Procter & Gamble Hygiene and Health Care Managing Director Kumar Venkatasubramanian
Procter & Gamble Hygiene and Health Care Ltd (PGHH), the maker of Whisper sanitary pads, Vicks healthcare products and Old Spice grooming products, on Wednesday reported a 34.3 per cent decline in net profit attributable to shareholders for the first quarter of FY27 to ₹126.27 crore, from ₹192.06 crore a year earlier, as weaker sales, rising commodity costs and higher advertising expenditure sharply squeezed margins. Revenue from operations fell 4.9 per cent to ₹891.46 crore from ₹937.03 crore in the year-ago quarter.Analysts said the June quarter reflected a double squeeze, with declining revenue coinciding with sharply higher input costs and renewed investments in brand building. Raw and packing material costs rose nearly 22 per cent, while advertising and sales-promotion expenditure increased more than 21 per cent, resulting in a sharp contraction in operating margins.“The quarter reflected a double squeeze from a softer top line and a significantly higher cost base,” said Mayank Jain, Market Analyst at Share.Market by PhonePe. Sequentially, attributable profit declined 17.5 per cent from ₹153.13 crore in the March quarter, while revenue slipped 5.3 per cent from ₹941.32 crore.Margins under pressureDerived EBITDA declined about 36.1 per cent year-on-year to ₹170.06 crore from ₹266.17 crore, while operating margin contracted by around 930 basis points to 19.08 per cent from 28.41 per cent. The sharp erosion in profitability came despite continued investments in brands and innovation, showcasing the management’s decision to prioritise long-term market positioning even as commodity inflation weighed on costs.Total expenses rose 7.5 per cent to ₹731.26 crore despite lower sales. Raw and packing material costs surged 21.8 per cent to ₹200.24 crore from ₹164.40 crore, while purchases of stock-in-trade rose 5.3 per cent to ₹213.23 crore. Advertising and sales promotion expenses climbed 21.2 per cent to ₹83.32 crore from ₹68.73 crore, as the company stepped up investments behind key brands and product innovation.The year-on-year comparison was also influenced by a favourable base. In the June 2025 quarter, advertising expenditure had fallen by about 55 per cent, helping boost profitability despite largely flat sales. The latest quarter, therefore, partly reverses that benefit.Profit before tax fell 35.9 per cent to ₹169.63 crore from ₹264.70 crore. A 40.3 per cent decline in tax expense to ₹43.36 crore partly cushioned the fall in attributable profit.Brand investmentPGHH attributed the pressure on profitability to commodity-cost volatility arising from geopolitical uncertainties, while reiterating that it would continue investing behind innovation and brand building.“We continue to invest strategically behind our brands, innovation and market capabilities, even as the geopolitical environment remains challenging,” said Managing Director Kumar Venkatasubramanian.The company, which reports its healthcare and hygiene businesses as a single operating segment, did not disclose category-wise sales, volume trends or market-share data, and offered no formal revenue or margin guidance for the remainder of FY27.The earnings disappointed investors, with the stock closing 4.1 per cent lower at ₹8,601.50, after touching a fresh 52-week low of ₹8,481 during the session.Published on July 29, 2026
