According to reports from Business Standard, Jyoti reported mixed financial results for the quarter ended June 2026. The company's consolidated net profit declined 13.12% to ₹5.23 crore in Q1 FY27, compared to ₹6.02 crore in the corresponding quarter of the previous financial year. Despite the profit decline, the company demonstrated revenue growth with sales rising 8.38% to ₹74.90 crore during the quarter. The latest earnings call transcript reveals that revenue grew 17% year-on-year, driven by nearly 10% volume growth and 7% price increases, though this was accompanied by significant margin compression.
As reported in the Q1FY27 earnings call transcript, Jyoti's profitability faced significant pressure with EBITDA margin contracting to 14.4%, significantly below the company's long-term guidance of 22-25%. Management attributed this compression to two primary factors: a sharp spike in key raw material prices, specifically vinyl acetate monomer (VAM) which rose from ₹75-78 per kg to ₹170-180 per kg in late March, and aggressive sales promotions. The company invested approximately ₹4.5 crore in dealer meets during the quarter, conducting 54 events across 54 territories compared to 30 meets last year. Additionally, employee expenses rose 25% to ₹11 crore from ₹9 crore, reflecting an expansion of the sales force from 520 to 562 personnel.
According to the latest earnings call transcript, Jyoti is nearing completion of a brownfield expansion to 3,500 tonnes per month capacity, with management confirming that 80% of work is finished and the facility expected to be operational by next month. This expansion is designed to support revenue generation of ₹600-650 crore from the existing plant. The company maintains a debt-free balance sheet with ₹160 crore in cash and has entered new markets including Jharkhand while expanding its geographical footprint in North India. Management reiterated its target of achieving ₹500 crore in top line revenue by FY29, assuming 15-20% volume growth annually.
Despite margin pressures, Jyoti's operational performance showed improvement with operating profit margin (OPM) improving to 8.85% in Q1 FY27, compared to 6.29% in the corresponding quarter of the previous year. Additionally, PBDT increased 4% to ₹7.17 crore and PBT grew 5% to ₹6.31 crore during the quarter, indicating operational efficiency improvements despite the overall profit decline. The company reported a registered carpenter base of 210,000, up from 170,000 three years ago, while management aims to reduce debtor days to 120 days within the next two quarters from current elevated levels due to new market penetration.
