P&G Hygiene Q1 profit falls 34 per cent as higher costs weigh on margins

Mumbai: Even household essentials were not immune to rising costs in the first quarter. Procter & Gamble Hygiene and Health Care Limited reported a sharp decline in profit for the quarter ended June 30, 2026, as commodity inflation, softer sales and continued investments in innovation and brands weighed on earnings.

The company reported revenue from operations of Rs 891 crore, down 5 per cent from Rs 937 crore in the corresponding quarter last year. Total income also fell to Rs 901 crore from Rs 945 crore.

Profit after tax declined 34 per cent year on year to Rs 126 crore from Rs 192 crore, while profit before tax dropped to Rs 170 crore from Rs 265 crore.

Basic and diluted earnings per share fell to Rs 38.90 from Rs 59.17 in the year-ago quarter.

Higher input costs continued to squeeze margins during the quarter.

Raw and packing material costs increased to Rs 200.2 crore from Rs 164.4 crore a year earlier, reflecting elevated commodity prices. Total expenses rose to Rs 731.3 crore from Rs 680 crore despite the decline in revenue.

The company spent Rs 83.3 crore on advertising and promotions during the quarter as it continued to support its brands and new product launches. Employee benefit expenses stood at Rs 54.4 crore, while finance costs remained negligible at Rs 0.3 crore.

Other expenses amounted to Rs 203.5 crore, while depreciation and amortisation charges remained broadly stable at Rs 9.6 crore.

The company also reported a post-tax gain of Rs 1.1 crore on the remeasurement of defined benefit plans, taking total comprehensive income for the quarter to Rs 127.3 crore.

Despite the weaker financial performance, the company said it continued to invest behind innovation, advertising and market capabilities to strengthen its long-term competitive position.

Procter & Gamble Hygiene and Health Care Limited managing director Kumar Venkatasubramanian said the company remains committed to investing strategically in its brands even as geopolitical conditions continue to create challenges.

He said the company’s integrated growth strategy, centred on a focused portfolio of daily-use categories, product superiority, productivity, constructive disruption and an agile organisation, would continue to support future growth and value creation.

P&G Hygiene continues to operate as a standalone company with no subsidiaries, associates or joint ventures. It reports a single business segment comprising the manufacturing, trading and marketing of health and hygiene products, including ointments, creams, cough drops, tablets and feminine hygiene products.

The quarterly financial results were reviewed by statutory auditors Kalyaniwalla & Mistry LLP, who issued an unmodified limited review report, stating that no material misstatements were identified.

While commodity inflation and geopolitical uncertainty weighed on the June quarter, the company is betting that sustained investments in innovation, marketing and brand building will help reinforce its market position and support long-term growth once input cost pressures begin to ease.