Gillette India Q3 Results Review: Nirmal Bang Maintains 'Buy' On Healthy Outlook; Raises Target Price

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Nirmal Bang Report

Gillette India Ltd. reported an extremely strong set of numbers in its Q3 FY25 results. Grooming segment (84% of sales) reported its third consecutive quarter of extremely strong growth. Following the 23% growth in the Sept’24 quarter, it reported 11% growth in the Dec’25 quarter, and now 15% growth in the Mar’ 25 quarter.

Gross margins are improving sharply led by decline in costs of key raw materials like steel and crude derivatives, and possibly by rupee stability vs other currencies, given Gillette India’s import content.

Thus, despite the steep increase in ad-spend to sales (from 11.8% in FY23, 13.6% in FY24, and 14.3% in FY25), Ebitda margins are also improving sharply from the early-20s level to the mid-to-late 20s level.

ROEs have also reached over 50% levels in 9M FY25 compared to the early-to-mid 20 levels until FY22.

The worst seems to be over for the oral care business (16% of sales) after four quarters of decline with flattish sales in Q3 FY25.

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