Emami (531162) Q4 25/26 earnings summary

Executive summary

• Q4 FY2026 and FY26 saw revenue and profit declines due to weak summer portfolio and international headwinds, but underlying business momentum in non-summer domestic categories and D2C brands remained strong, with growth in The Man Company, Brillare, and 7 Oils in One.

• Portfolio transformation and channel shift towards new-age, D2C brands, and digital campaigns accelerated, with Quick Commerce up 70% and GT Marts up 25%.

• Gross margins expanded to 68.4% in Q4 (up 250 bps YoY), reflecting cost discipline and pricing actions.

• EBITDA for Q4 was INR 187 crores (down 15%), and PAT was INR 143 crores (down 12%).

• Audited results for FY26 were approved with an unmodified auditor's opinion.

Financial highlights

• Q4 consolidated revenue was INR 925 crores, down 4% year-over-year, and FY26 revenue was INR 3,780 crores, down 1% year-over-year.

• Gross margin for FY26 was 69.9%, up 130 bps year-over-year.

• FY26 EBITDA was INR 964 crores (down 6%), and PAT was INR 775 crores (down 4%).

• Receivables reduced by over INR 100 crores, improving working capital cycle by 10 days.

• Dividend payout of ₹436.5 crore, representing 51% of adjusted PAT.

Outlook and guidance

• Entering FY2027 with confidence, expecting sustained growth, especially in summer brands, D2C, and strategic investments.

• International business expects stabilization and double-digit growth from Q2 FY2027.

• Strategic investments portfolio targeted to sustain 30%+ year-over-year growth and improve EBITDA by INR 15 crores.

• Agreements executed to acquire remaining stakes in Axiom Ayurveda and IncNut Digital, subject to closing.