This article first appeared on GuruFocus .
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Consolidated Revenue:INR799 crore, declined by 10% year-on-year.
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Domestic Business Revenue:Declined by 15% year-on-year.
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Medico Range Growth:Increased by 8%.
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Zandu Cough Syrup Growth:Increased by 43%.
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Honey Growth:Increased by 36%.
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Zandu Care Growth:Increased by 17%.
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Strategic Investment Portfolios Growth:Increased by 16% year-on-year and 36% sequentially.
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International Business Growth:Increased by 8%.
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Gross Margin:Stable at 71%.
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EBITDA:INR179 crore, declined by 29% year-on-year.
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PAT (Profit After Tax):INR148 crore, declined by 30% year-on-year.
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Interim Dividend:400%, amounting to INR4 per share for FY26.
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Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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The reduction in GST rates across key FMCG categories is structurally positive for Emami Ltd ( BOM:531162 ), benefiting 93% of their portfolio.
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Non-GST impacted categories showed encouraging growth, with Medico range up by 8%, Zandu cough syrup by 43%, Honey by 36%, and Zandu Care by 17%.
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Strategic investment portfolios rebounded with a 16% year-on-year growth and 36% sequential growth.
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The international business delivered a steady 8% growth despite macro and geopolitical headwinds.
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Gross margins remained stable at 71%, indicating strong cost discipline and input price stability.
Negative Points
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Consolidated revenues declined by 10% this quarter, led by a 15% decline in the domestic business.
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Temporary trade disruptions due to GST rate changes led to deferred purchases and inventory liquidation, impacting sales.
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The summer portfolio faced challenges due to heavy rains, significantly impacting category demand.
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EBITDA declined by 29% and PAT by 30%, reflecting the temporary impact of a lower top line.
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Volume decline in the domestic business was roughly around 16%, attributed to multiple factors including GST disruptions.
Q & A Highlights
Q: Can you tell us more about the Kesh King relaunch and what changes have been made in the marketing mix? A: Mohan Goenka, Vice Chairman of the Board, Whole Time Director: Kesh King has been upgraded from a pure Ayurveda product to a formulation that combines Ayurveda with science, incorporating ingredients like Gro Biotin and Plan to Mega 369. This new formulation has been well received in the market and will be supported by a significant advertising campaign.
Q: Regarding the GST-driven destocking in Q2, do you expect it to be fully recovered in Q3? A: Mohan Goenka, Vice Chairman of the Board, Whole Time Director: We are confident that the destocking will be recovered in Q3. We have already seen some recovery in October, and we expect the trend to continue.
Q: How are consumption trends shaping up in the rural market, especially with the shift in expectations for products like Kesh King? A: Mohan Goenka, Vice Chairman of the Board, Whole Time Director: We have observed good demand from rural areas across our categories. For Kesh King, we are focusing on shampoo sachets to drive growth, which has shown excellent results in rural markets.
Q: With the expansion of Smart & Handsome into multiple categories, is there a risk of cannibalization with TMC, and how is the core face cream category performing? A: Mohan Goenka, Vice Chairman of the Board, Whole Time Director: The new offerings are at different price points and categories, so they will not compete with TMC. There is a structural shift in the face cream category, but we are optimistic about growth with the new product offerings.
Q: Can you provide insights into the strategic investments portfolio and the factors driving its growth? A: Giriraj Bagri, Chief Growth Officer: The strategic investments portfolio has seen strong growth, driven by increased investment in brands like Brillare and TMC, new communication strategies, and channel gains in quick commerce, modern trade, and B2C websites. We expect this momentum to continue in the second half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
