Jyothy Laboratories Limited (NSE: JYOTHYLAB) Q4 2025 Earnings Call dated May. 12, 2025
Corporate Participants:
Unidentified Speaker
M. R. Jyothy — Chairperson & Managing Director
Pawan Agarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Dhiraj Mistry — Analyst
Vishal Gutka — Analyst
Percy Panthaki — Analyst
Senthil Manikandan — Analyst
Sumanyu Saraf — Analyst
Harti Kapoor — Analyst
Disha Giria — Analyst
Bhavdeep Vora — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Jyoti Labs Limited 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 then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dheeraj Mistry from ICICI Securities Ltd. Thank you. And over to you sir.
Dhiraj Mistry — Analyst
Thank you and welcome to the call. I would like to thank the management of Duty Lab to give us an opportunity to host this call from the management we have with us. Ms. Mr. Jyoti Chairperson and MD Mr. Pawan Agarwal, CFO. I would hand over call to the management for their opening remarks. Thank you.
M. R. Jyothy — Chairperson & Managing Director
Good afternoon everyone and a warm welcome to Jyotilabs Limited Q4 25 earnings. The complete financial results and investor presentation are available on our website as well as on the stock exchanges. I hope you have had the opportunity to review them. FY25 has been a challenging year not just for us, but for the broader FMCG industries. After four consecutive years of double digit value growth, we saw a slowdown beginning in Q2 driven largely by external headwinds, rising living costs, sluggish urban income growth and evolving consumer preference towards daily essentials in terms of pack sizes, price sensitivity, promotional offers and convenience of ordering and delivering.
While India’s macroeconomic indicators remain strong relative to global peers, urban households are clearly feeling the pinch. Higher spends on housing, healthcare, education and utilities have impacted discretionary and even essential consumption. Consumers are opting for smaller packs, holding back on bulk purchases and displaying heightened price sensitivity. Rural demand has started to recover, but not yet at a pace that can offset urban softness. That said, our long term outlook remains positive. We believe this is a temporary phase and demand will gradually recover led by volumes. We are confident in our ability to navigate this period with resilience and emerge stronger.
Our strategy remains focused, launching more affordable formats, filling portfolio white spaces, deepening our presence in core regions and managing costs without compromising on quality. Our brands are trusted, our team is agile and our execution is solid. Our priorities are clear, serving our consumers better, staying efficient and creating long term value for our investors. Let me touch upon the performance of various categories in our business. Trafficare grew at 2.1% in Q4 and 5% for the full year, largely led by volume. Liquid detergents were the primary growth driver supported by detergent powders and bar soaps. The main was category for double digit volume growth in FY25 in Kerala.
Ujala IDD detergent powder gained market share rising to 24.5% in FY25 from 23.4% in FY24. Southern India market, our stronghold in the liquid detergent space, grew at 27% year on year with some of our outpacing category growth in this region. Revenues from liquids nearly tripled on both a quarterly and annual basis. The Post Wash segment remains a key focus. UJALA supreme continues its leadership and UJALA Crisp and Shine sustained its momentum with the recent launch of Ujala Fabric Conditioner and encouraging early feedback. We are optimistic about the Post Wash category’s future. Gross margins in fabricare are also improved year on year.
Dishwash grew at 3.1% in Q4 and 3.7% for the year with strong double digit volume growth in in both bars and liquids. Despite healthy volume growth, lower average realization due to promotions largely impacted margins during this year. Personal care faced challenges declining 8.8% in Q4 and 0.9% for the year. Impacted by inflation and a high base, our new Jobya Beauty soap is gaining market access. However, weakness in the Mago franchise weighed on overall performance. This year we have initiated focused efforts to revitalize Mabo Neem Naturals and the Variance through enhanced communication and visibility. While selective price hikes were taken, lower volumes and higher input costs affected gross margins in this category.
With promising consumer feedback and ongoing brand efforts, we expect a better performance in FY26. Household insecticides declined 4.8 in Q4 and 6.5% for the year. However, our liquid vaporizers registered healthy volume led double digit profitable growth. We are working to sustain and accelerate this momentum. Coils, a structurally declining category continued to degrow for us as well. We are taking decisive steps to minimize near term losses in this category and eliminate them in the medium to long term. To enhance our HI portfolio, we recently launched Maxo Aerosol and Maxo Electric Rackets. These additions move us closer to offering a complete product range and also help improve overall portfolio margins.
