Emami (531162) Q1 25/26 earnings summary

Executive summary

• Revenue remained broadly flat in Q1 FY26 at ₹904 crore amid challenging demand, with urban discretionary consumption under pressure and rural demand showing early recovery signs.

• Summer-focused categories, especially talcum and prickly heat powders, declined 17% due to an unusually soft and shortened summer and high base, but core domestic business (excluding these) grew 6% in revenue and 3% in volume.

• Pain management grew 17%, BoroPlus antiseptic creams surged 60%, and healthcare range grew 4%.

• Marked golden jubilee with a new brand identity and launched several new products and digital-first innovations across key brands.

• International business delivered 2% growth despite macroeconomic and geopolitical headwinds, with new Southeast Asian markets showing promise.

Financial highlights

• Revenue from operations at ₹904.1 crore, down 0.2% year-over-year; gross margin expanded by 170 basis points to 69.4%.

• EBITDA was ₹214 crore, down 1% year-over-year, with a 20 basis points contraction in margin; EBITDA margin at 23.7%.

• PAT increased 9% to ₹164 crore, with PAT margin at 18.2%.

• Other income more than doubled to ₹21.6 crore.

• Mix shift toward higher-margin pain management products contributed to margin expansion.

Outlook and guidance

• No significant input cost pressures anticipated in the near term; margin outlook remains positive.

• Expectation of gradual macro improvement with stabilizing inflation and ongoing consumption recovery.

• Focus on innovation, distribution expansion, digital acceleration, and cost agility to drive sustainable growth.

• Kesh King and Smart and Handsome relaunches expected to support growth in H2.

• International business expected to ramp up with distribution expansion.