EMAMILTD · Fast Moving Consumer Goods · filed 5 Nov 2026
Emami Ltd. reported revenue of ₹698 cr for July to September 2026, +15.5% on the year and −10.5% on the quarter.
Operating profit (EBITDA) was ₹195 cr, a margin of 28.0%, +23 bps on the year and +33 bps on the quarter. Operating costs grew +15.1%, broadly with revenue, so operating profit kept pace with sales.
Net profit was ₹136 cr, −25.2% on the year and −25.1% on the quarter, with earnings per share of ₹3.13. Profit before other income, one-offs and tax grew faster, at +25.4%; other income, one-offs or tax held the headline back.
Of the 3 companies in FMCG that have reported Q2 FY27 so far, Emami Ltd. ranks 3rd on revenue growth; the sector median is +30.8%. Its margin moved +23 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.
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)
Depreciation fell while the business grew. Were asset lives changed?
Depreciation ₹34.3 cr, −14.5% on the year.
Source: Results filing
Core profit grew faster than reported profit: one-offs held the headline down.
Reported profit −25.2% on the year; profit before other income, exceptional items and tax +25.4%.
Source: Results filing
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, 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 | ₹171 cr | ₹190 cr | ▼ 9.8% |
| Inventory | ₹394 cr | ₹334 cr | ▲ 17.9% |
| Cash | ₹6.8 cr | ₹134 cr | ▼ 94.9% |
| Bank balances | ₹191 cr | ₹183 cr | ▲ 4.6% |
| Short-term borrowings | ₹28.3 cr | ₹75.0 cr | ▼ 62.3% |
| Trade payables | ₹282 cr | ₹293 cr | ▼ 3.6% |
| Net block | ₹483 cr | ₹505 cr | ▼ 4.4% |
| Capital work in progress | ₹1.8 cr | ₹0.8 cr | ▲ 130.4% |
| Equity | ₹3,316 cr | ₹3,156 cr | ▲ 5.1% |
| Total assets | ₹3,865 cr | ₹3,726 cr | ▲ 3.7% |
Receivables at 21 days of sales (−2 days against the last year end). Inventory at 49 days of sales (+9 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% |
| Q2 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|
| Revenue | ₹604 cr | ₹780 cr | ₹698 cr |
| YoY | — | — | +16% |
| EBITDA margin | 27.7% | 27.6% | 28.0% |
| Other income, % of PBT | 30% | 23% | 13% |
| Exceptional items | — | — | — |
| Tax rate | −1% | 22% | 25% |
| Net profit | ₹182 cr | ₹182 cr | ₹136 cr |
| YoY | — | — | −25% |
| Core profit YoY | — | — | +25% |
| EPS | ₹4.17 | ₹4.17 | ₹3.13 |
| Flags | 1 | · | 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 ₹698 cr (+15.5% on the year) and net profit of ₹136 cr (−25.2% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved +25.4% on the year, against −25.2% 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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