Early market response have been positive though these products have lower salience compared to coins and LV’s. Now I’ll request our CFO Powerance to take us through the financial performance of the company.
Pawan Agarwal — Chief Financial Officer
Thanks Jyoti and very good afternoon to all of you for the quarter ended 31st March 2025. Consolidated revenue from operations stood at 667 crore, a 1.1% value growth and 4% volume growth year on year. The gap between volume and value growth is due to higher gravities and promotional price offs in select categories. Gross margin for quarter four was 49.2% down 30bps. Yui reflecting continued input cost pressures. We implemented selective price increases in fabricare, personal care and HI segments during the quarter and we’ll calibrate pricing based on future market trends and cost trends. Advertising and sales promotion spends were at 8% in quarter four, slightly lower year on year calibrated in response to macroeconomic conditions.
However, our commitment to long term brand building remains intact as reflected in our annual ENP spends. Operating EBITDA margin for quarter four improved to 16.8% from 16.4% last year aided by prudent cost management despite the input cost headwinds. For the full year FY25 we delivered 3.3% value growth and 6.4% volume growth. Fabric care and dishwasher segments grew in both value and volume while HI and personal care revenue saw declines of 6.5% and respectively. Gross margin improved by 100 bps to 50.1%. ANP spend was 8.4% of revenue versus 8.3% last year. Other expenses rose marginally by 20 bps to 12.7%.
EBITDA grew from 480 crore to 500 crore with a margin improvement of 20 bps to 17.5 PAT rose marginally over 370 crore. The effective tax rate for quarter four was 22.4% without considering the tax related to earlier periods. On a full year basis, the effective tax rate was nearly 23% without considering the tax related to earlier periods, slightly higher than the last year’s 22%. We expect ETR to remain in the range of 23. 24% in the next year as well. Working Capital increased in FY25 due to higher inventory and receivables partly driven by elevated raw material prices, growing share of modern trade and institutional business in total revenue and a strategic move to address evolving market needs.
As a result, our net working capital Cycle stood at 18 days as of March end. We continue to remain debt free with a robust cash balance of exceeding 750 crore. Now let me briefly touch upon the divestment of our stake in overseas subsidiary that is Jyoti Kalol Bangladesh Limited. Our decision to divest our 75% stake in JKPL subject to regulatory approvals was taken after careful consideration. Despite more than a decade of efforts, JKPL has not yielded the desired results and has stretched management bandwidth without proportionate returns. With stronger opportunities within India and in export markets such as Middle east and Southeast Asia, the Board found it prudent to sell or stick to our JV partner, Kaloor Enterprise Limited for a consideration of Rs.
2.1 crore. This transaction has led to a loss of around 4 crore rupees which is shown under the head exceptional Items in quarter four as well as in FY25. So March 25, 2025 onwards, JKBL is no longer the subsidiary of the company. The Board has recommended a final dividend of rupees 3.5 per share for FY25 after reviewing our cash generation, dividend track record and future growth prospects, both organic and inorganic. Last but not the least, I would like to thank you for your continued trust and support. We remain focused on delivering consistent, sustainable, profitable and capital efficient growth and long term value creation.
With this I conclude my opening remarks and we’ll be happy to answer any 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 touchtone 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 will wait for a moment while the question queue assembles. The first question is from the line of Vishal Gutka from Ask Investment Managers. Please go ahead.
Vishal Gutka
Great. Hi Dean, a couple of questions on my side. I just wanted to check on liquid detergent piece. First question a very basic question. What is the contribution of detergent liquids to overall fabric care? Because you’ve tripled the sales. Now if we can just quantify the amount of percentage terms. Second question was what I gathered from my channel suggested that it is very much cheaper to set up the liquidity versus setting up a powder in it or not. What did your insights on the same? And third question is on the Morelight brand. So Morelight historically in the BTL based brand what you see in terms of Godrej Fab where because of mass media advertising they’ve been able to create a synonymous revenue upon this approach.
