Jyothy Laboratories Limited (NSE: JYOTHYLAB) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
M.R. Jyothy — Managing Director
Pawan Agarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Manoj Menon — Analyst
Sonal Minhas — Analyst
Harit Kapoor — Analyst
Vishal Shah — Analyst
Amit Purohit — Analyst
Senthil Manikandan — Analyst
Presentation:
operator
Sadies and gentlemen, Good day and and welcome to the Jyoti Labs Q1FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing STAR and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Menon from ICICI Securities Limited. Thank you. And over to you, sir.
Manoj Menon — Analyst
Hi everyone. It’s a wonderful good evening from the ISEC team. It’s our absolute pleasure once again to host the management of Juji Labs Limited for the results conference call. The company is today represented by Mr. Jyoti, Chairperson and Managing Director and Mr. Pawana Garwal, CFO and EVP over to the management for the opening remarks post which will open the floor for Q and A. Thank you. Over to you, Mano.
M.R. Jyothy — Managing Director
Thanks Manoj. Good afternoon everyone. Thank you for joining us today for Jyotilabs Limited Q1FY26 earnings call. Our financial results and investor presentations have been uploaded to our website and to the stock exchanges. I trust you have had the opportunity to review them. The broader operating environment in Q1 remained mixed with lingering inflationary pressures and fragile urban sentiment. Consumers, particularly in urban centers, continue to either downtrade or defer non essential purchases. These behavioral shifts have been a recurring theme across the sector over the past five, six quarters. However, we believe we are now at the cusp of a gradual, broad based recovery.
The Indian Meteorological Department’s forecast of an above normal monsoon is encouraging. A favorable monsoon not only augurs well for rural demand but also plays a vital role in stabilizing food inflation. It is one of the key levers that could revive household spending in the coming quarters. Recent fiscal measures announced by the government such as income tax relief and targeted rural welfare schemes combined with the RBI calibrated interest rate cuts are already beginning to reflect in consumer sentiment. If these tailwinds sustain, we expect the demand environment to firm up meaningfully especially from Q3 onwards. While global uncertainties, particularly the geopolitical tensions in the Middle east have triggered raw material supply disruptions and cost volatility.
The overall trend points towards improving stability. Crude oil prices have softened, although derivative costs such as lab, sles, PFAD and PKFAD are yet to correct proportionately due to lag effects and processing costs. These should ease gradually as the supply chain normalizes channel dynamics continue to evolve. Rural markets once again outperformed urban areas demonstrating inherent resilience. General trade faced volume pressures while modern trade including E Commerce and quick commerce, sustained double digit growth. That said, the rise of quick commerce must be viewed with nuance. While its share in the overall mix is expanding, it largely substitutes traditional outlets rather than contributing to incremental consumption.
Pricing remains the primary differentiator on these platforms. Due to similar user experiences, encouraging early signs of urban demand recovery have started to emerge, especially from July onwards. However, we need to wait and watch the demand scenario, especially in coming months and quarters. Now let’s look at the performance of our various categories in Fabricare, both main Wash and post wash segments delivered a satisfactory performance clocking mid single digit volume growth. Our liquid detergent range continues to stand out. It more than doubled its growth versus the same period last year and delivered strong sequential double digit value growth.
With brands like Morlite, Henco, Hencomatic, Ujala and Mr. White catering to varied consumer needs, this category remains a strong pillar of our growth. That said, it must be noted that competitive intensity in this space is on the rise. We are actively monitoring the pricing environment and are taking calibrated steps to preserve our value proposition. Detergent powders and bars also perform steadily. We are pleased with the early market response to our fabric conditioner Ujala Young and Fresh which is gaining traction in select markets. During the quarter we successfully launched a TV commercial in select markets featuring actress Kirti Suresh and docking the product.
