P&G Hygiene margin rebounds sequentially but remains below last year
Standalone revenue slipped 0.44% year on year as expenses rose 2.26%, while a lower tax rate provided limited support to profit.
Filed 12 Nov 2026, 13:39 IST · Procter & Gamble Hygiene and Health Care Ltd (PGHH)
Key takeaways
- Standalone net profit fell 6.68% year on year as revenue declined 0.44% while expenses rose 2.26%.
- Operating margin recovered 3.64 percentage points sequentially to 22.72%, but remained 2.04 percentage points below last year.
- The margin was 12.03 percentage points above the 10.69% median for 74 reported FMCG peers.
Price around the results
Revenue contraction pushed standalone profit lower
Standalone revenue declined 0.44% year on year to Rs 1,145.08 cr, while expenses increased 2.26% to Rs 884.96 cr. That cost-revenue mismatch reduced operating profit by 8.65% and net profit by 6.68% to Rs 195.84 cr. Sequentially, revenue rose 28.45% and operating profit increased 52.96%, reflecting a much better quarter-to-quarter operating outcome.
Sequential margin recovery does not erase the yearly setback
Operating margin expanded 3.64 percentage points sequentially because revenue growth of 28.45% exceeded expense growth of 22.67%. Year on year, the reverse pattern held: expenses rose 2.26% despite a 0.44% revenue decline, narrowing margin by 2.04 percentage points. After falling from 31.84% in Q3FY26 to 23.19% in Q4FY26 and 19.08% in Q1FY27, margin recovered to 22.72% in Q2FY27, ending two consecutive quarterly declines.
Profit received modest support outside operations
Other income rose 71.82% year on year and represented 6.49% of profit before tax, making it a supporting but limited contributor to reported profit. The tax rate declined 0.26 percentage points year on year to 25.26%, which cushioned the earnings decline slightly. Interest rose 1.94% year on year, while depreciation increased 23.28%, adding to the pressure below operating profit.
Margin remains well above the reported FMCG peer median
The company's 22.72% operating margin was 12.03 percentage points above the 10.69% median among 74 FMCG peers that had reported the same quarter. There is no current post-results market move to assess; across seven recent result reactions, the stock fell six times and rose once, with a median absolute move of 0.97%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,145 cr | ₹891 cr | +28.45% | -0.44% |
| Other income | ₹17 cr | ₹9 cr | +80.38% | +71.82% |
| Expenses | ₹885 cr | ₹721 cr | +22.67% | +2.26% |
| Operating profit | ₹260 cr | ₹170 cr | +52.96% | -8.65% |
| Operating margin (%) | 22.72% | 19.08% | — | — |
| Interest | ₹4 cr | ₹0 cr | +1259.26% | +1.94% |
| Depreciation | ₹11 cr | ₹10 cr | +19.29% | +23.28% |
| Profit before tax | ₹262 cr | ₹170 cr | +54.47% | -7.01% |
| Tax | ₹66 cr | ₹43 cr | +52.63% | -7.98% |
| Net profit | ₹196 cr | ₹126 cr | +55.10% | -6.68% |
| EPS (₹) | ₹60.33 | ₹38.90 | +55.09% | -6.68% |
Operating margin of 22.72% compares with a Fast Moving Consumer Goods sector median of 10.69% across 74 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above or below 22.72% in the next quarter.
- Whether revenue growth returns to positive territory after the year-on-year decline of 0.44%.
- Whether other income remains near its 6.49% share of profit before tax.