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    Emami Q1 FY27 earnings call

    EMAMILTD
    Fast Moving Consumer Goods·4 Aug 2026
    Management Summary

    Emami reported a strong Q1 FY27 with consolidated revenue up 15% to ₹1,039 crores, driven by robust domestic growth of 20% and exceptional 61% growth in its strategic investment portfolio. However, international business declined by 12% due to geopolitical issues, and PAT was down 16% due to tax rate normalization. The company faced input cost inflation but remains confident in margin recovery through pricing actions and operational efficiencies.

    Highlights

    5

    • Consolidated revenue grew by 15% to ₹1,039 crores.

    • Domestic business grew by 20% (12% like-to-like) with 8% volume growth.

    • Strategic investment portfolio grew by an impressive 61% like-to-like, now contributing 18% of domestic business.

    • Hair and Scalp care emerged as a strong performing category, delivering 11% growth.

    • Organized channels grew by 19% on a like-to-like basis, now contributing 32% of domestic business.

    Concerns

    4

    • International business declined by 12% due to disruptions in the West Asia conflict.

    • Profit after tax was lower by 16% to ₹137 crores due to normalization of the effective tax rate.

    • Gross margin moderated compared to last year due to inflationary pressures and changing business mix.

    • Skin Care grew by only 3% and Healthcare by 2% during the quarter.

    Key financials

    Single quarter

    10 metrics
    1. 01Consolidated Revenue₹1,039 Cr+15%YoY
    2. 02Domestic Business Growth—+20%YoY
    3. 03Domestic Business (like-to-like) Growth—+12%YoY
    4. 04Domestic Business Volume Growth—+8%YoY
    5. 05Strategic Investment Portfolio Growth (like-to-like)—+61%YoY

    Segment breakdown

    Hair and Scalp care
    11% Growth
    Skin Care
    3% Growth
    Healthcare
    2% Growth
    Organized Channels
    19% Growth (like-to-like)32% Contribution to Domestic Business
    Quick Commerce
    35% Contribution to E-com Business
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Axiom Ayurveda

    acquisition · integrated · Consideration ₹NaN (cash)

    M&A

    IncNut

    acquisition · integrated

    Guidance & targets

    9
    CategoryTargetPriority
    Revenue
    Strategic Investment Portfolio Revenue
    ₹750-800 crores
    		High
    Growth
    Talcum Powder Growth
    substantially high numbers
    		Medium
    Growth
    Kesh King Portfolio Growth
    double-digit growth
    		High
    Growth
    Strategic Investment Portfolio Growth
    sustainable
    		High
    Growth
    International Business Growth
    significant growth
    		Medium
    Growth
    OTC Business Growth
    double-digit growth
    		High
    Profitability
    Strategic Investment Portfolio EBITDA Margin
    high single digit
    		Medium
    Profitability
    Gross Margins
    not come down / relatively better
    		Medium
    Taxation
    Effective Tax Rate
    25-26%
    		High

    What to watch in Q2 FY27

    5

    International Business Growth

    Q3 and Q4 FY27
    Current-12% YoY
    TargetSignificant growth

    Why it matters

    Recovery of international business is key to overall growth, especially after a 12% decline this quarter.

    And on the international front, I think the decline, this is now done. Most likely, you will see a significant growth coming in from the third and the fourth quarter because we have got we have realigned our a lot of international business strategies have been realigned in the last 1, 2 quarters when all these disruptions were happening. So I think you will see much better numbers in third and fourth quarters.

    Risks & concerns

    4
    RiskSeverity

    Input Cost Inflation

    Higher crude oil prices and sustained cost increases across packaging material led to 360 bps input cost increase. — Management acknowledged

    high

    West Asia Conflict

    Disruptions in the West Asia conflict constrained ability to execute international orders, contributing 200 bps to input cost increase. — Management acknowledged

    medium

    Changing Business Mix

    Integration of acquired businesses with lower margins led to moderation in gross margin compared to last year. — Management acknowledged

    medium

    Regulatory/Approval Delays for International OTC

    Certain OTC pain management products from India are unable to move to the Middle East due to pending approvals, impacting international business. — Management acknowledged

    medium

    Q&A highlights

    8

    “I think you will see something similar. So this is quite sustainable.”

    Analyst questioned if the 61% growth in strategic investments was one-off, and management confirmed its sustainability.

    asked by Abneesh Roy

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Emami reported a consolidated revenue growth of 15% to ₹1,039 crores for Q1 FY27. The domestic business was a key driver, growing by 20% (12% on a like-to-like basis) with an 8% volume growth. This performance indicates a strong underlying demand in the domestic market, despite some external challenges🌐.

    02

    Category Performance and Strategic Investments

    Hair and Scalp care was a top performer, delivering 11% growth, with Navratna Cool Oil showing strong double-digit growth. The strategic investment portfolio, including Axiom, IncNut, Man Company, and Brillare, demonstrated exceptional growth of 61% like-to-like and now contributes 18% to the domestic business, highlighting its increasing relevance as a new growth engine. Skin Care and Healthcare segments, however, showed more modest growth of 3% and 2% respectively.

    03

    Profitability and Cost Management

    Despite inflationary pressures from higher crude oil prices and packaging material, EBITDA grew by 6% to ₹226 crores, and Profit Before Tax increased by 4% to ₹195 crores. Input costs rose by 360 basis points, with 200 bps attributed to the West Asia conflict and 160 bps to business mix. Profit After Tax, however, declined by 16% to ₹137 crores due to the normalization of the effective tax rate to an expected 25-26% for FY27.

    04

    International Business Challenges and Outlook

    The international business faced headwinds, declining by 12% primarily due to disruptions from the West Asia conflict, which constrained order execution. Challenges in moving OTC pain management products from India due to pending approvals also contributed to the decline. Management anticipates a significant recovery and growth in the international segment during the third and fourth quarters of FY27 as these issues are addressed and strategies realigned.

    05

    Strategic Initiatives and Digital Transformation

    Emami is actively pursuing strategic initiatives to enhance growth and efficiency, including strengthening supply chain planning, inventory management, and distribution visibility. The company is deploying AI in sales operations for better planning and execution, and an analytical hub is being developed for data-driven decision-making. These initiatives are expected to be completed within the current financial year, supporting sustained profitable growth.

    06

    New Reporting Framework and M&A Strategy

    The company has transitioned from brand-wise to category-wise reporting to reflect its diversified portfolio and align with industry practices. Emami continues its aggressive M&A strategy, with Axiom and IncNut becoming subsidiaries in Q1 FY27, and plans to pursue more acquisitions in parallel. The strategic investment portfolio, currently at EBITDA neutral breakeven, is targeted to achieve high single-digit EBITDA margins within three years.

    This is an AI-generated summary of a publicly available earnings call transcript.