Emami — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Emami reported a strong Q3 FY26, with double-digit growth in consolidated net sales and domestic business, supported by robust volume growth. Profitability metrics like EBITDA and PAT also saw healthy increases, driven by margin expansion. The company highlighted strong performance across key brands and strategic subsidiaries, with a renewed focus on rural markets and digital channels.

Highlights

  • Consolidated net sales grew 11% YoY to INR1,152 crores.

  • Domestic business delivered 11% growth, driven by 9% volume growth.

  • EBITDA increased 13% YoY to INR384 crores, with margins expanding 110 bps to 33.4%.

  • Gross margin improved 30 bps to 70.6% due to cost discipline and price hikes.

  • Profit after tax (PAT) grew 15% YoY to INR319 crores.

  • Strategic subsidiaries (The Man Company and Brillare) achieved robust growth of 31%.

  • Second interim dividend of INR6 per share declared, bringing total 9-month dividend to INR10 per share.

Key financials

  1. Consolidated Net Sales ₹1,152 Cr +11%YoY
  2. Domestic Business Growth 11%
  3. Domestic Volume Growth 9%
  4. Gross Margin 70.6%
  5. EBITDA ₹384 Cr +13%YoY
  6. EBITDA Margin 33.4%
  7. PAT ₹319 Cr +15%YoY

What they filed

Q1 FY27: revenue up 3.2%, net profit up 11.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue709 879 781 756 604 −15%958 +9%730 −7%780 +3%
EBITDA226 328 191 201 168 −26%385 +17%196 +3%215 +7%
Net profit214 279 190 163 182 −15%330 +18%166 −13%182 +12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • BoroPlus
    16% Growth
  • Kesh King
    10% Growth
  • Pain Management
    8% Growth
  • Health Care Range
    7% Growth
  • Male Grooming Range
    4% Growth
  • Navratna and Dermicool
    1% Growth
  • Strategic Subsidiaries (The Man Company & Brillare)
    31% Growth
  • International Sales
    9% Growth

Capital allocation

high confidence
  • Dividend ₹6/share (interim)
    I'm also delighted to announce that our Board of Directors have declared a second interim dividend of 600%, amounting to INR6 per share for FY '26. The total dividend declared in 9 months FY '26 amount to INR10 per share, reflecting our confidence in our business performance and our commitment to reward the shareholders of the company.

Guidance & targets

Profitability

  • Standalone Income Tax Rate Profitability · FY27 onwards · High confidence 25%

    Previously 35% → 25%

    Further, I would also like to inform you that as per the recent proposed amendments in the union budget, our applicable income tax rate for the stand-alone entity would reduce to around 25% from 35% for FY '27 onwards.

    — Mohan Goenka

  • Consolidated Income Tax Rate Profitability · going ahead · Medium confidence around 20%
    So overall tax rate for the consol entity should be below that level. around 20% kind of.

    — Rajesh Sharma

Growth

  • Overall Business Growth Growth · Q4 and beyond · Medium confidence double-digit growth
    Looking ahead, we remain optimistic about Q4 and beyond. There's a better consumption momentum building in the environment, and we are positioned to capitalize on it.

    — Mohan Goenka

  • Brand Growth (post GST cut) Growth · ongoing · Medium confidence close to double-digit growth
    And because you rightly said that now the GST is at 5%, we are confident that the brand should get to close to double-digit growth. That is the target that we have given to the brand teams.

    — Mohan Goenka

  • Rural Brand Growth Growth · going forward · Medium confidence about 8%, 9% growth

    Previously 4%, 5% → about 8%, 9% growth

    So brands which were growing to at 4%, 5%, they should get to about 8%, 9% growth. That is the first target that we have.

    — Mohan Goenka

Product Launch

  • Smart & Handsome NPDs National Rollout Product Launch · second half of this year · Medium confidence roll out nationally
    So we are again trying to revamp from there to roll it out nationally. Maybe in the second half of this year, we will roll it out.

    — Mohan Goenka

Amortization

  • Amortization Period Amortization · next 4 years · High confidence another 3-4 years
    So that will continue for another 3, 4 years, and the rate would come down gradually to INR80 crores, INR70 crores and INR60 crores kind of. So gradually, it will come down. In the next 4 years, it will completely be done.

    — Rajesh Sharma

What to watch in Q4 FY26

Overall Business Growth

Q4 FY26
Current 11% consolidated net sales growth in Q3
Target double-digit growth

Why it matters

To confirm the sustained momentum and capitalize on improved consumption trends post GST disruptions.

Looking ahead, we remain optimistic about Q4 and beyond. There's a better consumption momentum building in the environment, and we are positioned to capitalize on it.

Risks & concerns

  • Extended winter impacting summer product sales

    medium

    The extended winter season could delay the loading of summer products like Navratna Oil, talc, and Dermicool, which are big summer brands.

    Management acknowledged

  • Erratic winter/summer cycles

    medium

    The weather cycles have become erratic, making it challenging to predict seasonal demand, as seen with warm spells in December and January.

    Management acknowledged

  • Registration issues for Ayurvedic exports

    medium

    The Ayurvedic portfolio for exports is currently very low due to complex registration issues in many countries, requiring a long-term effort to scale up.

    Management acknowledged

  • Geopolitical turmoil and lukewarm response in certain international markets

    medium

    Pressures in MENA regions like Iraq and North African markets have led to a decline or lukewarm response, impacting overall international growth despite strong performance elsewhere.

    Management acknowledged

  • Low penetration for many brands

    low

    While a concern, it also presents a significant opportunity for growth as penetrations are still on the lower side for most brands.

    Management acknowledged

Q&A highlights

6 direct
Impact of GST rate cuts on brand growth and new user addition Direct
And because you rightly said that now the GST is at 5%, we are confident that the brand should get to close to double-digit growth. That is the target that we have given to the brand teams.

