Shares of Jyothy Labs experienced a significant decline of 11.2% on Monday after Henkel, the German consumer goods giant, announced it would not renew its licensing agreements for the PRIL and Fa brands beyond May 2026. This decision marks the end of a nearly 15-year partnership and raises concerns among investors regarding the potential impact on Jyothy Labs' revenues and growth outlook. Analysts estimate that PRIL contributes around 25-30% of Jyothy's dishwashing portfolio, translating to roughly 9% of the company's overall revenues. The brokerage Equirus Securities has warned of a possible 6-8% reduction in revenue assumptions for FY27, alongside a potential 14-16% drop in earnings before interest, taxes, depreciation, and amortization (EBITDA). The management of Jyothy Labs is already working on transition plans, focusing on scaling its Exo liquid dishwash products to offset the impact of PRIL's exit. Analysts believe that while Exo has been part of the portfolio, its scale is currently limited compared to PRIL. The management has indicated that Exo will now receive increased strategic focus and investments to strengthen its market position. However, replacing PRIL's scale and profitability may take time, and the company faces heightened competition and inflationary pressures in the market.