Gillette India Q2 FY27 Results Analysis: PAT Jumps 10.76%, EBITDA Margin Expands 125 bps
Gillette India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 846.10 Cr (+4.35% YoY) and PAT growth of +10.76% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 846.10 Cr (+4.35% YoY) |
| PAT (Q2) | Rs. 159.10 Cr (+10.76% YoY) |
| EBITDA margin | 26.87% (+125 bps YoY) |
| EPS (Q2) | Rs. 48.83 (+10.77% YoY) |
Quarter Snapshot
Gillette India delivered PAT growth of 10.76% YoY on 4.35% revenue growth, with EBITDA margin up 125 bps YoY to 26.87% despite a 601 bps QoQ rise in the product-cost ratio from crude/resin inflation. Opex discipline below the gross line, 1.81x CFO/PAT cash conversion, and a debt-free balance sheet with Rs.587.80 cr cash underpin earnings quality. The key watch items are the Oral Care margin collapse to 10.46% and Grooming's 1.96% YoY growth trailing the ~12% category benchmark.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "Continued mid-to-high single-digit-plus reported growth" | Revenue +4.35% YoY / +8.06% QoQ | Partially |
| "Margins look compressing or, at best, flat" (crude $82→$102, PVC Rs.78→Rs.94) | EBITDA margin −222 bps QoQ to 26.87% — but +125 bps YoY — QoQ played out; YoY contradicted | Partially |
| Balanced-growth streak "most at risk of bending" | PAT +10.76% outgrew revenue +4.35% | Contradicted |
| Input-cost pressure lands in COGS | Product-cost ratio 43.47% (+601 bps QoQ) — sequentially | Played out |
| Bangladesh impact finally sized | Not disclosed in the filing | Not observable |
| Rural/Guard volumes, new-CFO capital-allocation commentary | No rural split; no dividend-policy commentary (dividend outflow of Rs.195.51 cr appears in cash flow) | Not observable / Partially |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| "Our ambition is to grow ahead of the [~12% Male Grooming] category" | Revenue +4.35% YoY; Grooming +1.96% YoY — below 12%, though the year-ago base carries the undisclosed Bangladesh hit — as-reported; base-caveated | Contradicted |
| Margin-expansion track to continue (FY26 delivered 300 bps) via premiumization + productivity | EBITDA margin 26.87%, +125 bps YoY — expansion continued YoY despite record input pressure | Confirmed on YoY basis |
| Balanced topline/bottom-line growth streak (~8 consecutive quarters) | PAT +10.76% vs revenue +4.35% — profit again outgrew topline; streak extended | Confirmed |
| "We anticipate some challenges to continue" (commodity/supply-chain) | Product-cost ratio +601 bps QoQ to 43.47%; traded purchases +84% YoY | Confirmed |
Key Investment Insights
Key Positives
- Revenue grew 4.35% YoY to Rs.846.10 cr and 8.06% QoQ
- PAT grew 10.76% YoY to Rs.159.10 cr, outpacing revenue growth
- EBITDA margin expanded 125 bps YoY to 26.87% despite input-cost inflation
- Grooming segment result grew 18.51% YoY with margin up 396 bps YoY to 28.34%
- Oral Care revenue grew 15.34% YoY
- H1 CFO of Rs.575.39 cr grew 62.37% YoY at 1.81x PAT
- FCF of Rs.504.64 cr covered the Rs.195.51 cr dividend ~2.6x
- Company is debt-free with cash of Rs.587.80 cr, up Rs.320.98 cr in six months
Risk Factors
- Product-cost ratio rose 601 bps QoQ to 43.47% of revenue on crude/resin inflation
- Purchases of stock-in-trade surged 84.02% YoY to Rs.210.45 cr, doubling traded goods' share of the cost base
- Oral Care segment result fell 31.80% YoY and 53.65% QoQ to Rs.17.48 cr with margin down to 10.46% from 24.43% in Q1
- EBITDA margin compressed 222 bps QoQ to 26.87%
- Grooming revenue grew only 1.96% YoY, below the ~12% Male Grooming category benchmark management cited
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.