So do we think there is a need to change our strategy? If yes, given that in terms of quality I believe more or less we are similar only. So any changes? Transportation thank you.
Pawan Agarwal
Thanks Vishal. As Far as your first question is concerned, the detergent liquid all I can tell you is that it is growing very rapidly for us quarter on quarter, year on year for the quarter for the year on all the time zones the growth has been quite impressive but in terms of exact percentage I’m afraid it will be difficult for us to share as far as Morlite and Fab comparison is concerned. Jatin, would you like to stick?
M. R. Jyothy
So right now we have no change in strategy. We will continue with the way it is for us. The liquid detergents under the brand Morelight has been doing pretty well and we will focus in the similar strategy going forward for some more time.
Pawan Agarwal
And what was your another question Vishal?
Vishal Gutka
I just want to check what a gander from exactly it’s much more cheaper the capex required for sending them a liquid detergent plant is cheaper than setting up a detergent powder plant. Is it true or not? Just wanted to throw your thoughts on the thing. I think one of the additional reasons for increased competitive intensity in the liquidity agent space.
Pawan Agarwal
We see from our side we have right now sufficient capacity for detergent liquid powder both as far as investment required for setting up a liquid plant compared to detergent powder. I mean would not be able to comment upon it because we already we don’t have the need and we have not looked into it from that perspective as of now.
Vishal Gutka
But any greenfield plan to put up will it be cheaper or it will be similar only nothing but nothing. There is a material difference in terms. Of cost
Pawan Agarwal
more or less should be similar but as I said, you know we did not face that situation so we have not evaluated in that sense.
Vishal Gutka
And this Last question on HI so I think HI has made approximately 25 crore losses at EBIT level in FY25. I got your strategy that increasing salience of liquid will help to improve the overall profitability. Can we expect breaking 26 or does it be difficult?
Pawan Agarwal
So as we indicated in our opening remarks also our focus, our strategy is to as far as Coil is concerned it’s a declining category and obviously within that we are trying our best whatever best we can do but at least the objective is that we shouldn’t be losing money over there. So we have already taken a number of initiatives inside the company and the early signs are visible, green shoots are visible in coil LV we are supporting and we are aggressively promoting the LV category as well as the market schemes etc. So LV is profitable, it is growing handsomely for us and this growth momentum is likely to continue Going forward.
So at a portfolio level should be better compared to FY25 and the losses as you rightly pointed out already you can see at the segmental margin level, segmental profit level already the nine, nine and a half crore loss reduction is visible this year.
Vishal Gutka
Right, right. Great. Wishing you all the best team. Thank you.
Pawan Agarwal
Thank you Vishal.
operator
Thank you. We will take our next question from the line of Percy Pantaki from IIFL Securities. Please go ahead.
Percy Panthaki
Hi ma’ am, first question is on ad spend. There’s a reduction Y O I this quarter. So what are your thoughts? Because typically, even in periods of extreme inflation, unlike other FMCG companies, we not cut our ad spend. We have suffered in terms of EBITDA margin in the short run but then when the input costs have come down, we have sort of recovered that. So that has been our strategy in the past. But this quarter we see a cut. So is it just I’m reading in too much into a 1/4 number? What’s the way going ahead? And for FY26 ad spend to sales ratio, what are you planning to target?
Pawan Agarwal
So you’re right. I think for quarter four you should not take it as any precedence. I mean this is one of those quarters where we have to recalibrate some of things. But overall, Directionally, you know, 8.5% to 9% is what we continue to invest behind our brands and that trend is likely to continue in the near to medium term.
Percy Panthaki
Got it, got it. Secondly, just wanted to understand this volume value gap of 2 to 3% that we are facing despite the inflationary scenario in soaps. So just wanted to understand what is driving that. I understand that in detergents, yes there has been a price cut by the market leader as well. So there is obviously some response from your end which is likely, but this volume value gap is there now since a couple of quarters, I mean even before the detergent price cuts by the market leader happened. So what is the reason for this and how do we look at this going ahead?
Pawan Agarwal
Thanks for this question. This is a great question. In the last call also you would remember that there was a question around these lines and I had responded that at least in the foreseeable future there is likely to be a gap between volume and value because competitive intensity across segments, whether it is fabric care or dishwash extra grammatism which are being offered, promotional offers, etc. But the gap between volume and value would probably settle down at this point of time. The way we see it probably at between 2, 3%. But again it is a function of how market reacts and accordingly we’ll have to take certain steps.
