Emami (531162) Q4 24/25 earnings summary

Executive summary

• Core domestic business grew by 11% in Q4 FY25, with 7% volume growth, and international business rebounded with 6% growth in Q4 despite challenges.

• Strategic investments in The Man Company and Brillare are targeted for high double-digit growth in FY26.

• Over 25 new products launched in FY25, with digital-first Zandu Care portfolio growing over 50% year-on-year.

• Audited standalone and consolidated financial results for FY25 were approved, with auditors issuing an unmodified opinion.

• Special dividend of 200% (Rs. 2 per share) declared as the 3rd interim dividend for FY25, celebrating 50 years.

Financial highlights

• Q4 consolidated revenue rose 8% year-over-year to INR 963 crore; gross margin expanded 10 bps to 65.9%.

• FY25 consolidated revenue grew 6.5% to INR 3,809 crore; gross margin up 100 bps to 68.6%.

• Q4 EBITDA grew 4% to INR 219 crore; profit after tax up 14% to INR 194 crore.

• FY25 EBITDA up 8% to INR 1,025 crore; EBITDA margin improved 40 bps to 26.9%.

• Consolidated PAT for FY25 stood at Rs. 80,274 lacs, compared to Rs. 72,414 lacs in FY24.

Outlook and guidance

• Optimism for strong performance in FY26, with positive momentum expected in male grooming, Kskin, and The Man Company.

• Anticipates gradual consumption pickup, aided by easing inflation, tax benefits, higher government CapEx, and potential rate cuts.

• Strategic focus on ramping up growth in subsidiaries, cost optimization, and omnichannel distribution.

• Continued investment in new product launches and digital marketing to drive future growth.

• One manufacturing facility in Assam continues to benefit from income tax incentives under section 80IE until FY26.