The dishwasher segment faced intensive competitive activity particularly in terms of damage offers. This impacted value growth. Despite healthy volumes, Spriliquid posted double digit volume growth and Exobar grew in high single digit. These numbers are a testament to brand strength and continued consumer preference. While year on year numbers were flat in the personal care segment, sequential growth gives us confidence. Jovia, our new beauty soap is gaining market acceptance and our intensified efforts behind Marco brand are already showing encouraging signs through enhanced visibility and consumer recall. The household insecticide segment remains a work in progress while near term growth may remain muted.
We are focused on improving profitability and scaling up the liquid vaporizer category and recent launched NTDs like Aerosols and rackets. Our medium term goal remains clear to significantly reduce losses and turn around this category in a capital efficient manner. Now I will talk about the financial performance of the company. Revenue from operations for Q1 stood at Rs.751 crore reflecting 1.4% value growth and 3.6% volume growth. Year on year the value volume gap was primarily driven by higher grammage and promotional price offs in select categories. Gross margin was at 48% down 330bps year on year due to input cost pressures and increased competitive intensity in dishwash.
We implemented calibrated price increases in some of the product categories to partially offset these pressures. Advertisement and promotion spend stood at 7.8 in Q1, moderated slightly to reflect the prevailing market context. However, our commitment to long term brand investment remains intact as evident from our annual brand spends. Despite elevated input cost and volume pressures, we maintained our EBITDA margin at 16.5%. In line with our guidance, operating EBITDA stood at rupees 124 crore and PAT at rupees 97 crore. We approached second half of the FY 2026 with cautious optimism. While the near term headwinds, especially in the urban markets persist, we believe the tide is slowly turning.
A combination of a good monsoon, easing inflation, supportive government policies and improving consumer sentiment lays the foundation for stronger performance in H2. We expect Q3 and Q4 to show meaningful improvements supported by recovery in urban discretionary spending, discretionary spending momentum in the festive season, increasing traction from our new product launches and ongoing gains in cost efficiency and distribution expansion. We remain focused on innovation category development, scaling up new launches, digital execution and sharpening our go to market strategy. We are committed to delivering profitable, sustainable and capital efficient growth. Our strategy has been consistent, balancing agility with discipline while being acutely consumer centric.
Before I close, I want to thank all our stakeholders, customers, shareholders, employees and partners for their trust and continued support. We look forward to building on this foundation and and delivering superior value in the quarters ahead. With that, I conclude my opening remarks and look forward to your questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Sonal from Precinct Capital. Please go ahead.
Sonal Minhas
Hi, this is Sonal Minas. I hope I’m audible.
Pawan Agarwal
Yes, you are.
Sonal Minhas
My question is with regard to the household insecticides segment. I’m sure there are some discussions at the management level as to how much bleed we can sustain as a team, as a as a company beyond which we decide to sell this business off or carve this out. Any Guidance for investors, shareholders.
Pawan Agarwal
So we have indicated in the past that we are actively working towards turning around this category, household insecticides. And we have taken certain measures and you know, there are few things which are in pipeline. We have launched new products, also aerosol and rackets in the previous quarter and we have taken some price increases in coil. So there’s a lot of action which is happening in order to improve the performance of this category. We have also indicated in the past that, you know, we are hopeful that in next year FY27 we’ll be able to turn around this category and necessary steps are being taken in that direction.
So as of now, there is no intention to sell or divest this particular line of business of the company.
Sonal Minhas
Got it. And so FY27 should be considered as like the year where we decide that this is going in the right direction or it’s not going in the right direction.
Pawan Agarwal
Yeah, I mean the progressive steps that we are taking, the results should be visible slowly and gradually and by second half of the next financial year is what we are aiming to turn this category profitable.
Sonal Minhas
Got it. My second question is with regard to the softness in demand in the urban side. Wanted to understand from more like what you seeing this demand, Is this something which was earlier fueled by credit or was something which was largely driven by, let’s say some segment of population which consumed a lot earlier and did not. And hence there is kind of a delay in the next sort of demand that is coming because the products we have here, the fabric care, dishwashing, these are, these are readily consumable. I understand they are now trading on volume.
