Emami Net Profit Down 30% in Q2FY26

Kolkata, Nov 10 (PTI) FMCG major Emami Ltd on Monday reported a 30 per cent year-on-year (YoY) decline in consolidated net profit to Rs 148 crore for the September 2025 quarter, compared with Rs 211 crore in the corresponding period last year, impacted by lower offtake in its summer portfolio in the domestic market.

The company's revenue from operations fell 10.3 per cent YoY to Rs 798.5 crore from Rs 890.6 crore a year earlier, according to a regulatory filing.

Total expenses for the consolidated business stood at Rs 620 crore in Q2FY26, compared with Rs 640 crore in Q2FY25. Advertisement and sales promotion expenses rose to Rs 156.4 crore (from Rs 145.7 crore a year ago), while employee costs increased to Rs 121.2 crore from Rs 112.9 crore. Profit before tax was Rs 150.2 crore, down from Rs 220.4 crore in the same quarter last year.

On the financial front, gross margins remained stable at 71 per cent, underscoring the company's cost discipline and input price stability. EBITDA for the quarter stood at Rs 179 crore, declining 29 per cent YoY, while PAT stood at Rs 148 crore, down 30 per cent, reflecting the temporary impact of a lower topline.

The company's domestic revenue stood at Rs 618.3 crore, compared with Rs 726.3 crore a year earlier, while international business contributed Rs 180.2 crore, up from Rs 164.3 crore.

The Board of Directors declared a first interim dividend of 400 per cent, amounting to Rs 4 per share for FY26, with the record date fixed as November 14, 2025.

Commenting on the performance, Harsha V Agarwal, Vice-Chairman and Managing Director of Emami Ltd, said, "We are happy that over 90 per cent of our core domestic portfolio now falls under the lowest GST rate of 5 per cent, making our products more affordable and accessible to consumers. The quarter's performance was a temporary impact of trade disruptions linked to the pending GST revision and a weak summer."

"With improving market sentiment and a favourable season ahead, we remain confident of strong growth in the coming quarters. Our bottom line remains stable, with costs well-managed despite global supply chain challenges due to geopolitical issues. To meet our growth aspirations, we will continue to strengthen our portfolio through premiumisation and value-added innovation to stay aligned with the evolving preferences of our consumer," it said.