Emami Limited announced strong, broad-based financial results for the quarter and nine months ending December 31, 2025. Consolidated net sales grew by 11% to INR 1,152 crores, supported by a robust 11% growth in the domestic business led by 9% volume growth. Key winter brands performed strongly, and the company declared a second interim dividend of 600% (INR 6 per share) for FY ’26.
Q3 FY26 Earnings Overview
Emami Limited hosted its Q3 FY26 Earnings Conference Call on February 4, 2026, sharing results that were fully aligned with strategic priorities. Management highlighted a sequential improvement following the GST 2.0 disruptions earlier in the quarter, bolstered by a favorable winter season that drove strong offtake across the winter portfolio and healthcare segment.
Consolidated Financial Highlights
- Consolidated net sales grew by double digits at 11%, reaching revenue of INR 1,152 crores.
- Gross margin expanded to 70.6%, an improvement of 30 basis points due to cost discipline and input price stability.
- EBITDA for the quarter stood at INR 384 crores, growing by 13%, with margins expanding by 110 basis points to 33.4%.
- Profit After Tax grew by 15% to INR 319 crores. (Exceptional items included an impact of INR 10.1 crores related to the new labor code.)
Domestic Business Strength
The domestic business was a key driver, delivering 11% growth anchored by a robust 9% volume growth. Major brands showed strong performance:
- BoroPlus grew by 16%.
- Kesh King grew by 10%.
- Pain Management grew by 8%, and the Health Care range grew by 7%.
- Male Grooming range saw a 4% growth.
Strategic subsidiaries, The Man Company and Brillare, delivered a robust growth of 31%. The omnichannel strategy is gaining traction, with quick commerce doubling sales and now contributing 20% to the e-comm business. Organized channels now contribute 32% year-to-date.
International Performance and Tax Outlook
International sales grew by 9%, marked by double-digit growth in 7 Oils in One, BoroPlus, Creme 21, and the pain management range, led by steady growth in SAARC and CIS regions. The company also announced that the Board declared a second interim dividend of 600% (INR 6 per share) for FY ’26.
Management noted that following proposed amendments in the Union Budget, the standalone entity’s applicable income tax rate is expected to reduce to around 25% from 35% starting FY ’27 onwards. For the consolidated entity, the overall tax rate is expected to be below 20%.
Demand Trends and Future Focus
Management confirmed that the blended price decrease for the consumer at a portfolio level, post-GST rate cuts (effective September 23rd), is roughly 8%. While the winter season was harsh, leading to a slight caution in trade restocking in Q3, the company is now focused on loading the summer portfolio. Rural demand, which was a focus area, is anticipated to gain momentum, especially with GST rate reductions to 5% on 88% of the portfolio. Overall, the rural offtake split is approximately 48-52% of total offtake.
Digital brands specifically showed a very robust growth of 31% over the last year, driven by quick commerce and D2C channels. Management remains confident in sustaining profitable growth by focusing on core brands, new age opportunities, and capturing rural momentum.
Source: BSE
