Core stalls amid inflation; strategic bets accelerate

₹1,039.2 Cr delivered, aligns with 14.9% YoY

₹160 Cr Q1, targeting ₹750–800 Cr FY27. Unverifiable but consistent with acquisition cadence.

Category-wise reporting confirms 11% Hair & Scalp; Navratna specifics not independently verified

Delivered result confirms Skin Care 3%

Domestic 20% (with 14 pp contribution from strategic investments) implies ~6% core; statement in Q&A confirmed

₹138.9 Cr delivered, down 15.4% YoY aligns with 16% claim

Gross margin compression evident (OPM 21.8%, NPM 13.1%), but granular attribution unverifiable

12% decline stated. Recovery is forward guidance, not yet delivered.

Prior: implicit 30% YoY growth target. Now: explicit ₹750–800 Cr FY27 (vs ₹160 Q1). Concrete roadmap with TMC, Brillare, Axiom, IncNut.

Prior: 'double-digit from Q2 FY27'. Now: '−12% Q1, recovery Q3–Q4'. Pushed back by West Asia conflict but still targeting recovery this year.

Prior: implied double-digit through double-digit summer brands. Actual: 6% core ex-strategic investments, Hair 11%, Skin 3%, Healthcare 2%.

Prior: 'margin improvement through cost management'. Actual: OPM 21.8% (compressed); management now saying 'next few quarters relatively better than this' — admits near-term lag.

Sustainable. All 4 subsidiaries growing in volume and value. TMC north of 20%. IncNut new but progressing fast. Expect similar growth rest of year.

360 bps cost inflation: 200 bps from West Asia, 160 from mix. Pressure easing; confident on pricing recovery. Not worried for full year; next quarters should be better.

Yes, absolutely. Will see substantially high numbers this quarter and for whole year. Make up for last year's low.

OTC pain management stuck (regulatory approvals pending). Personal care from UAE, Germany, Thailand recovering fine. Rest of personal care balanced now. Expect full reinstatement when OTC issue sorted.

EBITDA neutral at aggregate. Will take calls on profitability vs growth. 2–3 year target for healthy profitability. High single-digit EBITDA margins by 3-year point.

No big worry for full year. West Asia pressure easing. Taken aggressive price increases. Start-ups on path to profitability. Must balance growth from different segments. Committed that margins don't come down.

Short-term pressure from West Asia. Once settled, will gain in coming quarters with aggressive price increases.

Varies by brand. Overall: ~20% offline, ~25–30% own assets, rest e-com/quick-com/other platforms.

Excluding investments, domestic grew 6%. International decline dragged overall. Hair care 11%, Skin care 3%. Expect better numbers ahead.

4 acquisitions (TMC, Brillare, Axiom, IncNut) growing 20–30% YoY. Mohan stated 'ending up anywhere between INR750–800 crores'.

Currently −12% due to West Asia conflict. Personal care recovering, OTC pain management approvals pending. 'Decline now done', expect 'significant growth' Q3–Q4.

Management: 'expect some better numbers going ahead'. Current 6% core growth to accelerate as pricing actions and commodity deflation take hold.

Input costs up 360 bps (200 from West Asia, 160 from mix). Pricing actions underway; 'more than offset absolute increase in input cost during financial year'.

Rajesh Sharma: 'should be around 25%, 26% because still last year enjoying fiscal benefits, from this year normal 25%'.

Currently EBITDA neutral. Dhruv: 'high single digit probably at 3-year point'. Not near-term profit contributor.

6% core growth ex-strategic investments despite GST tailwinds. Hair 11%, Skin 3%, Healthcare 2%. Question whether core momentum has permanently decelerated or is cyclical.

OPM 21.8%, NPM 13.1%, both compressed. Input costs up 360 bps (200 from conflict, 160 from mix). Pricing actions not yet fully visible. Strategic investments (lower margin) growing faster than core.

International −12% Q1. OTC pain management orders stuck in India (regulatory barriers). Personal care recovering but OTC supply chain unresolved. Recovery promised Q3–Q4 but speculative.

₹160 Cr strategic investments currently EBITDA neutral. FY27 target ₹750–800 Cr. High single-digit EBITDA margins only by 3-year horizon. Consolidated margins diluted near-term despite growth.

Management claims Talc will recover to FY25 levels this year. But seasonal category (summer dependent). FY26 saw sharp decline; full recovery unproven. Q1 only high single-digit growth despite weak prior-year base.