But what was the issue in terms of this growing very fast last year? Was there some stocking in the channel which is getting released now this year? And hence we see demand come back or this is linked to credit on the online channels, people bought on credit. Just examined to get a sense of this.
M.R. Jyothy
So Sanaa, largely this softness in demand, when we say it is moving from traditional trade to modern trade and your E commerce and largely E commerce and your quick commerce gaining, you know, bigger traction, which we are also seeing internally in the company, we are growing at double digits there. But not all of it is getting converted. Basically ideally it should have been that all of it, which is your general trade and modern trade, all of them grow and this should be ideally a top up. But consumers are seeking convenience and more and more we see traditional outlets lose out on business or are not able to generate that kind of sales, some of them even closing down.
So that’s the kind of thing when we are seeing more urban thing where these quick commerce and E commerce exist. That’s where we are seeing that shift. While for us rural seems to be okay. So this is what we are seeing. There’s nothing in relation to credit or anything of that sort.
Sonal Minhas
Got it. So is there a need for repackaging, rebranding on these modern channels because the consumer is looking at a different product or different damage or different packaging price point altogether.
M.R. Jyothy
Yeah, yeah. So all that is happening while we are talking. So hence when we, when we say that most of the business is that is affected is only the general trade, our modern trade, E commerce, all of that are growing in higher double digits.
Sonal Minhas
So as you mentioned. Yes.
M.R. Jyothy
Yeah, yeah. So there the consumers where we are packaging it v skus the pricing, all of it is being taken care. Investment, you know, all of that is being taken care of. It’s the traditional channels which obviously if as a consumer especially in metros, you know where time is also a thing. Time, traffic, all of that also money. Right. An E commerce and a quick commerce is there to satisfy all of that. That’s where the traditional outlet seems to lose. So that’s the shift we are seeing in terms of channel and that may stay for some time.
Sonal Minhas
I’ll fall back in between. Thanks for answering my questions. Thank you.
M.R. Jyothy
Thank you.
operator
Thank you. The next question is from the line of Manoj Menon from ICICI Securities. Please go ahead.
Manoj Menon
Hi team. Just a few clarifications if I may Judith1 you know any more? Let’s say qualitative for quantitative color you could give on let’s say Juvia.
M.R. Jyothy
See I can only say qualitatively Manoj that as of now we are seeing some repeats happening and it being received fairly well. Numbers. We won’t be able to say it is overall covered in the thing. But yes, it’s a very small start but a good start.
Manoj Menon
Understood. So can I just. Let’s say if I may is it in line with your expectations? Exceeded, underwhelmed, you know, how do you. How do you look at it?
M.R. Jyothy
I would say it is in line, neither exceeded nor. So it’s fairly okay from the current demand perspective and we are taking it slow and steady.
Manoj Menon
Okay, Understood. Secondly, secondly I’m going to look at the overall volume growth of 3.6% and also the. Let’s say the segment growth, revenue growth rather you know just trying to link both and trying to understand which are the categories which would have driven these volume growth. Let’s say the categories would have grown, let’s say far higher than the overall.
Pawan Agarwal
So if you look at Manoj, volume growth in dishwash category has been quite impressive. In bars we have high single digit. In liquid we have double digit in mid teens. So there the volume growth has been pretty decent. In Fabricare also Mainwash and post wash both have done reasonably well in in the mid single digit. In personal care we have taken price increases as we had indicated in the earlier call. But there we have some stress on the volume and actually of course the coil is having pressure on the volume side. So that’s the broad construct in personal.
Manoj Menon
Wash. What we broadly heard from two other listed players actually that the personal wash challenge is largely to do with the 10 to price point. Right. Would that be a fair comment for you?
Pawan Agarwal
Also sorry, come again.
Manoj Menon
Manoj Personal Wash or in groups. Actually you know, the problem situation, you know, identifications I’ve heard from HUL and Bobjay in fact has been that it’s largely limited to Rupees 10 price point range reduction which is resulting in an overall volume decline. Would that be a same assertion for UCLABS as well?
Pawan Agarwal
Yeah, sort of. You know we also tend to agree.
