Gillette India margin falls 5.92 points sequentially as costs jump
Revenue grew 10.80% year on year, but expenses rose faster, while the sequential profit decline was driven mainly by operating costs rather than tax or interest.
Filed 30 Jul 2026, 11:39 IST · Gillette India Ltd (GILLETTE)
Key takeaways
- Gillette India's standalone operating margin fell 5.92 percentage points sequentially because expenses rose 7.87% while revenue slipped 1.13%.
- Revenue increased 10.80% year on year, but expenses grew faster at 11.84%, limiting operating-profit growth to 8.34%.
- Net profit rose 9.44% year on year to Rs 159.45 cr, while other income contributed only 2.44% of pre-tax profit and the tax rate changed by just 0.05 percentage points.
Price around the results
Sequential margin reversal follows a cost surge
Gillette India's standalone revenue slipped 1.13% sequentially, while expenses increased 7.87%, causing operating profit to fall 17.85%. The resulting 5.92-percentage-point margin decline was the sharpest setback after operating margin had risen from 25.62% in Q2FY26 to 35.01% in Q4FY26.
Year-on-year growth was constrained by faster expenses
Revenue grew 10.80% year on year, but expenses rose 11.84%, so operating profit grew by only 8.34% and operating margin narrowed 0.66 percentage points. Net profit still increased 9.44% to Rs 159.45 cr, with the tax rate almost unchanged and interest expense down 1.92% year on year. Other income was only 2.44% of pre-tax profit, so reported profit was not materially supported by non-operating income.
Margin remains well above the FMCG peer median
The company's 29.09% operating margin was 12.94 percentage points above the 16.15% median for the 15 FMCG peers that had reported the same quarter. The quarter nonetheless interrupted the improvement seen in the prior two quarters, when margin rose from 25.62% to 31.36% and then 35.01%.
No current reaction; past result moves were mixed
The stock has not yet recorded a post-result reaction. Across its six most recent result sessions, it rose four times and fell twice, with a median absolute move of 3.85%, indicating that the historical response has been mixed rather than consistently positive or negative.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹783 cr | ₹792 cr | -1.13% | +10.80% |
| Other income | ₹5 cr | ₹5 cr | +4.82% | -21.86% |
| Expenses | ₹555 cr | ₹515 cr | +7.87% | +11.84% |
| Operating profit | ₹228 cr | ₹277 cr | -17.85% | +8.34% |
| Operating margin (%) | 29.09% | 35.01% | — | — |
| Interest | ₹1 cr | ₹3 cr | -69.00% | -1.92% |
| Depreciation | ₹18 cr | ₹19 cr | -4.97% | -12.17% |
| Profit before tax | ₹214 cr | ₹260 cr | -17.70% | +9.51% |
| Tax | ₹55 cr | ₹68 cr | -19.20% | +9.71% |
| Net profit | ₹159 cr | ₹193 cr | -17.17% | +9.44% |
| EPS (₹) | ₹48.93 | ₹59.08 | -17.18% | +9.44% |
Operating margin of 29.09% compares with a Fast Moving Consumer Goods sector median of 16.15% across 15 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 29.09% after the 5.92-percentage-point sequential decline.
- Whether expense growth moderates from 11.84% year on year against revenue growth of 10.80%.
- Whether revenue momentum improves from the 1.13% sequential decline.