PGHH profit falls 34% as operating margin hits three-quarter low
Revenue declined 4.86% year on year, but expenses rose 7.53%, pushing operating margin down 9.33 percentage points.
Filed 29 Jul 2026, 12:54 IST · Procter & Gamble Hygiene and Health Care Ltd (PGHH)
Key takeaways
- Standalone net profit fell 34.25% year on year to Rs 126.27 cr as revenue declined 4.86% while expenses rose 7.53%.
- Operating margin narrowed 9.33 percentage points year on year to 19.08%, marking a third consecutive quarterly decline.
- The company still reported a 19.08% operating margin, 2.94 percentage points above the 16.14% median for 14 reported FMCG peers.
Price around the results
Revenue slipped, but profit fell much faster
Standalone revenue declined 4.86% year on year and 5.30% sequentially to Rs 891.46 cr, while operating profit fell 36.11% year on year and 22.10% sequentially. The sharper profit decline reflects the cost squeeze rather than sales alone. Net profit fell 34.25% year on year to Rs 126.27 cr, with EPS down 34.26% to Rs 38.90.
Costs drove the sharp margin contraction
Year on year, expenses rose 7.53% even as revenue fell 4.86%, causing operating margin to narrow 9.33 percentage points. Sequentially, expenses declined only 0.22% against a 5.30% revenue decline, taking margin down 4.11 percentage points. This was the third straight quarterly fall in operating margin, from 31.84% in Q3FY26 to 23.19% in Q4FY26 and 19.08% in Q1FY27.
Tax relief did not offset weaker operating profit
The tax rate fell 1.88 percentage points year on year and 4.23 percentage points sequentially, cushioning the decline in net profit. Other income accounted for 5.56% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution. Interest expense rose 285.71% year on year, although it fell 91.32% sequentially.
Margin remained above the reported FMCG peer median
PGHH's 19.08% operating margin was 2.94 percentage points above the 16.14% median among 14 Fast Moving Consumer Goods peers that had reported the quarter. The company ranked ninth from the bottom on this comparison, placing its margin above the median but not among the sector's highest reported levels. There is no post-result market reaction yet; after the past six results, the stock fell five times and rose once, with a median absolute move of 0.97%.
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 | ₹891 cr | ₹941 cr | -5.30% | -4.86% |
| Other income | ₹9 cr | ₹12 cr | -24.38% | +22.63% |
| Expenses | ₹721 cr | ₹723 cr | -0.22% | +7.53% |
| Operating profit | ₹170 cr | ₹218 cr | -22.10% | -36.11% |
| Operating margin (%) | 19.08% | 23.19% | — | — |
| Interest | ₹0 cr | ₹3 cr | -91.32% | +285.71% |
| Depreciation | ₹10 cr | ₹10 cr | +0.31% | +5.50% |
| Profit before tax | ₹170 cr | ₹218 cr | -22.23% | -35.92% |
| Tax | ₹43 cr | ₹65 cr | -33.27% | -40.31% |
| Net profit | ₹126 cr | ₹153 cr | -17.54% | -34.25% |
| EPS (₹) | ₹38.90 | ₹47.17 | -17.53% | -34.26% |
Operating margin of 19.08% compares with a Fast Moving Consumer Goods sector median of 16.14% across 14 peers that have reported Q1FY27.
What to watch
- Whether revenue recovers from Rs 891.46 cr after the 4.86% year-on-year decline.
- Whether operating margin holds above 19.08% after three consecutive quarterly declines.
- Whether the tax rate remains below 25.56% and other income stays near 5.56% of pre-tax profit.