Manoj Menon
Secondly.
Pawan Agarwal
No point on the volume growth. If you look at the numbers excluding hi segment then our volume growth is close to 5% 4.8% actually. So that way volume growth has been pretty decent on an overall company level basis.
Manoj Menon
Understood this one clarification here. There is no category in which volume growth has been significantly ahead of revenue growth. Right.
Pawan Agarwal
In dishwash, as I said, the liquid dishwash has been volumes of has been pretty high.
Manoj Menon
Okay, sure. And if I heard correctly, Jyoti ma’, am telling little earlier in the initial remarks that higher competitive intensity or activity in home care. Right. Did I hear it correctly?
Pawan Agarwal
Yeah, I mean in dishwash we have seen intensity.
Manoj Menon
Okay. Okay, one last thing and I’ll talk to that and fall back in the queue again. Some color in terms of your home care performance. Right. Because there are different segments, different formats, you know, liquids has been a global adoption, you have seen, etc. So any color you could add on home care and how do you see home care performance for the next, let’s say one or two years.
M.R. Jyothy
So Manoj, competitive activity, when we say it’s not restricted to one category, it is there across the categories that we are in is highly competitive. Every segment, every new category or new launch, everything has to, you know, are facing that kind of a thing. And rightly so. With so many players coming in and trying to make good or you Know, trying to revise that consumer sentiments, trying to create more volume related purchases, you know, trying to woo the consumers. I think all of them are being competitive and which is what maybe is required for the current environment.
And that is. And we are also accordingly calibrating whether be it the grammage, be it the price, price cut or you know, offering of promos. So it’s a combination of all of this. It’s not one category alone, it is there across. And I think that this whole thing, when everybody does it, basically the consumer sentiments will be better going forward. Maybe it will result in more of volume, you know, volume uplift going forward. Yes. But being in home care. Yes, it’s a very, very competitive, you know, segment and it looks like that will remain going ahead.
Yeah. But we are trying our best to see, to bring in relevance and to bring in the best quality to the consumers at a good price. So yeah,
Manoj Menon
thank you so much and all the best.
M.R. Jyothy
Thank you.
operator
Thank you. The next question is from the line of Hareet Kapoor from Investec. Please go ahead.
Harit Kapoor
Yeah, good evening. I had a few. So one was on the pricing versus volume growth. So difference is about 2 and a half percent, 2.2%. Now does this quarter reflect the full impact of price cuts grammar increases in your view? My question is really just to understand, you know, the price volume differential at two, two and a half 3%. Is this, you know, is this fully reflecting the actions in the quarter or it was there were further actions mid quarter where because of which this differential would increase. In Q2.
Pawan Agarwal
It reflects broadly, it covers the full picture. So this gap you will see probably narrowing volume will say value going forward.
Harit Kapoor
So pa when we should see this, you think like when the from Q3 or the the narrowing or should from Q2 only a little bit Q3 would.
Pawan Agarwal
Be the fair, you know, time frame Q2 more or less it will the same. But Q3 onwards it should start narrowing because you know last year the extra damages, higher promotions etc. Intensity increased. Quarter two onwards it picked up momentum. So I think quarter three onwards you should see this gap narrowing.
Harit Kapoor
Got it. The second thing was on dishwasher mentioned very high single digit growths in bars and double digits in liquids. So the differential looks like almost a double digit impact which means like a higher grammar plus price cut impact. Just wanted to get your sense about is this the most competitive space right now for you in terms of a subcategory? Are you seeing the highest level of competitive activity there?
Pawan Agarwal
No, I mean it’s very difficult to point it out in that manner because as Jyoti indicated, competitive intensity is high across segments. However, recently off late we have seen intensity increasing in dishwash segment. But other categories also have high competition.
Harit Kapoor
Got it. And if you look at the EBIT margins on the standalone side, you’ve seen a reduction sequentially from Q4 to Q1 in the fabric care. But dishwash has increased now, expanded. Now I didn’t understand this because if you think about price cuts are higher in Vishwash in terms of volume, volume differential also the commodities are not extremely different. So if you could just help me understand, is there a different significant difference in the RM structure in fabric care because of which, you know, sequentially you’ve seen a fall versus.
