Emami (531162) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue from operations rose 36.2% to INR 1,087.7 crore; like-for-like consolidated revenue grew 24%, with domestic strength offset by softer international sales.

• Domestic sales grew 49% reported and 32% like-for-like; volume growth was 43% reported and 26% like-for-like.

• H1FY27 revenue increased 24.9% to INR 2,126.9 crore, while profit for the period fell 9.9% to INR 281.7 crore.

Financial highlights

• Q2 EBITDA was INR 222.3 crore, up 24.5%; PBT was INR 193.6 crore, up 28.9%, while profit for the period was INR 144.4 crore, down 2.7%.

• H1 EBITDA rose 14.2% to INR 448.5 crore and PBT grew 15.3% to INR 388.3 crore; profit for the period declined 9.9% to INR 281.7 crore.

• Q2 gross profit increased 26% to INR 716 crore; H1 gross profit rose 17% to INR 1,400 crore.

Outlook and guidance

• Core business growth is expected at 18%-20% for H2 FY27, with momentum continuing.

• FY27 strategic-investments revenue guidance is INR 800-INR 850 crore; management expects strong growth levers but does not expect 70% growth to continue.

• Full-year A&P spend is expected to be no more than 18%-19% of sales; H2 gross margin is expected to improve, with input-cost corrections benefiting next year.

• International supply conditions are expected to improve progressively; mitigation includes alternative shipping routes, container-load optimization, disciplined spending and price increases across most markets.