Emami (531162) Q3 24/25 earnings summary

Executive summary

• Core domestic business grew 8.6% in Q3 FY25 with 6% volume growth, while consolidated revenues rose 5% year-over-year in Q3FY25 and 9% for 9MFY25; domestic core net sales up 9% in Q3.

• Profit after tax increased 8% in Q3FY25 and 12% in 9MFY25, with margin expansion across gross, EBITDA, and PAT levels.

• Urban demand remained subdued due to food inflation and liquidity issues, while rural demand was resilient, aided by favorable monsoons and harvest.

• BoroPlus and healthcare segments led growth, while male grooming and Kesh King declined; rebranding of Fair and Handsome to Smart and Handsome aims to broaden the male grooming portfolio.

• Board approved unaudited financials and declared a 2nd interim dividend of Rs 4 per share (400%) for FY25.

Financial highlights

• Q3FY25 consolidated revenue: Rs 1,04,948 lacs (₹1,049 crore), up 5% YoY; PAT: Rs 27,898 lacs (₹279 crore), up 8% YoY; EBITDA: Rs 35,362 lacs (₹339 crore), up 8% YoY.

• 9MFY25 consolidated revenue: Rs 2,84,614 lacs (₹2,846 crore), PAT: Rs 64,057 lacs (₹641 crore), EBITDA: Rs 80,600 lacs (₹806 crore).

• Gross margin expanded by 150 bps to 70.3% in Q3; EBITDA margin up 70 bps to 32.3%; PAT margin 26.6%.

• EPS for Q3 FY25: Rs 6.39 (basic and diluted), compared to Rs 5.92 in Q3 FY24.

• Interim dividends totaling 800% (INR 8 per share) declared for FY24/9MFY25.

Outlook and guidance

• Management expects continued double-digit growth in BoroPlus and healthcare in Q4 and robust FY25 results, with positive macro indicators and demand revival.

• Plans to focus on new product development in male grooming, expand digital and ATL/BTL campaigns, and invest in branding for sustainable growth.

• Assam facility continues to benefit from income tax incentives until FY 2025-26.