased to Rs 517.97 crore from Rs 569.45 crore in Q4, which included Rs 176.97 crore on raw and packing materials, Rs 81.57 crore on stock-in-trade purchases, Rs 48.89 crore for employee benefits, and Rs 1.04 crore for finance costs.
However, on a year-on-year (YoY) basis, the company achieved Rs 707 crore in revenue for the quarter, which is 10% higher than Rs 645 crore recorded in the same quarter the previous year.
Despite the quarterly downturn in profit and revenue, Gillette India’s Managing Director, Kumar Venkatasubramanian, stated that the company has delivered double-digit growth on both topline and bottom line compared to the same period last year.
He attributed this performance to the company’s integrated growth strategy, emphasizing a strong product portfolio, product superiority, productivity, innovation, and an agile organization.
He further explained that the strategy is designed to foster sustainable and balanced growth while creating value.
On the stock market, Gillette India shares were trading at Rs 11,021, up by Rs 395 or 3.71% on the National Stock Exchange (NSE) around 2:40 p.m.
In the past five days, the stock increased by Rs 182 or 1.68%, and over the last month, it rose by Rs 123.5 or 1.13%.
Point of View
It's crucial to acknowledge the mixed signals from Gillette India's latest financial report. While the quarterly figures show a decline, the year-on-year growth indicates a resilient strategy. This nuanced performance reflects broader market trends and the challenges companies face in adapting to changing consumer demands. We stand by our commitment to delivering accurate and insightful analysis to our readers.
NationPress
22/09/2025
Frequently Asked Questions
What caused Gillette India's net profit decline?
The net profit decline was primarily attributed to decreased revenue from operations and total income. The company reported an 8.19% drop in net profit for Q1 FY26.
How does Gillette India's current performance compare to last year?
On a year-on-year basis, Gillette India reported a 10% increase in revenue compared to the same quarter last year, indicating growth despite quarterly declines.
What is Gillette India's strategy for growth?
Gillette India focuses on an integrated growth strategy that emphasizes product superiority, innovation, and an agile organization to foster sustainable growth.
How are Gillette India's shares performing?
As of the latest trading session, Gillette India's shares were up by 3.71%, trading at Rs 11,021, indicating positive market sentiment.
What were the total expenses for Gillette India in Q1 FY26?
Gillette India's total expenses for Q1 FY26 were Rs 517.97 crore, down from Rs 569.45 crore in the previous quarter.