So this is likely to continue in the near term.
Percy Panthaki
But will this not annualize? I mean when do you see this annual rising and therefore on a yoy basis it would cease to exit exist even if there is no further price cut.
Pawan Agarwal
See, in the near term I think it is likely to be quite intense. The competition is quite intense. But eventually I think couple of percentage point difference between volume and value is likely to to be there.
Percy Panthaki
Okay, so I’m just trying to understand where your profit growth will come from. Because if basically I have negative pricing which is sort of putting pressure on the top line, very unlikely that you will sort of do a high single digit kind of value growth this year which was the expectation earlier. And if you’re falling short on the top line, do you think we can sort of see a margin expansion so that at least the EBITDA or EPS growth is in double digit or you think that’s probably little too much to ask for this year?
Pawan Agarwal
Again the first half of the year I think is as of now it’s looking a bit difficult. But second half, we expect it to be better than first half. Second point is that the price increases that we had to take the entire set of actions are not complete. We have taken some price increase across categories but you know, the full impact is yet to be seen. So that is going to be there first half. Obviously there would be, you know, pressure on the top line growth as well as, you know, a little bit of stress perhaps in the margin side, EBITDA margin.
But second half we expect the top line as well as bottom line to be better.
Percy Panthaki
So what will change in the second half?
Pawan Agarwal
See demand situation we are expecting to improve b some of the price increases that we are going to take that will start showing result because you know, it takes two months to two and a half months to you know, get into the, into the pnl. So these things are going to help us in terms of top line.
Percy Panthaki
Right sir, last question from me is that see two, three years ago we had taken significant company specific initiatives. So we had taken XO at five rupees. We had done a big distribution expansion, we had improved the quality of the distribution. We had decided to play all four brands in the detergent space. We had launched variants of Margo. So there was a plethora of all these initiatives taken which gave us good growth. Now those initiatives are a couple of years old and the benefits from them have started to taper. So what are the new initiatives from your side which will drive the growth in the future.
Pawan Agarwal
See, you are right, a number of initiatives were taken and including the distribution expansion which is also continuing. But obviously the pace definitely would have to be moderated depending on the distribution expansion we have already done over the past three, four years. But while you know, we were reaping or we are reaping the benefits of steps that we had taken in the past simultaneously last two years we have been working on NPD’s also. Now you will see the launch of NPD’s you have already seen in quarter four and in this financial year you will see more of NPD launches across categories that builds the pipeline for, you know, future growth.
Of course all of us know that, you know, whatever NPD’s you launch, everything doesn’t click. But you know that fact has been well built into our plan. And accordingly, you know, for the rest of the year the NPD’s are planned which will set the base for future years growth. Of course organic growth will continue.
Percy Panthaki
Got it, Got it. That’s all for me. Thanks and all the best.
Pawan Agarwal
Thank you.
operator
Thank you. Participants who wish to ask Questions may press star 1. The next question is from the line of Harith Kapoor from Investec. Please go ahead.
Harti Kapoor
Yeah, good evening. So on. Hi. You know you mentioned that coil is the focus area because profitability issues there. But you know there is also the segment where conversion is happening into intrinsic which at least market leader is trying to improve the profitability of that segment. So I just wanted to understand while since it is not in your deck, I mean you have a product but not in your deck recently, you know, what is your thought process on that at least in the near to medium term. Can that be a bridge for you to stem kind of volume declines in. Hi, I know focus is on LV but just a thought because that’s a tragic space that seems to be also growing at a fairly good clip.
So just wanted your thoughts on that.
Pawan Agarwal
Thanks. Are as I already indicated to you the HI strategy where we are headed. Certainly we are cognizant of the incentive stick market and the growth opportunities which exist over there. And the necessary work is happening at an appropriate time. You know the district will get to know what exactly we are going to do. The racket and aerosol we have already launched. So that helps us manage the segmental, you know, margin, the portfolio margin. It helps US&LV As I said, you know we are growing profitably. So a combination of all these three factors plus you know, loss minimization in coil will certainly help us deliver a very different performance of hi segment in the coming quarters.