Pawan Agarwal
No in dishwash? You are right. Your observation is correct. You know, the margins, the reasons for margins, operational efficiency and also like the plant level, you know, manufacturing box wise, the operational efficiency we drove and little bit of, you know, marketing spend allocation between categories also that also, you know, take.
Harit Kapoor
Okay, got it. That’s, that’s very clear. And last couple of things. One was both for Jyoti, you know, you did mention July is a little bit better. So are you saying that kind of June exits and early July have been better than the average volume growth of Q1? Is that the comment you’re making?
Pawan Agarwal
No, July, we are seeing early signs in terms of secondaries. You know, secondaries are picking up in July. Not necessarily in June, but July we saw some, you know, towards the second half month we saw some improvement on the side. So. But it’s, it’s too short a period to draw any conclusion. But these are our early readings.
Harit Kapoor
Yeah, very clear. And last thing was on this, you know, you mentioned innovation to be a driver in your outlook. You know, do you see a substantial increase in our own innovation intensity in 2H in line with our estimation of a growth improvement in the macro? Is that the way we should think about it? I’m thinking about FY26. So should innovation intensity be. Would we see more launches in H2 coinciding with hopefully an improved demand environment?
M.R. Jyothy
So Harith. Yes, in a way. I mean seeing the current scenario, we speak tried to hold on and we are, we’ll see better things coming in Q3, Q4, it will be slightly better than your first half.
Harit Kapoor
Got it. Those are my questions. Thank you.
M.R. Jyothy
Thank you.
operator
Thank you. The next question is from the line of Vishal from Ask Investment Managers. Please go ahead.
Vishal Shah
I’ve seen a good show on a tough environment. Two questions from my side liquid. Historically they’ve been priced at the premium but our ground checks are suggesting that companies take some price correction. It can compete with our Texel. My question is that how do you plan to communicate your differential versus Survexel of the largest larger brand dealer in the market so that product security comes out. And second question is on Young and Fresh. Again your acceptance seems to be quite high. So I think we’re planning to roll out some media campaigns. What are the medium term plans for Young and Fresh? Can it be a 200, 300 crore brand in 2 to 3 years time span?
M.R. Jyothy
So Vishal. So we are definitely, I think once a consumer uses Renco there is no. They’ll continue to use that and that we are very sure of and we are investing behind the brand, you know in markets where it makes a difference, not the entire country. But yes, we have selective markets for where you know the appreciation for premium products are there and there we choose to spend. So that is on Henpu and the differential is also being mentioned in the the creative things that we are, the creative copies that we are spending on and on Young and Fresh.
Yes it is. The initial readings are fine. We hope that it continues and we’ll continue to invest where it matters. So that’s, that’s on Young and Fresh.
Pawan Agarwal
Yeah, I mean it’s, it’s early days and the initial response is encouraging and you know, now let’s wait and watch.
Vishal Shah
The fabric and margin stabilize in one tier stand. I understand increase competitive part is there. Competition will be on the higher side but this is stabilized. What are the expectations?
Pawan Agarwal
See it’s very, very volatile situation right now. As you know, as you are aware the liquid detergent, the way you know, margins are fluctuating and the competitive intensity is there right now. You know this quarter’s margins are lower compared to last year. But I think this year looking at the current situation and you know, next few quarters, the visibility that we have and the sense that we are getting from the market, the margins will be slightly lower compared to FY25.
Vishal Shah
Is there any update on any event. Given that you’ve been accumulating cash? So I think you have been looking out in developing acquisition but any update on that?
Pawan Agarwal
Yes. So we are in pursuit of you know, finding the right fit, you know. And in that regard, you know we are evaluating few assets and at an appropriate time the information will be shared. With the investor community.
Vishal Shah
Thank you. Wishing you all the best.
Pawan Agarwal
Thank you.
operator
Thank you. The next question is from the line of Amit Purahood from Elara Capital Please go ahead.
