Emami LimitedQ1 FY27 Results & Financial Update
Emami Limited: Q1 FY27 consolidated results and company financials – revenue ₹1,039.21 Cr, PAT ₹138.94 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Emami Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Emami reported a resilient financial performance for the first quarter of fiscal 2027, navigating a challenging operating environment marked by uneven summer weather conditions across regions and sharp input cost pressures.
Consolidated revenue from operations grew by 15 percent year-over-year to 1,039.21 crore INR, driven by robust performance in the domestic market despite headwinds in the international segment.
The domestic business expanded by 20 percent on a reported value basis, translating to a like-to-like growth of 12 percent and solid volume growth of 8 percent after adjusting for the consolidation of Axiom Ayurveda and IncNut Digital.
Profitability faced severe pressure from an inflationary macro backdrop where crude oil prices and packaging material costs escalated, leading to a contraction in gross margins by 360 basis points to 65.8 percent.
Despite margin contractions, strict cost optimization and operational efficiencies allowed EBITDA to grow by 6 percent to 226.2 crore INR and Profit Before Tax to increase by 4 percent to 194.71 crore INR.
The international business faced an adverse 12 percent decline in revenues due to regional conflicts and supply chain disruptions in West Asia, which constrained the company's export order execution.
The company continued to advance its channel transformation agenda, with organized trade channels growing by 19 percent on a like-to-like basis and accounting for 32 percent of total domestic business.
Strategic investments continued to act as key growth engines, growing 61 percent on a like-to-like basis and representing roughly 18 percent of domestic revenues, bolstered by the consolidation of Axiom Ayurveda and IncNut Digital.
01 · Business model
What does Emami do?
Emami Limited is one of India's leading fast-moving consumer goods companies, founded in 1974, with a portfolio comprising over 550 personal care and healthcare products.
The company operates through a diverse brand umbrella that includes well-known household names such as Navratna, BoroPlus, Zandu Balm, Kesh King, Dermicool, and Smart and Handsome.
Emami distributes its products across a robust network spanning more than 5.4 million retail outlets in India, supported by over 3,400 distributors, alongside a presence in over 70 international countries across regions like SAARC, MENAP, SEA, Africa, and CIS.
Over the years, the company has bolstered its market positioning and growth portfolio via strategic acquisitions and investments, including Zandu, Kesh King, Creme 21, Dermicool, The Man Company, Brillare, Axiom Ayurveda, and IncNut Digital.
02 · Historical context
What shaped the business before this quarter
In 2008, Emami acquired Zandu Pharmaceutical Works Ltd., expanding its footprint into Ayurvedic healthcare and pharmaceuticals.
In 2015, the company acquired the iconic Ayurvedic hair and scalp care brand Kesh King to fortify its hair care portfolio.
In 2019, Emami acquired Creme 21, a German skincare brand, to expand its international skincare footprint.
In 2022, the company acquired Dermicool to capture leadership in the prickly heat and cool talc segment.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q1 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹1,039.21 Cr | ₹904.09 Cr | ₹925.10 Cr |
| Total income | ₹1,057.71 Cr | ₹925.68 Cr | ₹948.28 Cr |
| Profit before tax | ₹194.71 Cr | ₹186.77 Cr | ₹164.07 Cr |
| Profit after tax | ₹138.94 Cr | ₹164.26 Cr | ₹143.17 Cr |
| EPS | ₹3.15 | ₹3.76 | ₹3.28 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Hair and Scalp care delivered double-digit growth of 11 percent, anchored by strong consumer demand and strategic focus on low-unit-packs (LUPs) and 10 INR SKUs.
Skin care grew by 3 percent despite uneven summer weather conditions across different regions in India.
Health care products grew by 2 percent, supported by double-digit growth in the over-the-counter (OTC) range and robust demand for brands like Zandu Nityam and Mugdha Rasa.
The strategic investments portfolio surged by 61 percent on a like-to-like basis, now contributing approximately 18 percent of domestic business.
What drove margins
The quarter witnessed sharp inflationary headwinds in raw materials, driven by higher crude oil prices and increased costs for packaging materials and key inputs.
Despite raw material pressures, operational efficiencies and disciplined cost optimization enabled the company to sustain a 6 percent growth in EBITDA.
Input costs increased by 360 basis points YoY, out of which roughly 200 bps was due to the West Asia conflict impact and 160 bps was due to product mix.
At an aggregate level, the strategic investment portfolio is at EBITDA neutral/breakeven, with gross margins above 55% across all four start-ups (TMC north of 60%, Brillare and IncNut north of 70%).
At an aggregate level, the four strategic investment brands are currently at EBITDA neutral breakeven, targeting high single-digit EBITDA margins at the 3-year point.
The company implemented measured price increases and plans further pricing actions to offset absolute input cost increases over the financial year, supported by procurement efficiencies.
