Emami (531162) Q2 25/26 earnings summary

Executive summary

• GST rate reduction to 5% on 93% of the core domestic portfolio benefited 88% of products, enhancing affordability and accessibility.

• Q2 FY26 consolidated net sales declined 10% year-over-year, with domestic business down 15% and international business up 8%.

• Strategic innovation and premiumization, including relaunches and new launches in Kesh King and Smart And Handsome, are gaining traction.

• H1 FY26 consolidated net sales fell 5.4% year-over-year, with profit after tax down 13.6%.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, were approved and released.

Financial highlights

• Q2 FY26 consolidated revenue was INR 799 crore (₹798.5 crore/Rs. 79,851 lacs), down 10% year-over-year; domestic business declined 15%.

• Q2 FY26 EBITDA was INR 179 crore (₹178.5 crore/Rs. 19,990 lacs), down 29%, and PAT at INR 148 crore (₹148.3 crore/Rs. 14,835 lacs), down 30%.

• H1 FY26 EBITDA was ₹392.7 crore; PAT was ₹312.6 crore.

• Gross margins remained stable at 71%.

• Interim dividend of 400% (INR 4/₹4/Rs. 4 per share) declared for FY26.

Outlook and guidance

• October saw a healthy rebound in trade, with deferred winter loading recovered, setting a strong base for H2.

• Management expects robust and profitable growth in H2, with high single-digit to double-digit growth anticipated in Q3, contingent on winter trends.

• FY27 is expected to be stronger due to a lower base and GST reform benefits.

• GST rate reduction is expected to enhance affordability and stimulate consumption.

• Management expects no significant impact from unaudited associate results and continues to recognize MAT credit based on projected profits.