Harti Kapoor
And second thing, you know, on the working capital bit. So your presentation suggests that the numbers of days have gone up from 5 to 18. As you mentioned, part of it is due to inventory, RM inventory. Part of it is it is generally maybe a little structural. So do we expect this number to kind of settle somewhere in between the FY24 and FY25 number? Because part of it would be, I’m assuming part of it is structural.
operator
If it’s a channel mix, 15 to 20 days historically. Also, if you see, except at March 24, which was an aberration, 15 to 20 days working capital is the norm, you know, that we can expect going forward. You know. Got it.
Dhiraj Mistry
And third thing was on soaps, you know. So you’ve seen a situation over the last suppers, over the last three quarters we’ve seen a declining value growth trend. Just wanted to know your view on do you see the market, you know, normalizing with price increases and changes in pack sizes etc. Is that also you believe a second half thing or that can be sooner, say maybe quarter two or something like that?
Pawan Agarwal
No, I think personal care, we are not quite happy with our performance. Let me admit that you are right. Last year, last year we had a supernatural year in terms of even if you look at all the four quarters, it was exceptionally high growth that we delivered while the industry wasn’t delivering that kind of growth in personal care. And also we had the effect of new Neem Natural which was getting rolled out throughout the year. Now this year of course, last 3/4, your observation is right. Neem natural, initial placement, etc. Helped higher growth numbers in the previous year.
Original Neem was also doing very well. Double digit growth in the previous year. But we have seen kind of slowdown this year, especially in the last 2, 3/4 price increases. Obviously we haven’t taken to the extent we should have taken, but those actions will be taken going forward. And we are also paying special attention in terms of our marketing strategy on the Margot franchise completely. So I think the April, May, June, July period should show some good signals in this category.
Harti Kapoor
Thank you.
Pawan Agarwal
Thank you.
operator
Thank you. The next question is from the line of Disha Giria from Ashika Institutional Equity. Please go ahead.
Disha Giria
Hi, thank you for giving.
operator
Sorry to interrupt, ma’ am. Can you be a little louder? Yes.
Disha Giria
Yeah. Hi. So my question Is regarding the 757 crore cash balance that we have. So are we considering any inorganic growth opportunities or any shareholder wealth maximization opportunities.
Pawan Agarwal
So Disha, the cash balance that we’re carrying on the balance sheet, the board is cognizant of it. We have a great growth opportunity in front of us both organically and inorganically. So the board feels that we should be holding on to cash at this moment. And at an appropriate time, suitable actions will be taken which will help us utilize this cash.
Disha Giria
Okay. Yeah, that’s it from my end.
Pawan Agarwal
Thank you.
operator
Thank you. We will take our next question from the line of tencent Manikandan from I thought pms. Please go ahead.
Senthil Manikandan
Hi, thanks for the opportunity. A couple of questions from the liquid digit side. So we are seeing a lot of chassis based liquidity coming into the market. So any insights on this? Do you see over the next three, five years liquid detergent forming the majority of the market? And if that happens, any structural level changes can we expect from the market share perspective? So that’s it. Yeah.
Pawan Agarwal
From the liquid detergent, you see the dominance is there in the southern India and, and especially in Tamil Nadu, which is the biggest market in southern India, followed with other four states, Kerala, Andhra Pradesh, Tamil Nadu, Karnataka. Now the shift is happening especially in Kerala. We have noticed that there is a shift from powder to detergent liquid which is happening at a very good pace and also to, you know, induce consumers to move from powder to liquid. There’s a lot of trials which are happening actually. So that is why you see a lot of these sachets in the market.
So as of now, the detergent, liquid detergents are growing. I think it’s growing reasonably well for us and it’s too early to comment on which way this is going to settle down. But in the near term, I think the growth is likely to continue in detergent liquid.
Senthil Manikandan
So just to follow up in terms of our market position and the market standing, so when there is a shift from powder to liquid, how are we portioning our brands and can we expect a much better kind of share going forward?