05 · Demand, customers & order book
Where demand is coming from
Quick commerce emerged as a major driver, contributing 35 percent of total e-commerce sales, while organized channels grew by 19 percent on a like-to-like basis.
Products remain accessible across more than 5.4 million retail outlets in India backed by a distributor network exceeding 3,400 partners.
Skin care grew by 3% during the quarter, impacted by regional summer season divergence, though the talc portfolio delivered high single-digit growth while Male Grooming and BoroPlus registered low single-digit growth.
Healthcare grew by 2%, with the OTC portfolio growing in the high teens and the Medico range posting single-digit growth.
Skin care grew by 3% during the quarter, impacted by regional divergences in summer and prior-period softness in talc, though talc is expected to recover strongly in subsequent quarters.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Emami transitioned its disclosure framework from brand-wise reporting to category-wise reporting, highlighting segments like Skin Care, Hair and Scalp Care, Healthcare, and Strategic Investments.
Navratna Cool Oils delivered double-digit growth, Kesh King grew in mid-single digits, and 7 Oils in One recorded remarkable momentum with the introduction of a 350ml SKU in modern trade.
Talc and prickly heat powders posted mid-single-digit growth, while Smart and Handsome and BoroPlus experienced low-single-digit sales growth.
Geography and market mix
With strategies realigned and expected clearance of pending export approvals from India, management expects significant growth in the international business during Q3 and Q4.
Personal care manufacturing in UAE, Thailand, and Germany has recovered, but OTC pain management production in India awaits regulatory export approvals.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Executing three strategic initiatives including supply chain planning enhancements, Sales code AI deployment for sales productivity, and an analytical hub for enterprise-wide data and AI insights.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The company increased its stake in Axiom Ayurveda (AloFrut), making it a wholly-owned subsidiary effective 1st April 2026.
Emami acquired a controlling 60 percent stake in IncNut Digital, strengthening its presence in the personalized beauty and personal care segment through Vedix and SkinKraft effective 1st June 2026.
09 · Reported developments
What changed operationally
Navratna deployed high-impact digital campaigns generating over 421 million impressions and over 6.6 million engagements via digital comedy properties on streaming platforms.
Emami received the Golden National Quality Award 2026 from the Institute of Directors, and various manufacturing units secured environmental and kaizen efficiency awards.
Delivered 11% growth during the quarter, led by strong double-digit growth in Navratna Cool Oil and mid-single-digit growth in Kesh King, with 7 Oils in One maintaining robust growth.
Strategic investment portfolio grew by 61% on a like-to-like basis, now contributing 18% of the domestic business, driven by momentum in brands like The Man Company and Brillare.
Organized channels grew by 19% on a like-to-like basis, contributing 32% of domestic business, with modern trade and e-commerce maintaining strong momentum (quick commerce contributing 35% of e-commerce business).
The OTC health portfolio grew in high teens, while strategic investments grew 61% like-to-like with brands like The Man Company growing north of 20%.
10 · Pressure points & risks
What is not going smoothly
An uneven summer with intense heat in southern and western regions contrasted with milder conditions in the north and east, impacting seasonal product offtake.
International business declined by 12% during the quarter due to West Asia conflict disruptions constraining order execution, particularly affecting the export of pain management products from India.
Witnessed inflationary pressures led by higher crude oil prices and sustained packaging material cost increases, alongside business mix changes from acquired businesses, resulting in higher COGS and lower gross margins.
Faced severe cost pressures from higher crude oil prices and sustained packaging material cost increases, increasing input costs by 360 bps (200 bps due to West Asia conflict and 160 bps due to mix).
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
The effective tax rate for the full year is expected to be around 25% to 26% following the expiration of certain fiscal benefits enjoyed in the previous year.
Standalone other income includes a dividend of roughly INR32 crores from an international subsidiary, which gets eliminated upon consolidation.
Acquisitions and investments like Axiom were funded internally using available surpluses, resulting in lower other income compared to the previous year due to utilization of funds and subsidiary dividend payouts.
12 · Management guidance & targets
What management is targeting from here
Management expects start-up/strategic investment revenue to reach between INR750 crores to INR800 crores by the end of the financial year.
Management is implementing further pricing actions to more than offset absolute input cost increases during the year and expects upcoming quarters to be relatively better.
The strategic investment and start-up segment is projected to hit INR750 crores to INR800 crores by the end of FY27.
Anticipates significantly better numbers and strong growth in the international business and core categories in Q3 and Q4 following strategy realigned to address regional disruptions.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
New Product Launches
The company expanded its offerings with launches including Creme 21 Xtra Clear range, face wash ranges, Navratna Hair Tonic, and Smart and Handsome beard care items.
Reported update
Marketing Campaign Initiatives
Emami launched high-profile advertising campaigns featuring celebrities like Kapil Sharma, Aakash Gupta, Varun Dhawan, and David Dhawan to enhance youth and rural engagement.
