Emami Limited reported a 10% decline in consolidated revenue for Q2 FY26, primarily due to GST rate changes impacting trade channels and heavy rains affecting summer portfolio sales. Despite this, the company saw encouraging growth in non-GST affected categories and strategic investment portfolios. Emami expects a robust and profitable second half, supported by favorable winter season and normalization of trade post-GST reform.
Q2 FY26 Financial Performance
Emami Limited’s consolidated revenues for Q2 FY26 stood at INR799 crores, a decrease of 10% compared to the previous year. This decline was largely driven by a 15% decrease in domestic business due to temporary trade disruptions caused by GST rate reductions and heavy rains affecting the demand for talc and prickly heat powders.
Segment Performance
Excluding the GST rate affected categories, some non-GST impacted portfolio delivered encouraging growth:
- Medico range up by 8%
- Zandu cough syrup up by 43%
- Honey by 36%
- Zandu Care growing by 17%
Strategic investment portfolios also rebounded with a 16% growth year-on-year and 36% sequentially.
Strategic Initiatives and Outlook
Emami continues to focus on purposeful innovation and premiumization. The company relaunched Kesh King as Kesh King Gold, incorporating science-backed formulations to enhance its ayurvedic heritage.
The company anticipates a strong second half, supported by a favorable winter season and normalization of trade post-GST reform. October witnessed healthy rebound in trade sentiments with deferred winter loading being recovered.
International Business
The international business delivered steady 8% growth despite macro and geopolitical headwinds.
Margins and Profitability
Gross margins remained stable at 71%. EBITDA for the quarter stood at INR179 crores, declining by 29% and PAT at INR148 crores declined by 30%, reflecting the temporary impact of lower top line.
Interim Dividend
The Board of Directors declared an interim dividend of 400%, amounting to INR4 per share for FY ’26.
Source: BSE