Emami reported a mixed performance for the first quarter of FY26 (ended June 30, 2026), with consolidated net profit declining 15.4% year-on-year to ₹1,389.40 lacs, while revenue from operations grew 15% to ₹1,039.21 lacs. Domestic sales increased by 20%, with a 12% growth on a like-for-like basis, and the company recorded a volume growth of 8% for the quarter. The Board of Directors approved the unaudited financial results on August 4, 2026. The decline in profitability despite top-line growth was driven by higher tax expenses and the integration costs associated with recent acquisitions, including Axiom Ayurveda Private Limited and IncNut Digital Private Limited.

Financial Performance

The company's consolidated revenue from operations stood at ₹1,039.21 lacs for Q1FY26, up from ₹904.09 lacs in the corresponding quarter of FY25. Other income decreased to ₹18.50 lacs from ₹21.59 lacs. Total income for the quarter was ₹1,057.71 lacs.

Consolidated EBITDA rose marginally to ₹2,446.80 lacs from ₹2,358.10 lacs year-on-year. However, the EBITDA margin contracted to 23.54% from 26.08%. Finance costs increased significantly to ₹5.61 lacs from ₹2.43 lacs. Depreciation and amortization expenses remained relatively stable at ₹42.76 lacs. The following table summarizes the key consolidated financial metrics for the quarter:

The total tax expense for the quarter was ₹55.77 lacs, compared to ₹22.51 lacs in Q1FY25. This increase was partly due to the utilization of Minimum Alternate Tax (MAT) credit. The company utilized ₹13.45 lacs of MAT credit during the quarter, bringing the remaining MAT credit balance to ₹604.92 lacs as of June 30, 2026.

Operational Highlights

Emami's domestic business demonstrated strong momentum during the quarter, with domestic sales rising 20% overall and 12% on a like-for-like basis, reflecting underlying demand strength. The company also recorded a volume growth of 8% for Q1FY26, indicating healthy consumer offtake across its product portfolio.

Strategic Acquisitions

Emami expanded its portfolio through two significant acquisitions during the quarter. On April 1, 2026, the company acquired a controlling stake in Axiom Ayurveda Private Limited by paying a first tranche consideration of ₹100 crores towards a total agreed consideration not exceeding ₹200 crores. This transaction converted Axiom into a subsidiary, and its financial results have been consolidated from April 1, 2026.

Additionally, on June 1, 2026, Emami acquired a 60% controlling stake in IncNut Digital Private Limited for a consideration of ₹320.99 lacs under a Share Subscription and Purchase Agreement dated May 7, 2026. The remaining 40% shareholding will be acquired through subsequent tranches over the next four years. Both acquisitions were accounted for as business combinations under IND AS 103, making the current quarter's financials not directly comparable with previous periods.

Auditor's Qualified Conclusion

S.R. Batliboi & Co. LLP, the statutory auditors, issued a qualified conclusion on the consolidated financial results. The qualification arises because the interim financial results of certain subsidiaries and associates were not reviewed by their respective component auditors. Specifically, the results of one subsidiary group (revenue ₹80.20 lacs, net profit ₹5.32 lacs), another subsidiary group (revenue ₹14.69 lacs, net loss ₹0.92 lacs), and two associates (group share of net loss ₹1.55 lacs) were included based on management-provided unaudited figures. The auditors stated they are unable to comment on the potential financial impact if these entities had been reviewed.

Standalone Results

On a standalone basis, Emami reported a net profit of ₹1,822.20 lacs for Q1FY26, an increase from ₹1,630.90 lacs in Q1FY25. Standalone revenue from operations grew 3.1% to ₹779.92 lacs from ₹756.46 lacs. Standalone EBITDA improved to ₹2,686.20 lacs from ₹2,214.80 lacs. The standalone tax expense was ₹51.38 lacs, including ₹13.45 lacs of MAT credit utilization.

Emami Limited shareholders will vote on the reappointment of Vice-Chairman & Managing Director Harsha Vardhan Agarwal and a revision in his monthly remuneration from ₹ 30 Lacs to ₹ 34 Lacs at the company’s 43rd Annual General Meeting (AGM) scheduled for Tuesday, August 25, 2026. The meeting, conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM), also includes the reappointment of three retiring directors and the ratification of cost auditor fees for FY27.

The Board of Directors proposed the resolutions following a recommendation from the Nomination and Remuneration Committee. The salary revision takes effect from April 1, 2026, covering the remainder of Agarwal’s current term ending March 31, 2027. Additionally, shareholders are asked to approve his reappointment for a fresh five-year term commencing April 1, 2027, under a supplemental agreement dated May 21, 2026.

Key Resolutions for Shareholder Approval

The AGM agenda comprises both ordinary and special business items. The special business focuses on executive compensation and auditor appointments, while ordinary business covers director retirements by rotation.

Executive Compensation Structure

Under the proposed terms, Harsha Vardhan Agarwal’s annual remuneration will remain subject to the statutory ceiling of 5% of the company’s net profits as per Section 198 of the Companies Act, 2013. His compensation package includes a base salary of ₹ 34.00 lacs per month, with potential annual increments decided by the Board. He is also eligible for a commission not exceeding 0.5% of net profits, along with perquisites such as leave travel allowance, medical expenses up to one month’s salary, and official car facilities.

The other directors retiring by rotation are Aditya Vardhan Agarwal, a Non-Executive Director, and Prashant Goenka, a Whole-Time Director. Both are eligible and have offered themselves for reappointment. No change in remuneration is proposed for these two directors in this filing.

Voting and Participation Guidelines

Shareholders holding shares as of the cut-off date, Tuesday, August 18, 2026, are eligible to vote. Remote e-voting opens on Thursday, August 20, 2026, at 9:00 A.M. (IST) and closes on Monday, August 24, 2026, at 5:00 P.M. (IST). The facility is provided by Central Depository Services (India) Limited (CDSL). Members who vote remotely can still attend the virtual meeting but cannot vote again during the session. Physical attendance is dispensed with as per Ministry of Corporate Affairs circulars.

Ravi Varma, Company Secretary & Compliance Officer, signed the intimation filed with the National Stock Exchange of India Ltd. and BSE Limited. The Integrated Annual Report for FY26 and the AGM Notice are available electronically on the company’s website and exchange portals.