Procter & Gamble Health Q1 FY26 Profit Rises 294% YoY to ₹66.2 Cr; Shares Jump 7.85% 

Mumbai, August 1, 2025: Procter & Gamble Health Ltd (NSE: PGHL) has announced a significant surge in its standalone net profit for the quarter ended 30th June 2025 (Q1 FY26). The profit rose by an impressive 294% year-on-year (YoY) to ₹66.18 crore, compared to ₹16.78 crore in the corresponding quarter of the previous year. This substantial increase was primarily driven by strong operational growth and the absence of exceptional expenses that had impacted the base quarter.

Following the announcement, the shares of the company jumped significantly by 7.85%, or ₹463.00, and were trading at ₹6,358.50, as of 2:15 PM.

Financial Highlights (₹ in crore)

For Q1 FY26, Procter & Gamble Health reported revenue from operations of ₹338.74 crore, showing growth from ₹310.99 crore in Q4 FY25 and ₹283.88 crore in Q1 FY25. Other income stood at ₹4.03 crore, up from ₹3.11 crore in Q4 FY25 and ₹2.13 crore in Q1 FY25, bringing the total income to ₹342.77 crore.

Total expenses for the quarter were ₹253.96 crore, compared to ₹235.57 crore in Q4 FY25 and ₹242.99 crore in Q1 FY25. Profit before exceptional items reached ₹88.81 crore, an increase from ₹78.53 crore in Q4 FY25 and ₹43.02 crore in Q1 FY25. There were no exceptional items reported in Q1 FY26, in contrast to Q1 FY25, which saw an exceptional item of ₹20.19 crore. Consequently, Profit Before Tax was ₹88.81 crore, significantly higher than ₹78.53 crore in Q4 FY25 and ₹22.83 crore in Q1 FY25.

The net profit for Q1 FY26 surged to ₹66.18 crore, marking a substantial 294.3% YoY growth and an 8.2% quarter-on-quarter (QoQ) growth from ₹61.18 crore in Q4 FY25. Total Comprehensive Income for the quarter was ₹65.53 crore. It is important to note that Q1 FY25 included a ₹20.19 crore exceptional loss related to discontinued operations at the Goa plant, which significantly reduced the base profit for that period.

Operational Performance

Operationally, the company demonstrated solid performance. Revenue from operations increased by 19.3% YoY and 8.9% QoQ, indicating consistent demand within the pharmaceuticals segment. Material costs saw a decline YoY, reducing from ₹67.42 crore to ₹59.54 crore, which provided support for margin improvement.

Conversely, employee expenses increased to ₹56.01 crore from ₹48.63 crore YoY, signifying continued investment in talent. Other expenses rose sharply QoQ to ₹98.40 crore from ₹82.56 crore, primarily driven by enhanced marketing and distribution initiatives.

Segment Overview

The company continues to operate in a single-segment model—pharmaceuticals—as per Ind AS 108, with all revenue generated from this vertical.

Corporate Commentary

Milind Vasant Thatte, Managing Director, stated, “Our Q1 performance marks a robust start to the fiscal year, driven by volume growth, operating discipline, and strong brand performance. We remain committed to delivering value through innovation and strategic portfolio expansion.”

Audit and Regulatory Status

The financial statements for the quarter have undergone review by the statutory auditors, Haribhakti & Co. LLP, who issued an unmodified conclusion in adherence to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Update

Procter & Gamble Health reported no new exceptional items in Q1 FY26. The one-off losses recorded in the previous year stemmed from the sale and impairment of the injection facility at Goa, which has since been streamlined out of operations, contributing to a cleaner financial quarter.

What Does This Mean For The Investors?

• Strong Profit Growth Signals Operational Efficiency
  • Net profit jumped 294% YoY, reflecting improved margins and absence of past exceptional losses.
  • Q1 FY26 profit of ₹66.18 crore vs ₹16.78 crore in Q1 FY25 marks a major turnaround.
• Revenue Growth Reflects Stable Demand
  • Revenue rose 19.3% YoY and 8.9% QoQ, showing steady consumer demand in the pharma space.
  • Continued top-line growth enhances earnings visibility for future quarters.
• Margin Expansion Driven by Cost Controls
  • Drop in material costs from ₹67.42 crore to ₹59.54 crore helped improve profitability.
  • Focus on operational discipline supports long-term sustainability.
• Increased Spending Suggests Growth Focus
  • Rise in employee and marketing expenses shows P&G Health is investing in talent and brand.
  • Indicates a strategy to expand presence and drive long-term growth.
• One-Time Losses Behind, Cleaner Financials Ahead
  • No exceptional items this quarter versus ₹20.19 crore loss in Q1 FY25.
  • Streamlined operations post-Goa plant exit improve financial clarity.
• Positive Market Sentiment Reflected in Share Price
  • Stock surged 7.85% post-results, showing investor confidence.
  • Strong quarterly numbers may continue to support bullish sentiment.

What’s Ahead For Procter & Gamble?

Procter & Gamble Health is positioned for a steady growth trajectory, supported by operational efficiency, margin expansion, and a focused pharmaceutical portfolio. The absence of exceptional losses and robust Q1 results set a solid base for FY26. With continued investment in talent and brand initiatives, the company is likely to strengthen its market position. However, monitoring input cost pressures and regulatory dynamics will remain crucial. Overall, a stable outlook with long-term growth potential appears intact.

About the Company

Procter & Gamble Health Limited, listed on both the BSE and NSE under the symbol PGHL, is a leading entity within India’s healthcare sector. The company’s core focus is on prescription pharmaceutical products across various therapeutic categories. It also boasts a portfolio of well-known brands within the Over-The-Counter (OTC) and lifestyle segments. Procter & Gamble Health Limited operates as a subsidiary of the globally renowned consumer goods conglomerate, Procter & Gamble. The stock’s significant year-on-year earnings growth and improved margins are expected to elicit a positive market reaction, though the sustained momentum of its topline performance will be a crucial factor in the forthcoming quarters.

REF:https://nsearchives.nseindia.com/corporate/PGHL_01082025135527_PGHLUFRAMJ25.pdf

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