Jyothy Labs Q2 FY27 net profit crashes 87.9% to ₹10.6 crore
Synopsis
Jyothy Labs posted a near-wipeout in quarterly profits — down 87.9% to just ₹10.6 crore — even as revenue grew modestly. The real story is the EBITDA margin collapsing from 16% to 2.5% in a single year. The company cushioned the blow with a ₹147 crore buyback at a 15% premium, but the numbers raise sharp questions about cost control and the Pril-Fa transition.
Key Takeaways
Jyothy Labs reported a 87.9 per cent YoY drop in net profit to ₹10.6 crore in Q2 FY27 , down from ₹87.8 crore a year ago.
Revenue grew 3.3 per cent to ₹760 crore , but EBITDA collapsed 83.9 per cent to ₹19 crore .
EBITDA margin fell 1,350 basis points to 2.5 per cent , from 16 per cent in Q2 FY26.
Excluding Pril and Fa , revenue grew 12.4 per cent and volumes rose 8.1 per cent year-on-year.
Company announced a buyback of up to 68.37 lakh shares at ₹215 per share — a 15 per cent premium — with total outgo of ₹147 crore .
Promoters and promoter group entities will not participate in the buyback; record date yet to be disclosed.
Jyothy Labs reported a sharp 87.9 per cent year-on-year collapse in its consolidated net profit to ₹10.6 crore for the second quarter of FY27, even as revenue nudged higher, the company disclosed in its exchange filing on Wednesday, 4 November 2026. The consumer goods maker had posted a profit of ₹87.8 crore in the corresponding quarter of the previous year.
Revenue and Margin Performance
Quarterly revenue rose a modest 3.3 per cent to ₹760 crore, up from ₹736 crore in Q2 FY26. However, the top-line growth offered little comfort against a dramatic earnings deterioration. Earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 83.9 per cent to ₹19 crore, compared with ₹118 crore a year ago. The EBITDA margin contracted by a steep 1,350 basis points, falling to 2.5 per cent from 16 per cent in the year-ago period — a signal of significant cost pressure during the quarter.
Underlying Business Excluding Divested Brands
Excluding the Pril and Fa businesses, Jyothy Labs reported a healthier picture: revenue grew 12.4 per cent year-on-year in value terms, while volumes expanded 8.1 per cent during the same period. This suggests that the drag on headline numbers is substantially linked to the transition or exclusion of those two specific product lines rather than a broad deterioration across the portfolio.
Share Buyback Announcement
Alongside the quarterly results, the company announced a share buyback programme. Jyothy Labs will repurchase up to 68.37 lakh equity shares of face value Re 1 each — representing 1.86 per cent of its outstanding equity — at a buyback price of ₹215 per share. That price represents a 15 per cent premium to the company's market price at the time of the announcement. The total outgo for the buyback is pegged at ₹147 crore, to be executed through the tender offer route. Notably, promoters and promoter group entities will not participate in the buyback. The board has constituted a buyback committee to finalise further details; the record date has not yet been disclosed.
Stock Performance
Shares of Jyothy Labs ended Wednesday's session at ₹189, up 0.32 per cent on the BSE. The stock has traded between a 52-week high of ₹319.05 and a 52-week low of ₹171, according to exchange data, reflecting the broader pressure the scrip has faced over the past year. The buyback price of ₹215 sits well below the 52-week peak, underscoring the stock's correction from recent highs.
Investors and analysts will closely watch the company's cost structure and brand transition strategy in the coming quarters to assess whether the underlying volume momentum can translate into a margin recovery.
Point of View
But the market's muted reaction — the stock barely moved — suggests investors are treating this as a transition quarter tied to the Pril and Fa business realignment rather than structural decay. That interpretation is not unreasonable, but the 1,350-basis-point margin compression is too severe to explain away entirely with brand exits. The buyback at ₹215 — a 15% premium to market but still a third below the 52-week high — reads as a management signal that it believes the stock is undervalued, while also being a selective one given promoter non-participation. The core business ex-Pril and Fa growing volumes at 8.1% is the one genuinely encouraging data point; everything else demands a credible cost-recovery roadmap in Q3.
NationPress
4 Nov 2026
Frequently Asked Questions
Why did Jyothy Labs' net profit fall so sharply in Q2 FY27?
Jyothy Labs' net profit dropped 87.9% year-on-year to ₹10.6 crore in Q2 FY27, primarily reflecting a severe EBITDA margin compression — from 16% to 2.5% — suggesting significant cost pressures during the quarter. The exclusion or transition of the Pril and Fa businesses also impacted consolidated numbers.
What is the Jyothy Labs share buyback announced in November 2026?
Jyothy Labs announced a buyback of up to 68.37 lakh equity shares at ₹215 per share — a 15% premium to its prevailing market price — via the tender offer route, with a total outgo of ₹147 crore. Promoters and promoter group entities will not participate; the record date is yet to be disclosed.
How did Jyothy Labs perform excluding Pril and Fa businesses?
Excluding the Pril and Fa product lines, Jyothy Labs' revenue grew 12.4% year-on-year and volumes rose 8.1% in Q2 FY27. This suggests the underlying core portfolio retained reasonable momentum despite the headline profit slump.
What was Jyothy Labs' revenue in Q2 FY27?
Jyothy Labs reported consolidated revenue of ₹760 crore in Q2 FY27, a 3.3% increase from ₹736 crore in the same quarter of FY26. Revenue growth was modest compared to the steep decline in profitability.
Where does Jyothy Labs' stock stand after Q2 FY27 results?
Jyothy Labs shares closed at ₹189 on the BSE on Wednesday, up 0.32%, after the results were announced. The stock's 52-week high stands at ₹319.05 and its low at ₹171, reflecting broader pressure on the scrip over the past year.