Clarifies management's expectation for growth acceleration post GST rate reductions and the focus on new user acquisition.

Asked by Prakash Kapadia

National rollout strategy and timeline for Smart & Handsome NPDs Direct
So we are again trying to revamp from there to roll it out nationally. Maybe in the second half of this year, we will roll it out.

Provides a timeline and strategy for a key new product development, indicating a phased approach after initial test marketing.

Asked by Siddhesh Desmukh

Grammage increases due to GST rate cuts and their impact on volume Partial
So depending on the SKUs, whatever -- because the -- it was not possible to reduce the prices in the small SKUs. So whether it was 10%, 12%, accordingly, we have increased the grammages, different products...

Reveals the company's strategy of increasing grammage instead of reducing prices for small SKUs post-GST cuts, affecting about 20% of the portfolio, with full volume impact expected in Q4.

Asked by Harit Kapoor

Outlook on rural demand trends and the impact of GST cuts Direct
And all the focus for the company was also to build e-comm, modern trade and the new age brands. But because of the GST cuts, at least internally, we have said that the next growth drivers should come from rural and our focus would be increasingly going into rural markets.

Highlights a strategic shift towards rural markets as a key growth driver, especially after GST cuts, indicating a potential recovery in this segment.

Asked by Harit Kapoor

Revised tax rate for standalone and consolidated entities post union budget amendments Direct
So in fact, it has come down with the recent proposed amendments in the union budget. So going ahead, we should be at a 25% tax rate and also utilize 25% of our tax liability from MAT credit, which will continue for 5, 6 years minimum. ... So overall tax rate for the consol entity should be below that level. around 20% kind of.

Provides clear guidance on the expected reduction in tax rates, which will positively impact future profitability.

Asked by Amnish Aggarwal

Trade inventory levels after GST restocking/destocking Direct
Absolutely. I think we have great we have no excess inventories as far as the trade is concerned. ... And they're very well, I think. We have migrated very well.

Confirms that trade inventory levels have normalized, indicating a healthy channel and no significant trade loading.

Asked by Naveen Trivedi

Growth strategy for digital brands and specific actions taken Direct
We're also seeing significant growth coming from some of our new innovations is the Rosemary Oil Shots, some perfumes that we are seeing strong growth under The Man Company. And we have done a lot of renovation work as far as our grooming category is concerned...

Details the specific initiatives, including new product innovations and renovation work, driving the robust 31% growth in digital brands.

Asked by Nitin Gupta

Performance of the Male Grooming segment and factors impacting its growth Partial
So Ajay, you are right. The Male Grooming, particularly the Smart and Handsome range has not been growing for some time despite of the best effort..

Acknowledges a persistent challenge in the Male Grooming segment, indicating an area requiring continued strategic focus despite overall strong results.

Asked by Ajay Thakur

2 min read 6 chapters

Detailed narrative

Robust Q3 FY26 Performance Driven by Broad-Based Growth

Emami delivered a strong Q3 FY26, with consolidated net sales growing 11% year-on-year to INR1,152 crores. The domestic business was a key driver, also achieving 11% growth, underpinned by a robust 9% volume growth. This performance indicates a recovery and strong broad-based momentum following earlier GST 2.0 disruptions, with the favorable winter season playing to the company's strengths across its winter portfolio and healthcare range.

Profitability Expansion and Shareholder Returns

The company demonstrated strong profitability, with gross margin expanding 30 basis points to 70.6% due to rigorous cost discipline, judicious price hikes, and stable input costs. EBITDA grew 13% to INR384 crores, and EBITDA margins improved by 110 basis points to 33.4%. Profit after tax (PAT) saw a 15% increase, reaching INR319 crores. Emami also declared a second interim dividend of INR6 per share, bringing the total dividend for 9 months FY26 to INR10 per share, reflecting confidence in business performance and commitment to shareholders.

Strategic Focus on Rural Markets and Digital Channels

Emami is strategically focusing on rural markets, expecting them to be a significant growth driver going forward, especially after the GST rate cuts. The company aims for 8-9% growth in rural brands, up from previous 4-5%. Concurrently, its omnichannel strategy is performing well, with quick commerce sales doubling and now contributing 20% to its e-commerce business. Organized channels contributed 32% year-to-date, increasing their contribution by 280 basis points over the previous year.

Strong Performance of Key Brands and Subsidiaries

All major brands performed well in Q3, with BoroPlus growing by 16%, Kesh King by 10%, Pain Management by 8%, and the Health Care range by 7%. The Male Grooming range grew by 4%, while Navratna and Dermicool grew by 1%. Strategic subsidiaries, The Man Company and Brillare, together delivered a robust 31% growth, showcasing the success of purposeful innovation and premiumization strategies. International sales also grew 9%, with double-digit growth in key brands like 7 Oils in One, BoroPlus, and Creme 21.

Tax Rate Reduction and Future Outlook

Following recent union budget amendments, Emami anticipates a reduction in its applicable income tax rate for the standalone entity to around 25% from 35% for FY27 onwards. The overall consolidated tax rate is expected to be around 20%. Management expressed optimism for Q4 and beyond, citing building consumption momentum and strategic positioning to capitalize on market opportunities, despite potential challenges from an extended winter season.

New Product Development and Supply Chain Initiatives

The company continues to drive purposeful innovation, launching several new products and variants to address evolving consumer needs. Initial test markets for Smart & Handsome NPDs (sunscreen, deodorants, body wash) on digital channels have shown good response, with a national rollout planned for the second half of the year. Emami has also engaged KPMG to implement a future-ready supply chain transformation across omnichannel operations, enhancing efficiency and responsiveness.

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