Emami Q1FY27 Consolidated Net Falls 15% to Rs 139cr on Higher Expenses, Inflationary Pressure

Kolkata: FMCG major Emami Ltd on Tuesday reported a nearly 15 per cent year-on-year decline in consolidated net profit to Rs 138.94 crore for the first quarter ended June 30, 2026, weighed down by a sharp rise in expenses amid elevated crude prices, inflationary pressures and disruptions caused by the West Asia conflict.

The company had posted a consolidated net profit of Rs 164.26 crore in the year-ago quarter, according to a regulatory filing.

Consolidated revenue from operations rose about 15 per cent to Rs 1,039.21 crore during the quarter under review, compared with Rs 904.09 crore in the corresponding quarter of the previous fiscal.

However, on a standalone basis, the net profit for the quarter rose nearly 12 per cent to Rs 182.22 crore from Rs 163.09 crore.

The company said that domestic business grew 20 per cent during the quarter, while on a like-to-like basis, growth stood at 12 per cent with volume growth of 8 per cent after adjusting for the previous year’s Axiom Ayurveda and IncNut Digital numbers.

Total expenses during the quarter were up nearly 18 per cent at Rs 813.03 crore against Rs 689.87 crore a year earlier, primarily on account of higher cost of materials, purchases of stock-in-trade and advertisement and sales promotion spends.

Gross margin contracted by 360 basis points to 65.8 per cent due to higher crude-linked input costs and inflation across packaging materials and other key inputs. Despite the margin pressure, EBITDA rose 6 per cent to Rs 226 crore, supported by cost optimisation and operational efficiencies, the company said in a statement.

Region-wise, revenue from operations within India grew about 20 per cent to Rs 911.96 crore, while revenue from outside India declined nearly 10 per cent to Rs 127.25 crore.

The international business declined 12 per cent during the quarter, primarily due to disruptions arising from the West Asia conflict that constrained execution of orders, the company said.

Hair and scalp care was the strongest-performing category with 11 per cent growth, while skin care and health care grew 3 per cent and 2 per cent, respectively.

The company’s strategic investments portfolio grew 61 per cent on a like-to-like basis and contributed around 18 per cent of domestic business. Organised channels grew 19 per cent and now account for 32 per cent of domestic business, with quick commerce contributing 35 per cent of e-commerce sales.

During the quarter, Emami acquired a controlling stake in Axiom Ayurveda Pvt Ltd through payment of the first tranche of Rs 100 crore towards a total consideration of up to Rs 200 crore for the remaining 73.5 per cent stake, effective April 1, 2026. It also acquired a 60 per cent controlling stake in IncNut Digital Pvt Ltd for Rs 320.99 crore, effective June 1, 2026, the filing said.

Vice Chairman and Managing Director Harsha V Agarwal said the company delivered strong revenue growth despite geopolitical disruptions, inflationary pressures and an uneven summer season, while the increasing contribution of the strategic investments portfolio reinforces its strategy of building multiple growth engines. He said digital and artificial intelligence are becoming core enablers of the company’s growth strategy.

Vice Chairman and Whole-Time Director Mohan Goenka said disciplined execution, cost optimisation and operational agility helped the company deliver earnings growth despite elevated input costs, adding that easing commodity prices and a strong innovation pipeline should support profitability going forward.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)