EMAMILTD · Fast Moving Consumer Goods · filed 5 Nov 2026
Emami Ltd. reported revenue of ₹1,088 cr for July to September 2026, +36.2% on the year and +4.7% on the quarter. That is faster than this quarter has grown in recent years (−3.7% on average), so the year-on-year number is not just the season. Over the last four quarters revenue comes to ₹4,204 cr, +13.2% on the four before.
Operating profit (EBITDA) was ₹222 cr, a margin of 20.4%, −792 bps on the year and −132 bps on the quarter. Over the last 8 quarters the margin has ranged from 20.1% to 33.3%, averaging 25.3%. Operating costs grew +51.3%, faster than revenue at +36.2%, so operating profit grew less than sales.
Net profit was ₹146 cr, −1.9% on the year and +4.7% on the quarter, with earnings per share of ₹3.30. Profit before other income, one-offs and tax grew faster, at +32.5%; other income, one-offs or tax held the headline back. The tax rate was 25% against an average of 11% over the previous 8 quarters, which weighed on profit this quarter. Profit over the last four quarters totals ₹746 cr, −0.9% on the four before.
Of the 3 companies in FMCG that have reported Q2 FY27 so far, Emami Ltd. ranks 2nd on revenue growth; the sector median is +30.8%. Its margin moved −792 bps on the year against a sector median of −909 bps.
FMCG growth splits into volume and price. When margins rise while revenue grows slowly, the cause is usually easier input costs rather than stronger demand.
On earnings per share of ₹17.05 over the last four quarters, the stock at ₹375.50 trades at 22.0 times trailing earnings.
The auditor did not give a clean conclusion on these results. What is the qualification about?
Qualified conclusion in the limited review report (p. consolidated limited review report p.1-3).
Source: Auditor (p. consolidated limited review report p.1-3)
Operating margin fell sharply on the year. Pricing, input costs, or mix?
EBITDA margin 20.4%, −792 bps on the year (−132 bps on the quarter).
Source: Results filing
Core profit grew faster than reported profit: one-offs held the headline down.
Reported profit −1.9% on the year; profit before other income, exceptional items and tax +32.5%.
Source: Results filing
Could not run on this quarter: Exceptional items that recur, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹426 cr | ₹343 cr | ▲ 24.0% |
| Inventory | ₹533 cr | ₹400 cr | ▲ 33.3% |
| Cash | ₹47.4 cr | ₹177 cr | ▼ 73.2% |
| Bank balances | ₹206 cr | ₹233 cr | ▼ 11.8% |
| Long-term borrowings | ₹73.3 cr | — | — |
| Short-term borrowings | ₹102 cr | ₹122 cr | ▼ 17.0% |
| Trade payables | ₹544 cr | ₹477 cr | ▲ 14.0% |
| Net block | ₹655 cr | ₹529 cr | ▲ 23.8% |
| Capital work in progress | ₹1.8 cr | ₹0.8 cr | ▲ 130.4% |
| Equity | ₹2,925 cr | ₹2,924 cr | ▲ 0.0% |
| Total assets | ₹4,485 cr | ₹3,836 cr | ▲ 16.9% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹267 cr | ₹235 cr |
| Capital expenditure | −₹20.9 cr | −₹20.5 cr |
| Investing cash flow | −₹79.8 cr | −₹89.2 cr |
| Financing cash flow | −₹318 cr | −₹180 cr |
Operating cash flow was 0.94× profit. Receivables at 37 days of sales (+3 days against the last year end). Inventory at 46 days of sales (+7 days).
No emphasis of matter.
₹0.0 cr still unused. “Completed buyback of equity shares from open market route on October 09, 2026 for total consideration of ₹281.24 crore (maximum buyback size ₹282.00 crore).”
Appointed Shri Debendra Banthiya as Company Secretary & Compliance Officer and Nodal Officer w.e.f. November 05, 2026.
Tax: Consolidated tax expense of ₹48.12 crore (current tax ₹41.08 crore, MAT credit utilization ₹11.82 crore, deferred tax credit ₹4.78 crore) on Profit before tax of ₹193.62 crore for Q2 FY27. Effective tax rate normalized following phase-out of fiscal benefits.
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Underlying volume growth | 43% | — | — |
| Price growth | 6% | — | — |
| Gross margin | 65.8% | — | 71% |
| A&P, % of sales | 215.7% | 203.4% | 156.39% |
Worked out from filed numbers. Pricing / Mix Growth: Domestic Reported Value Growth (+49%) minus Domestic Volume Growth (+43%)
Domestic Business reported value growth of +49% driven by volume growth of +43% (+32% like-to-like value growth with +26% volume growth), indicating volume-led expansion.
Strong volume-led growth across Skin Care (+31%), Hair & Scalp Care (+30%), and Strategic Investments (+73%).
Advertisement & Sales Promotion spend increased 38% YoY to ₹215.70 crore in Q2 FY27 (19.8% of revenue vs 19.6% in Q2 FY26). Margin protection was achieved via procurement and operational efficiencies rather than cutting A&P spend.
Sustained brand investments (A&P spend up 38% YoY) supported double-digit top-line momentum while maintaining healthy EBITDA margin of 20.4%.
Read using the FMCG framework (named in the filing read). Primary valuation lens: P/E against volume growth.
Read more closely in this sector: Volume against price in reported growth · Ad spend cut to protect margin.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| 1st Interim Dividend Per Share | 5.00 | FY2026-27 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Personal and Healthcare | ₹1,088 cr | ▲ 36.2% | ₹194 cr | ▲ 28.9% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹996 cr | ₹891 cr | ₹906 cr | ₹891 cr | ₹1,049 cr | ₹963 cr | ₹904 cr | ₹799 cr | ₹1,152 cr | ₹925 cr | ₹1,039 cr | ₹1,088 cr |
| YoY | — | — | +10% | +3% | +5% | +8% | −0% | −10% | +10% | −4% | +15% | +36% |
| EBITDA margin | 31.5% | 23.5% | 23.6% | 27.6% | 31.8% | 22.7% | 23.5% | 28.4% | 33.3% | 20.1% | 21.8% | 20.4% |
| Other income, % of PBT | 4% | 7% | 6% | 10% | 5% | 11% | 12% | 14% | 3% | 14% | 10% | 12% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 6% | 13% | 16% | 4% | 7% | 16% | 12% | 1% | 7% | 13% | 29% | 25% |
| Net profit | ₹261 cr | ₹147 cr | ₹151 cr | ₹211 cr | ₹279 cr | ₹162 cr | ₹164 cr | ₹148 cr | ₹319 cr | ₹143 cr | ₹139 cr | ₹146 cr |
| YoY | — | — | +10% | +17% | +7% | +10% | +9% | −30% | +14% | −12% | −15% | −2% |
| Core profit YoY | — | — | +18% | +7% | +8% | +9% | −2% | −35% | +17% | −18% | +7% | +32% |
| EPS | ₹5.92 | ₹3.41 | ₹3.50 | ₹4.87 | ₹6.39 | ₹3.72 | ₹3.76 | ₹3.40 | ₹7.32 | ₹3.28 | ₹3.15 | ₹3.30 |
| Flags | · | · | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Emami Ltd. reported revenue of ₹1,088 cr (+36.2% on the year) and net profit of ₹146 cr (−1.9% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved +32.5% on the year, against −1.9% for reported profit.
2 checks raised a question: The auditor did not give a clean conclusion on these results. What is the qualification about?
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