Emami Limited reports a temporary 10% YoY revenue decline in Q2 FY26 due to GST reform-related trade disruptions and weather impact on summer products. However, the company anticipates strong growth in the second half of the year, driven by improved consumer sentiment and a favorable upcoming season. Approximately 88% of Emami’s core domestic portfolio now benefits from a reduced 5% GST rate.
Q2 FY26 Performance Overview
Emami Limited faced a challenging Q2 FY26, with consolidated revenues at ₹799 crore, a 10% year-over-year decrease. The company attributes this decline primarily to trade disruptions caused by the implementation of GST reforms and adverse weather conditions impacting summer product sales. Excluding GST-impacted categories, the portfolio grew by 10%.
Impact of GST Reform
The GST 2.0 reform, which reduced GST rates, caused temporary trade disruptions as channels and consumers anticipated lower prices. Nearly 88% of Emami’s core domestic portfolio now benefits from GST rates reduced to 5%. Emami swiftly passed on the benefits of the rate cut to consumers.
Strategic Highlights
Despite the challenges, Emami continues to focus on purposeful innovation and premiumization. Key highlights include:
- The expansion of Smart & Handsome into newer male grooming categories with 12 new launches.
- The relaunch of Kesh King as Kesh King Gold with refreshed packaging and an upgraded formulation.
Dividend Announcement
The Board of Directors declared an interim dividend of 400%, amounting to ₹4 per share for FY26.
Segment Performance
The brand performance during the quarter was mixed:
- Pain Management Range: -4%
- BoroPlus Range: -30%
- Navratna & Dermicool Range: -33%
- Healthcare Range: +1%
- Male Grooming Range: -9%
- Kesh King Range: -23%
- 7 Oils in One: -12%
International Business
The International Business delivered steady 8% growth, driven by portfolio relevance and market-specific innovation.
Leadership Commentary
Mr. Harsha V Agarwal, Vice Chairman and Managing Director of Emami Limited, noted that over 90% of their core domestic portfolio now falls under the lowest GST rate of 5%. He anticipates improving market sentiment and a favorable season ahead.
Source: BSE
