Gillette India lifts margin sharply as profit rises 21.32%
Standalone operating margin reached 35.01% after expenses fell year on year, while the stock's initial 4.85% gain exceeded its recent results-day pattern.
Filed 27 May 2026, 13:12 IST · Gillette India Ltd (GILLETTE)
Key takeaways
- Standalone net profit rose 21.32% year on year even as the tax rate increased 1.62 percentage points.
- Operating margin widened 5.59 percentage points to 35.01% year on year as expenses fell 4.98% while revenue grew 3.20%.
- The stock rose 4.85% on the filing day, above its 2.90% median absolute move after the previous five results.
Price around the results
Profit growth outpaced modest revenue momentum
Gillette India reported standalone net profit growth of 21.32% year on year on revenue growth of 3.20%. Profit before tax rose 23.98%, helped by lower depreciation and a 4.98% reduction in expenses. Other income contributed only 1.92% of pre-tax profit, so the quarter's earnings growth was not materially dependent on non-operating income.
Cost control drove the margin recovery
Expenses fell 4.98% year on year while revenue increased 3.20%, expanding operating margin by 5.59 percentage points. Sequentially, revenue was nearly flat at +0.25%, but expenses declined 5.07%, lifting margin by 3.65 percentage points. The higher tax rate, up 1.62 percentage points year on year, partly offset the operating improvement rather than flattering net profit.
Margin recovery extends for a second quarter
Operating margin improved from 25.62% in Q2FY26 to 31.36% in Q3FY26 and 35.01% in Q4FY26, marking two consecutive quarters of recovery after the Q2 decline. Gillette India's margin was 18.26 percentage points above the 16.75% median across 26 Fast Moving Consumer Goods peers that had reported the quarter.
Initial market reaction was larger than usual
The stock gained 4.85% on the filing day, with trading volume at 7.5 times its usual level. That move was above the 2.90% median absolute reaction after the previous five results, when the stock rose three times and fell twice. The gain had narrowed to 2.34% below the filing-day level after five sessions.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹792 cr | ₹790 cr | +0.25% | +3.20% |
| Other income | ₹5 cr | ₹8 cr | -33.78% | -57.58% |
| Expenses | ₹515 cr | ₹542 cr | -5.07% | -4.98% |
| Operating profit | ₹277 cr | ₹248 cr | +11.91% | +22.82% |
| Operating margin (%) | 35.01% | 31.36% | — | — |
| Interest | ₹3 cr | ₹4 cr | -10.11% | +2.49% |
| Depreciation | ₹19 cr | ₹19 cr | -2.98% | -22.91% |
| Profit before tax | ₹260 cr | ₹232 cr | +12.02% | +23.98% |
| Tax | ₹68 cr | ₹60 cr | +13.17% | +32.22% |
| Net profit | ₹193 cr | ₹172 cr | +11.63% | +21.32% |
| EPS (₹) | ₹59.08 | ₹52.93 | +11.62% | +21.31% |
Operating margin of 35.01% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.85% | +4.87% |
| Next session | +1.59% | — |
| 5 sessions | -2.34% | -0.26% |
| 15 sessions | -0.65% | — |
| 30 sessions | -0.58% | — |
Volume on the results session was 7.50× its 20-day average.
What to watch
- Whether operating margin holds above 35.01% after the Q4FY26 recovery.
- Whether expenses continue to grow below revenue after falling 4.98% year on year.
- Whether the tax rate remains close to 25.97% after rising 1.62 percentage points year on year.