Jyothy Labs: Henkel ends Pril and Fa licenses, company begins arbitration

Henkel will not renew Jyothy Labs' licenses for Pril and Fa brands after May 31, 2026. The company stopped manufacturing and selling these brands from June 1, 2026. Pril contributed 7 to 8 percent of revenue, roughly Rs 225 to 240 crore. Fa's contribution was limited. Jyothy Labs has filed for arbitration at the Singapore International Arbitration Center to protect contractual rights on exit terms and consideration. Management expects near-term margin softness in FY27 as a transition year. Exo Dishwash Liquid will be scaled up to fill the gap, with new product launches planned across categories. Inorganic growth options are also being evaluated.