Emami Limited reported its Q2FY26 results, highlighting that 88% of its core domestic portfolio benefits from reduced GST rates. Despite temporary trade disruptions due to the GST transition and a challenging summer, the company expanded its Smart & Handsome range and relaunched Kesh King Gold. The Board declared an interim dividend of ₹4 per share. The company’s commitment to affordable consumer products remains strong.
Q2FY26 Financial Performance
Emami Limited faced temporary trade disruptions in Q2FY26 due to the implementation of GST 2.0. This reform impacted offtakes as trade channels and consumers adjusted to lower MRPs. Excessive rains further challenged the summer portfolio, impacting sales of talc and prickly heat products.
Consolidated revenues for the quarter stood at ₹799 crore, a 10% decline year-over-year. However, excluding GST-impacted categories, the portfolio grew by 10%.
GST Reform Impact
The GST 2.0 reform is structurally positive for Emami, with nearly 88% of its core domestic portfolio benefiting from GST rate reductions (from 12% or 18% to 5%). This brings the total of core domestic business at 5% GST rate portfolio coverage to approximately 93%. Emami swiftly passed on these benefits to consumers, reinforcing its commitment to affordability.
Strategic Initiatives
Emami continues to focus on purposeful innovation and premiumisation. The Smart & Handsome brand expanded with 12 new SKUs in categories like sunscreens, shower gels, and face serums. Kesh King was relaunched as Kesh King Gold with refreshed packaging and an upgraded formulation.
Segment Performance
The company’s International Business delivered steady 8% growth. New products such as the Creme 21 Xtra Bright range further enhanced the international skincare portfolio. The company’s gross margins remained stable at 71.0%. EBITDA for the quarter stood at ₹179 crores, while PAT was ₹148 crores, reflecting the temporary impact of lower topline.
Brand Performance
Here’s a quick look at individual brand performances:
- 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%
- Strategic Investments: +16%
Leadership Commentary
Mr. Harsha V Agarwal, Vice Chairman and Managing Director, noted that over 90% of the core domestic portfolio now falls under the lowest GST rate, improving affordability. He anticipates improved market sentiment and a favourable season ahead.
Mr. Mohan Goenka, Vice Chairman and Whole-Time Director, indicated that October showed a clear turnaround, with trade sentiment rebounding and winter loading recovering. Non-GST impacted portfolio delivered 10% growth in Q2, indicating intact consumer demand.
Source: BSE