Amit Purohit
Yes sir. Thank you for the opportunity. So just on this price versus volume grab you indicated it will narrow down. But I just want to know you saying one dishwash competitive intensity is increasing. Have you taken any further pricing action year to date and if that’s so, then in second half we would have started the base effects of benefits of soap price increase will also start coming in. Right. So to that extent you still think that that will nullify and the narrowing would continue and probably for the full year exit maybe a flattish kind of a volume or you think this will, this will only. I mean I’m just trying to understand what it will be to negate the effect of soap price increase that we would have taken in second half. When we know that competitive intensity is. Very high
Pawan Agarwal
in soaps, our price increases we have taken slightly later compared to other players. And it is because we have multiple categories and within, within that we have sub segments. So the volume value relationship cannot be established in a direct manner the way you indicated. So overall looking at all the factors, we believe that this gap should narrow down quarter three onwards. But it’s not going to be completely eliminated in the second half of the year is what we feel.
Amit Purohit
Sure. And second on the margin outlook, sir, we did 16.5% this quarter. How do we look at from a full year basis? Because there are a lot of seasonality in the margins as well. So just wanted to know your thoughts. Yeah, I mean touching 17% or so.
Pawan Agarwal
So the current situation in the market is known to everybody. And the actual margin overall as we indicated earlier also would be, would be under pressure H2 with demand picking up and the overall environment being conducive, there could be a little bit of improvement over there. But an overall basis for the year we still believe that between 16 and 17% margin is possible.
Amit Purohit
Okay. And anything on the volume outlook you want to comment for FY26?
Pawan Agarwal
Difficult. It’s very difficult to comment on volume.
Amit Purohit
Okay, thanks a lot sir. Thank you.
Pawan Agarwal
Thank you.
operator
Thank you. The next question is from the line of Sahil Shivsat from Delta Group. Please go ahead.
Unidentified Participant
Hi. Thank you so much for taking the question. So my first question is on what strategy we have for urban and rural markets going forward. And my second question is on marketing spending. How are we going to plan for them? Thank you so much.
Pawan Agarwal
So let me address your second question first. So marketing spend. So we are committed to invest behind our brands and in that direction. We every quarter, you know, our spends are more or less in line with our overall Stated strategy which is between 8 and 9%. And on an annualized basis you see the number, you know, hovering between between eight and nine. So that is likely to continue at least in the near term. And on the first question I would request Jyoti to answer urban versus rural.
M.R. Jyothy
So Sahil right, the urban versus rural strategy for us right now rural contributes around 40% for us. And urban is the one that is right now. While we are putting all our efforts to see that both urban and rural both perform. For us, rural is the one that is currently performing. And we are still investing in reaching as many outlets as possible. That is a continuous agenda. And as of last year, as we completed, we reached 1.3 million retail outlets directly. Now coming to urban, we are seeing growth in urban more from a modern trade, e commerce that part of it and not in the traditional retail which contributes largely.
So while your modern trade and e commerce are growing, the traditional outlets are not to that effect growing. So that is where the whole issue is. But hopefully that should change going forward. If consumers if the current situation in terms of demand and things may change. Hopefully from the second half onwards, with good monsoon and with government spending and things like that, we are hopeful that at least from the second half things turn to be better. Thank you.
Unidentified Participant
Thank you.
operator
Sir. Please go ahead. Thank you. The next question is from the line of sentinel Manikandan from I thought pms. Please go ahead.
Senthil Manikandan
Good evening. Just couple of questions. First is on the distribution. Like Jodi Mamano mentioned, there is pressure on the general trade channel. Any initiatives internally the company has taken to further demand in this channel.
M.R. Jyothy
It’s the usual thing like see for us it is while we are continuing to service the retail outlets and things like that. It’s the consumers who are seeking more convenience who are turning into your modern trade and E commerce. I think all of us are examples of seeking convenience. We see it at our own homes that we prefer to when there is less time and somehow we try and order everything online which used to be all of us going to traditional outlets and buying.