Pawan Agarwal
See, as we mentioned in our opening remarks, also our Mujala detergent powder, we have gained market share in Kerala and that continues to be a strong goal for us. And other detergent powders are also doing well across different regions in the country. Liquid detergent, as I mentioned, south is the dominant market and we are well placed across five states and we are doing very good in Kerala and some of the other states. And this growth momentum will continue in the near term.
Senthil Manikandan
Okay, thank you,
Pawan Agarwal
thank you,
operator
thank you. The next question is from the line of Somanyu Saraf from JM Financial. Please go ahead.
Sumanyu Saraf
Yeah, hi. Some of my questions have been answered. My first question is on gross margins. So your gross margins have been pretty good. Which, which, which has been declining recently. So is the benefit of forward cover which you had in some of the raw materials over and how do you see gross margins going ahead?
Pawan Agarwal
As I mentioned, I cannot delve too much deep into category level margins, etc. But as I hinted at, you know, some of the strategic moves that we make keeping the market realities in mind. So whether it is in terms of sourcing raw material, whether holding finished goods inventory. Producing and holding finished goods inventory, all these things and long term, you know, a relatively higher coverage. You know, we, we use all these levers in anticipate and use these levers to, to handle our gross margin.
Sumanyu Saraf
Okay. Okay. So like do you see it compressing or. I mean okay, so basically it’s an ongoing thing. So I mean some benefit should flow through in the coming quarters range bound.
Pawan Agarwal
I would at a high level, I would say the gross margin would remain range bound. We do not expect it to, to be materially different from, you know, what we are seeing right now.
Sumanyu Saraf
Okay. And in quarter we saw you reducing your ad spend and other expenses. So I mean any changing guidance of your EBITDA margin, it remains at around 16 to 17%. What is the margins? Yeah,
Pawan Agarwal
sorry, sorry. Please, please go ahead.
Sumanyu Saraf
No, so basically what, what are the sustainable margin levels? Because as you said this quarter I think your expenses were significantly reduced as percentage to sales. So going forward I think that won’t be the case. We had also weighted that. So your guidance on operating margin pretty much the same 16 to 17%.
Pawan Agarwal
See for the next year as I indicated. As of now we believe H2 we, we should be able to deliver ebitda margin between 16 and 17% H1. Still it is stressful the early signals that we are getting from the market. The demand side is not very encouraging, at least in the month of April. So there could be a couple of quarters margin pressure here and there. It’s not going to be significantly high, but there could be marginal pressure. But net net directionally if you ask me, I think 16 and 17 is the direction in, in which we are striving the driving the business.
Sumanyu Saraf
Understood. What, what tax rate is expected for FY2627? Will it be 23%?
Pawan Agarwal
Sorry, could you repeat the question please?
Sumanyu Saraf
Yeah. What is the expected tax rate for FY 26 27?
Pawan Agarwal
Just same as I indicated, 23 and 24%. Between 23 and 24%.
Sumanyu Saraf
Okay, so just one last question. So I mean as your current contribution of LBPS to overall sales is increasing, I mean are they putting a pressure on, on your operating margins?
Pawan Agarwal
Can you repeat your, your audio unfortunately is not very clear. Can you repeat the question please?
Sumanyu Saraf
Yeah, yeah. As the contribution of LUPS to overall sales is increasing, is this putting pressure on your operating margin?
Pawan Agarwal
LUP again is. There’s no standard percentage which applies across categories. It varies, you know, from category to category, segment to segment. The LUP portion could be as low as 5 to 10% and as high as 25 to 30%. So it varies across categories and you know, we are, we are handling it, you know, understanding the nature of the category and the type of the percentage of LUP contribution in that category sale. So net net, we don’t see major impact on the margin of the company. But of course some of the categories like dishwash, which is quite sensitive to some extent, personal care also where the LUP plays a dominant role.
So an extra grammatics etc particularly influences the cavity margin. So we are aware of that and we calibrate our approach accordingly.
Sumanyu Saraf
Thank you and best of luck.
Pawan Agarwal
Thank you so much.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star one to ask a question. The next question is from the line of Vishal Gudka from Ask Investment Manager. Please go ahead.