14 · Management call deep dive
What management said on the conference call
Operating takeaways
18 key pointsWith strategies realigned and expected clearance of pending export approvals from India, management expects significant growth in the international business during Q3 and Q4.
Transitioned disclosure framework from brand-wise to category-wise reporting to reflect portfolio scale and diversification across key consumer segments.
The effective tax rate for the full year is expected to be around 25% to 26% following the expiration of certain fiscal benefits enjoyed in the previous year.
Skin care grew by 3% during the quarter, impacted by regional summer season divergence, though the talc portfolio delivered high single-digit growth while Male Grooming and BoroPlus registered low single-digit growth.
Healthcare grew by 2%, with the OTC portfolio growing in the high teens and the Medico range posting single-digit growth.
Executing three strategic initiatives including supply chain planning enhancements, Sales code AI deployment for sales productivity, and an analytical hub for enterprise-wide data and AI insights.
Input costs increased by 360 basis points YoY, out of which roughly 200 bps was due to the West Asia conflict impact and 160 bps was due to product mix.
At an aggregate level, the strategic investment portfolio is at EBITDA neutral/breakeven, with gross margins above 55% across all four start-ups (TMC north of 60%, Brillare and IncNut north of 70%).
Standalone other income includes a dividend of roughly INR32 crores from an international subsidiary, which gets eliminated upon consolidation.
Management expects start-up/strategic investment revenue to reach between INR750 crores to INR800 crores by the end of the financial year.
Management is implementing further pricing actions to more than offset absolute input cost increases during the year and expects upcoming quarters to be relatively better.
The strategic investment and start-up segment is projected to hit INR750 crores to INR800 crores by the end of FY27.
At an aggregate level, the four strategic investment brands are currently at EBITDA neutral breakeven, targeting high single-digit EBITDA margins at the 3-year point.
Personal care manufacturing in UAE, Thailand, and Germany has recovered, but OTC pain management production in India awaits regulatory export approvals.
Skin care grew by 3% during the quarter, impacted by regional divergences in summer and prior-period softness in talc, though talc is expected to recover strongly in subsequent quarters.
The company implemented measured price increases and plans further pricing actions to offset absolute input cost increases over the financial year, supported by procurement efficiencies.
Acquisitions and investments like Axiom were funded internally using available surpluses, resulting in lower other income compared to the previous year due to utilization of funds and subsidiary dividend payouts.
Anticipates significantly better numbers and strong growth in the international business and core categories in Q3 and Q4 following strategy realigned to address regional disruptions.
Important analyst Q&A
5 key pointsDhruv Aggarwal confirmed that the 61% growth across strategic investments is sustainable, noting broad-based performance and robust momentum in D2C channels like TMC and Brillare.
Rajesh Sharma clarified that standalone other income of INR53 crores includes an approximately INR32 crore dividend from an international subsidiary that is eliminated in consolidation.
Rajesh Sharma noted that acquisitions like Axiom are funded internally through existing company surpluses, which will result in slightly lower other income going forward compared to last year.
Dhruv Aggarwal confirmed that the 61% growth across the four subsidiaries is sustainable, driven by robust volume and value expansion across brands like TMC and Axiom.
Rajesh Sharma explained that the effective tax rate was higher around 28%-29% due to the expiration of prior fiscal benefits, and should normalize to 25%-26% for the full year.
15 · Key Q&A
The quarter, answered directly
What does Emami do?
Emami Limited is one of India's leading fast-moving consumer goods companies, founded in 1974, with a portfolio comprising over 550 personal care and healthcare products.
What is the clearest takeaway from Q1 FY27?
Emami reported a resilient financial performance for the first quarter of fiscal 2027, navigating a challenging operating environment marked by uneven summer weather conditions across regions and sharp input cost pressures.
What drove revenue or demand?
Hair and Scalp care delivered double-digit growth of 11 percent, anchored by strong consumer demand and strategic focus on low-unit-packs (LUPs) and 10 INR SKUs.
What mattered most for margins or profitability?
The quarter witnessed sharp inflationary headwinds in raw materials, driven by higher crude oil prices and increased costs for packaging materials and key inputs.
What changed operationally beyond the headline numbers?
Executing three strategic initiatives including supply chain planning enhancements, Sales code AI deployment for sales productivity, and an analytical hub for enterprise-wide data and AI insights.
What is management guiding or targeting from here?
Management expects start-up/strategic investment revenue to reach between INR750 crores to INR800 crores by the end of the financial year.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Input Cost Stabilization: Monitor trends in crude oil prices and packaging material inflation for potential relief on gross margins in subsequent quarters.
- 02
International Recovery: Track geopolitical developments in West Asia and their impact on the recovery trajectory of the international business segment.
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