Now that is shifting. So while we are servicing the retail outlets, but they seem to be not getting consumers on a regular basis. And there you see closure of certain outlets and the overall sales coming down there. While we are trying to be competitive both in modern trade and E commerce, we are also trying to extend that bit in the general trade. But not completely right. So because there is still an element of convenience which obviously they cannot match even if you try and do by pricing, it is still the convenience that takes one step ahead in terms of your modern trade which is your E commerce that they deliver.
So we are trying our best while we that’s what we can do and we’ll be consistent with doing that. What we can do is only, you know, maybe keep increasing the number of retail outlets so that the, you know, that many number of outlets add to that additional revenue for us and things will improve maybe later.
Senthil Manikandan
Second question is on the innovation side. So if you can share some data in terms of NPD’s launched over the last three years, percentage of sale and it could be very helpful in terms of tracking the NPD side of the business.
Pawan Agarwal
We do not share unfortunately the innovation related data. So you will come to know as and when it gets launched and we have a strong pipeline of npd. That much I can tell you.
Senthil Manikandan
Thanks and all the best.
Pawan Agarwal
Thank you.
operator
Thank you. The next question is from the line of Sonal from recent Capital. Please go ahead.
Sonal Minhas
Hi, thanks for taking my question again. Wanted to understand what are the terms of trade for modern and quick commerce. Sorry. For more pertinent to quick commerce compared to general trade. Are there more margins, are there more days? Just wanted to understand that.
Pawan Agarwal
So in general trade we have largely cash and carry business in most part of the most regions of the country. But in modern trade we extend credit and it varies again the terms of trade are negotiated, discussed with individual players. So it’s very difficult to give you the sense. But we do extend credit to modern trade ecosystem cost players. So that’s all I can tell you.
Sonal Minhas
So quick commerce roughly works around 60, 90 days of credit.
Pawan Agarwal
No, it varies Again retail chains, E commerce platform, quick commerce platform, you know, cash and carries, you know, outlets. So it’s institutions, it’s a, it’s a mix. So overall we can say a basket approach. If you see about 30, 30.
Sonal Minhas
Got it. Understand. And my second question was I’m sure you guys are tracking the category leaders in E commerce and quick commerce in the categories which you operate in. So let’s take for example the dishwash category or the detergent category. Are there newer names which are in the top three top five list there or these are the same players like you who have done well on the traditional and are doing well. So you’ve seen some new names who doing exceptionally well and are in the top 3, 4, 5 category in the categories you operate in?
Pawan Agarwal
No, these are the usual suspects.
Sonal Minhas
Okay, so no D2C brands trying to break in and becoming the top two, three players in big E commerce channels that you’re Looking at
Pawan Agarwal
at least we. Have not seen that.
Sonal Minhas
Understand. And if I can quickly squeeze in another question. You did mention there is a good NPD product line which you should look at for H2. My question was more pertinent to if you were to look at two, three years out perspective. I don’t know if you can share this, but are there any new categories from the four categories we operate in, where we are, which we’re looking at, which are interesting, where we’re doing active development which are not part of the Sven categories basically. Hello.
operator
Thank you. The line for the management has been disconnected. Please be on hold while we reconnect. Ladies and gentlemen, the line for the management has reconnected. Sir.
Pawan Agarwal
Sorry, the line got disconnected. Apologies.
Sonal Minhas
Yeah. Sir, I was asking my last question. I was asking from a two, three year out perspective a new category is we working on anything which you can share which are not part of current categories or a completely different category which you’re working on. Just wanted to understand that.
Pawan Agarwal
Thanks for the question but as I said earlier, unfortunately we are not able to share the information release related to new product launches etc. At an early stage. As and when it gets launched, we’ll come to know.
Sonal Minhas
Thank you.
Pawan Agarwal
Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Pawan Agarwal
Thank you. Thanks for your continued interest in Nanjyoti Labs limited And have a pleasant evening. Thank you.
operator
Thank you on behalf of ICICI securities limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.