Earnings Review
Emami Limited Q1 net profit down 16% Year on Year; misses Street estimate
This story was originally published at 15:48 IST on 4 August 2026
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--Emami Apr-Jun consol net profit INR 1.37 bln
--Analysts saw Emami Apr-Jun consol net profit at INR 1.65 bln
--Emami Apr-Jun consol revenue INR 10.39 bln
--Analysts saw Emami Apr-Jun consol revenue at INR 10.13 bln
--Emami Apr-Jun consol net profit INR 1.37 bln vs INR 1.64 bln year ago
--Emami Apr-Jun consol revenue INR 10.39 bln vs INR 9.04 bln year ago
--Emami Apr-Jun domestic business revenue up 20% on year; intl down 12%
--Emami Apr-Jun domestic business like-to-like growth at 12%
--Emami Apr-Jun domestic business volume growth at 8%
--Emami Apr-Jun consol EBITDA INR 2.26 bln, up 6% on year
--Emami: International business revenue hit Q1 due to West Asia disruptions
--Emami: Q2 expected to benefit from healthy demand trends across portfolio
--Emami: West Asia conflict affected co's ability to execute orders
--Emami consol Apr-Jun gross margin at 65.8%, down 360 bps on year
By Utthara E.S.
MUMBAI – Emami Ltd. Tuesday reported a fall in its June quarter consolidated net profit despite a sharp rise in its revenue from operations. The fall in the consolidated net profit was due to the growth in total expenses of the company outpacing the growth in revenue from operations.
The company's consolidated net profit for the June quarter fell 16% on year to INR 1.37 billion, missing analysts' expectation of INR 1.65 billion. Sequentially, the net profit was down 4%. The company's net profit was INR 1.64 billion in the year-ago quarter. The company's revenue from operations for the quarter rose 15% on year to INR 10.39 billion, beating the Street's estimate of INR 10.13 billion. Sequentially, the revenue from operations was up 12%. The other income of the company fell more than 14% on year to INR 185 million.
The company's total expenses for the June quarter rose 18% on year to INR 8.13 billion. The cost of material consumed by the company rose 31% on year to INR 2.15 billion and the purchases of stock-in-trade rose nearly 6% on year to INR 1.15 billion. The employee benefit expenses for the June quarter was INR 1.36 billion, up nearly 14% on year. The company spent INR 2.03 billion for advertisement and sales promotion, up 13% on year. The company reported a nearly six-fold on-year decrease in the inventories of finished goods, stock-in-trade and work-in-progess to INR 257 million. The company's depreciation and amortisation expenses fell 4% on year to INR 427 million in the June quarter, while the finance costs rose more than two-fold to INR 56 million.
The company paid INR 557 million as tax in the June quarter, up more than two-fold from the year-ago quarter. Shares of the company rose slightly after the company detailed its earnings for the June quarter. At 1431 IST, the shares of the company traded at INR 394.80 on the National Stock Exchange, nearly 3% down from Monday.
The company's domestic business grew 20%, with like-to-like business growth of 12% for the June quarter. The like-to-like growth denotes the company's growth in the quarter, taking in the performance of Axiom Ayurveda and IncNut Digital. The two companies were acquired by Emami in the starting of the June quarter. The company's international business reported sales of INR 1.22 billion, down 12% on year, affected by the war in West Asia.
"We are particularly encouraged by the growing contribution of our Strategic Investments portfolio, which now accounts for nearly 18% of our domestic business, reinforcing our strategy of building multiple growth engines alongside our trusted core brands", Harsha V. Agarwal, managing director, said.
The earnings before interest, tax, depreciation, and amortisation rose 6% on year in the June quarter to INR 2.26 billion from INR 2.14 billion in the year-ago quarter. The company posted an EBITDA margin of 21.8% for the quarter, down from the 23.7% in the year-ago quarter. Emami's gross margin for the June quarter was 65.8%, down 360 basis points from the year ago quarter.
The sales for hair and scalp products business rose 11% on year to INR 2.71 billion and the sales of skin care products rose 3% on year to INR 2.46 billion in the June quarter. Health care products sold for INR 2.32 billion, up 2% on year, and sales of products from the strategic investments of the company rose 61% on year to INR 1.60 billion.
In the domestic business, sales from hair and scalp scale products contributed 30% to the company's revenue, followed by skin care products with a contribution of 27%. The healthcare products and the strategic investments of the company contributed 26% and 18%, respectively, to the company's revenue.
Share of Emami Ltd. closed at INR 391.80 apiece on the National Stock Exchange, down over 3% from Monday. End
Edited by Akul Nishant Akhoury
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