Emami (531162) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue grew 15% year-over-year to INR 1,039 crore (Rs. 1,03,921 lacs), with domestic business up 20% and like-to-like growth at 12% (volume growth 8%).

• Strategic investment portfolio, including Axiom Ayurveda and IncNut Digital, delivered 61% like-to-like growth, now contributing 18% of domestic business.

• International business declined 12% year-over-year due to geopolitical and supply chain challenges, especially in West Asia.

• Major acquisitions included controlling stakes in Axiom Ayurveda (from April 1, 2026) and IncNut Digital (from June 1, 2026), impacting comparability with previous periods.

• Portfolio diversification and transition to category-wise reporting reflect increased scale and resilience.

Financial highlights

• EBITDA increased 6% year-over-year to INR 226 crore (Rs. 24,468 lacs), with EBITDA margin at 21.8%.

• Profit before tax rose 4% to INR 195 crore, with PBT margin at 18.7%.

• Profit after tax declined 15.4% to INR 138.9 crore (Rs. 13,894 lacs), with net profit margin at 13.4%.

• Input costs rose by 360 bps, with 200 bps from West Asia conflict and 160 bps from business mix.

• Other income included INR 32 crore dividend from an international subsidiary.

Outlook and guidance

• Management expects margin pressures to ease and profitability to improve in coming quarters.

• Strategic investments expected to reach INR 750–800 crore revenue for FY 2027.

• International business anticipated to recover and show significant growth in Q3 and Q4.

• Continued focus on innovation, premiumization, and digital engagement to drive future growth.

• Financial results for the quarter are not directly comparable to previous periods due to business combinations.