Emami (531162) Q3 25/26 earnings summary

Executive summary

• Achieved strong, broad-based performance in Q3 FY26, with consolidated net sales up 11% year-over-year and sequential improvement after Q2 disruptions; favorable winter season boosted winter and healthcare portfolios.

• Profit before tax before exceptionals rose 16% year-over-year, and reported PAT increased 15% for the quarter.

• All major brands performed well, with BoroPlus up 16%, Kesh King up 10%, Pain Management up 8%, Healthcare up 7%, and digital brands (The Man Company, Brillare) up 31%.

• Quick commerce sales doubled, now 20% of e-commerce; organized channels contributed 32% YTD, up 280 bps.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and released, with statutory auditor review completed.

Financial highlights

• Consolidated net sales for Q3 FY26 reached INR 1,152 crore, up from INR 1,035.9 crore in Q3 FY25; EBITDA grew 13% to INR 384 crore (33.4% margin), and PAT rose 15% to INR 319 crore.

• Gross margin expanded to 70.6%, up 30 bps year-over-year; cost of goods sold as a percentage of revenues decreased by 30 bps.

• Exceptional item: INR 10.1 crore (Rs. 1,015 lacs) accounted for new labor code impact.

• Second interim dividend of INR 6/share (600%) declared, totaling INR 261.9 crore; total dividend for nine months at INR 10/share.

• Basic and diluted EPS (consolidated) for Q3 FY26 was Rs. 7.32, up from Rs. 6.39 in Q3 FY25.

Outlook and guidance

• Optimistic for Q4 and beyond, expecting better consumption momentum and sustained, profitable growth.

• Focus remains on core brands, innovation, new age opportunities, and rural market revival.

• Double-digit growth targeted for most brands, with rural and small SKUs as key drivers.

• Enhanced digital and consumer connect initiatives to drive brand engagement.

• Management continues to monitor the impact of new labor codes and will adjust accounting as further government clarifications are issued.