Vishal Gutka
Yeah, yeah, I think great. Just want to check on the indirect reach. I think it has gone up by 8 lakh outlets during the year. So it seems that wholesale acceptance of a product has gone up substantially. Just wanted to check from you what additional steps are we taking to further improve the sales of wholesale, given that increasing direct reach is a very cost, high cost exercise. And second question is on the new brand that you launch. Young and Fresh. Kecs are suggesting that they’re seeing a very, very good response from the trade. So I believe there’s a good chance it could be scaled up in a very meaningful manner.
So I think any, anything that would like to highlight about this brand, Young and Fresh, I think in the fabric conditioner space for ta launch. Thank you.
M. R. Jyothy
Yeah, Vishal. So yes, we are happy that you know, our overall reach, both indirect and indirect have gone up. It is also to do with, you know, a lot of brand acceptance that’s happening across dishwash and your other portfolios. So while direct reach also we have increased by a lakh this year. So all of this and you know, certain other activities which we continue to do that has helped us in increasing it and going forward now you should be able to see much more indirect reach that going to happen. So we are overall happy with the way things have turned out at least in the distribution space from a future point of view.
Young and fresh. Yes, it’s the initial launch and yes the feedback has been good. Now again this category sells more in the south comparatively like your liquid detergents. So right now it’s at a very small pace. But we will soon catch up pace going forward. Right now it’s testing and the initial feedback both from retailers consumers have been encouraging. But you know we’ll have to see for a year to exactly say where the brand is. But have high hopes on that.
Vishal Gutka
Got it, Got it. Thanks. And madam, any guidance you would like to go on? Volume trend I can understand revenue and profit difficult for you. So volume trend, what are we guiding for FY26? Are we targeting high single volume growth for FY26?
Pawan Agarwal
See volume growth again in the first half of the year I think it will be. It will be mid single digit. I mean but the next half of the year we are optimistic about, you know, hitting double digit at least towards the end of the year.
Vishal Gutka
Okay. Okay, great. Thank you.
operator
Thank you. The next follow up question is from the line of Parsi Ban Thaki from IIFBA Securities. Please go ahead.
Percy Panthaki
Hi sir, you mentioned that you have started recently some price increases in some of the categories. So just was confused because typically when the commodity cost goes down and most of your cost would be linked to crude which is actually coming down. So at that time typically in the industry there are no price increase increases which happen. So can you give an idea in which categories the price increases are happening and what is the reason behind the same given that the input costs are trending downwards.
Pawan Agarwal
I don’t know from where you are getting the sense that input prices are coming down. At least for from. From our perspective the key inputs, whether it is lapsa, whether it is soap noodles or slds, you know, these important raw materials, they are all showing an upward trend. Whether it is quarter three to quarter four, quarter four versus last year quarter four. And even in the current period, current quarter we see a upward trend. In fact soap noodle prices year on year basis, 30, 40% up. SLDS is 40% up. Still 12, 15% increase we are seeing in SLES.
So there is a. There is an input pressure, input pricing pressure at at least from our perspective and in personal care, as I mentioned, we did not take full price increase for the Period in quarter four and also in Fabricare and in. Hi, you know, in coil we have taken some price increase. We are going to take some more depending upon the requirement because coconut shell powder again is going up. So we are seeing a increase in input prices. So that is the, that is the background for our price increases.
Percy Panthaki
Understood, Understood. So soap prices are going up. That is well known on the back of palm inflation. But that’s a relatively small part of your portfolio. The larger part, which is detergents, where basically it’s mainly crude derivatives and dishwash also. Do you see an inflation there as well? And secondly, the price increases which you are talking about, those price increases are mainly in soaps or have you taken in other. Apart from soaps and coils, is there anything else also where you have seen a price increase?
M. R. Jyothy
So parsee, it is like you said, your soaps. Yes, it is to an extent. It is there and it may later maybe, you know, come down a bit. But your lapsa and your sle is on the rise and it will continue, I think till Q3, Q4, till at least Q3, I guess. So it’s on an upward trend. It’s nowhere coming down.
Pawan Agarwal
Noodle prices may probably come down at the end of quarter one or early quarter two, but others are, we are not seeing any signal of, you know, coming down of prices in other commodities.
Percy Panthaki
Got it, Got it. But then it’s very surprising that in a situation where input prices are on the higher side, basically your implied pricing at overall portfolio level is negative. So how do I reconcile these two things?
