Company Overview

Procter & Gamble Hygiene and Health Care Limited (BSE: 500459, NSE: PGHH) reported strong financial performance for FY26 ended March 31, 2026, with revenue of ₹4,290 crore (₹429,042 lakhs) and profit after tax of ₹857 crore (₹85,650 lakhs), representing 19% growth compared to the previous nine-month period. The company changed its financial year to April-March, making year-on-year comparisons not directly comparable.

Financial Performance Highlights

  • Revenue Breakdown: Health and hygiene products drove performance, with ointments/creams contributing ₹92,028 lakhs, cough drops ₹37,696 lakhs, tablets ₹9,602 lakhs, and other hygiene products ₹289,716 lakhs
  • Geographical Revenue: India operations contributed 96.8% (₹415,361 lakhs) while international markets accounted for 3.2% (₹13,681 lakhs)
  • Profitability: Profit before tax reached ₹1,167 crore (₹116,663 lakhs) with net profit margin improving to 20% from 19%
  • Key Ratios: Return on equity improved to 115% (from 84%), inventory turnover increased 29% to 19.53, and debtors turnover rose 27% to 15.69

Dividend Declaration

The Board recommended a final dividend of ₹60 per share, bringing the total dividend for FY26 to ₹255 per share including the interim dividend of ₹195 per share (which included a special dividend of ₹25 per share). The final dividend is subject to shareholder approval at the 62nd AGM scheduled for September 8, 2026, with record date set for September 1, 2026.

Business Strategy and Performance

The company executed its Integrated Growth Strategy focused on product superiority, productivity improvements, and industry disruption. Key business highlights include:

  • Feminine Hygiene Business (65% of turnover): Strengthened Whisper Nights portfolio with enhanced comfort features and continued consumer education initiatives
  • Healthcare Business (33% of turnover): Vicks Rubs showed strong growth, launched Vicks Cough Syrup combining ayurvedic wisdom, and upgraded Vicks ZzzQuil Natura Sleep Gummies
  • Old Spice Business: Demonstrated strong growth across 0% Gas Deodorants and After Shave Lotion portfolios

Corporate Social Responsibility

The P&G Shiksha CSR program, focused on improving learning outcomes for children from underserved communities, impacted over 1 crore children since inception in 2005. FY26 spending amounted to ₹17.70 crore (2% of average net profit of last three years).

Related Party Transactions

The company disclosed material related party transactions, including purchase of goods (contract manufacturing) from Procter & Gamble Home Products Private Limited worth ₹661.26 crore (₹69,860 lakhs). Other transactions included royalty payments of ₹18,816 lakhs, business process outsourcing of ₹8,499 lakhs, and dividend remittance of ₹58,006 lakhs to related parties.

Employee Benefits and Compensation

The company maintained comprehensive employee benefit plans including:

  • Defined Contribution Plans: Provident fund expense of ₹1,566 lakhs and superannuation fund expense of ₹76 lakhs
  • Defined Benefit Plans: Gratuity obligation of ₹11,004 lakhs with net liability of ₹10,472 lakhs
  • Share-Based Payments: International Stock Ownership Plan with 6,396.33 shares purchased and Employee Stock Options Plan with 51,598 outstanding options

Financial Position and Risk Management

The company maintained a strong financial position with cash and cash equivalents of ₹55,702 lakhs, minimal debt, and adequate internal financial controls. Key risk management areas included:

  • Foreign Currency Exposure: Sensitivity analysis showed 10% currency movement would impact profit by ₹609 lakhs for USD exposure
  • Contingent Liabilities: Total contingent liabilities of ₹86,116 lakhs, primarily comprising GST matters (₹46,824 lakhs) and income tax matters (₹35,487 lakhs)
  • Micro Enterprises: Principal amount remaining unpaid to MSMEs stood at ₹1,675 lakhs with interest due of ₹105 lakhs

Corporate Governance and Board Changes

Significant management changes included:

  • Ms. Srividya Srinivasan appointed as Whole-time Director and CFO effective July 1, 2026 with proposed remuneration up to ₹5 crores per annum
  • Mr. Gagan Sawhney stepped down as Non-Executive Director effective October 5, 2025
  • Mr. Ghanashyam Hegde re-designated as Non-Executive Director effective July 1, 2026

The company complied with all regulatory requirements and maintained adequate corporate governance practices, with auditors including Kalyaniwalla & Mistry LLP as statutory auditors and Ashwin Solanki & Associates as cost auditors.