NEW DELHI–Indian consumer goods manufacturer Jyothy Labs reported an 87.9% decline in consolidated net profit for the second quarter of fiscal 2027, as a sharp deterioration in operating margins overshadowed modest revenue growth.
The company posted a net profit of Rs 10.6 crore for the July-September quarter, compared with Rs 87.8 crore during the corresponding period last year, according to a stock exchange filing released Wednesday.
Revenue from operations increased 3.3% to Rs 760 crore, up from Rs 736 crore in the second quarter of fiscal 2026.
Despite the revenue increase, the company’s operating profitability weakened significantly.
Earnings before interest, taxes, depreciation and amortization (EBITDA) plunged 83.9% to Rs 19 crore from Rs 118 crore a year earlier.
The EBITDA margin contracted by 1,350 basis points to 2.5%, compared with 16% in the year-earlier quarter, reflecting substantial pressure on the company’s operating performance.
However, the company’s underlying business recorded stronger growth when excluding its Pril and Fa brands.
Revenue excluding those businesses increased 12.4% year over year in value terms, while sales volumes rose 8.1% during the quarter.
Alongside its quarterly financial results, Jyothy Labs announced plans to repurchase shares worth up to Rs 147 crore.
Under the proposed buyback, the company will acquire as many as 68.37 lakh equity shares with a face value of Re 1 each, representing approximately 1.86% of its outstanding equity.
The buyback price has been set at Rs 215 per share, representing a premium of approximately 15% to the company’s prevailing market price, according to its exchange filing.
The repurchase will be conducted through a tender offer, allowing eligible shareholders to sell their shares back to the company at the predetermined price.
Jyothy Labs said its promoters and promoter group entities will not participate in the buyback.
The company’s Board of Directors has established a buyback committee to finalize the transaction’s details, although a record date for determining eligible shareholders has not yet been announced.
Jyothy Labs shares closed Wednesday’s trading session at Rs 189 on the Bombay Stock Exchange, gaining 0.32% for the day.
According to exchange data, the stock has traded between a 52-week high of Rs 319.05 and a low of Rs 171.
The planned share repurchase comes as the company faces a sharp decline in quarterly earnings despite continued sales growth in parts of its consumer products portfolio. (Source: IANS)