Pawan Agarwal
Come again?
Percy Panthaki
So I’m saying in a situation where your overall input prices are seeing an inflation, your overall product prices, as evidenced by the volume value gap are seeing a deflation. So how do I reconcile these two things?
Pawan Agarwal
See, average realization in dishwash has come down because of the higher grammages. A little bit of impact is also visible in fabric here and these two factors. And also now, you know, in personal care also we have seen some impact over there now with the price increases. We are going to correct some of these, you know, gaps. Okay, so competition again, you know, the kind of competitive moves which are, which are happening in the market and we are, we are observing them, watching it and then we are reacting to it.
Percy Panthaki
Got it? Got it. Okay, thank you very much.
Pawan Agarwal
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ask a question, you may press star and 1. The next question is from the line of Bhavdeep Vora from Franklin Templeton Asset Management. Please go ahead.
Bhavdeep Vora
Yeah, thank you. For the opportunity. My question is regarding the liquid detergent. Could you share some data like, so how big is this category? Maybe if not at pan India level, at least in South India or maybe the states of Tamil Nadu. So what would be the kind of the breakdown between say powder and liquid bar today? If some idea around that would be helpful.
Pawan Agarwal
See, I mean these are our estimates. We believe that the washing powder liquid detergent put together would be about 34, 35,000 crore category growing at about 6, 7% put together within that liquid detergent would be roughly 3,000, 3,200 kind of, you know, category size, which is growing at about 20, 25% year on year. That’s our assessment.
Bhavdeep Vora
Okay, fair enough. Thanks for that. Just a follow up on that point. So, you know, kind of you mentioned that we have seen a fairly strong growth in the liquid detergent. I don’t know whether you quantified the numbers. Maybe I think 25% for South India or something. But the full year numbers. So, you know, this year the EBIT margin for the home care, the fabric care has basically declined. So is it that this category is a bit margin dilutive at the moment or is it just a function of the overall competitive pressure in the industry? Maybe your comments around that would be helpful.
Pawan Agarwal
Sure, that’s a very important observation. The overall Fabricare margin in segmental, you see a slight decline from 24.2% to 23.6% this year. But within Fabricare we have Mainwash, within Mainwash we have Detective Detergent Powder, we have Detergent Liquid, we have Detergent Bath. And then obviously in Post Wash we have Ujala Supreme, Ujala Crystal Shine and all of that. So mix plays a very important role because in terms of margin hierarchy, each of these subcategories carry a different margin profile. And also the EBIT margin that you see is also is a function of our A and P spend.
So we should not be reading too much in terms of, you know, the, the slight decline that you see in FY25. But you know, on a sustainable basis, I think Fabricare margins are sustainable between 23, 24%. Sure.
Bhavdeep Vora
So is it fair to assume that the liquid detergent is not margin dilutive or.
Pawan Agarwal
No, as of now it is, it is very much. It is margin dilutive, but again, it’s a growing segment, but a small portion of the total portfolio and everybody in the industry
operator
no longer being recorded.
Pawan Agarwal
Sorry,
Bhavdeep Vora
sorry. So there was some disturbance. I don’t.
Pawan Agarwal
No problem. So. Yes, hello?
Bhavdeep Vora
Yeah, it’s the automated sound that it’s being. That the conference is being recorded. Yeah.
operator
Yeah.
Pawan Agarwal
Liquid detergent certainly is not the best of margins that we would love to have, but I think these are early times. Everybody, including us, everybody is trying to grow the market, but eventually the liquid detergent margin would converge to detergent powder margin in mix.
Bhavdeep Vora
Okay. Okay. Thanks. That’s it from me. Thank you.
Pawan Agarwal
Thank you.
operator
Thank you. Ladies and gentlemen. We will take this as our last question. I would now like to hand the conference over to the management for closing comments.
Pawan Agarwal
Hello.
operator
Yes.
Pawan Agarwal
Thank you for your interest in Jyoti Labs. If there are any questions that we couldn’t address today, or if you need any further clarity, please feel free to reach out to me. Thank you so much. Wishing you all a pleasant evening. Thank you.
operator
Thank you. On behalf of Jyoti Labs Limited and ICICI Securities Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.