Emami reported its audited financial results for the quarter and year ended March 31, 2026, revealing a decline in annual revenue and profitability. The company's FY26 revenue recorded a degrowth of 1%, starkly missing its own guidance of 10% revenue growth. This performance underscores the challenges faced during the fiscal year, compounded by a broad-based year-on-year decline in Q4 metrics. Despite the disappointing FY26 outturn, management has expressed confidence in its FY27 strategy, targeting double-digit growth for key summer brands and a recovery in its international business. The Board of Directors also approved the re-appointment of Shri Harsha Vardhan Agarwal as Vice-Chairman & Managing Director for a further period of five years.

Q4 Financial Performance at a Glance

The following table summarises Emami's key Q4 financial metrics compared to the year-ago period:

Revenue and Profitability Under Pressure

Emami's Q4 revenue stood at ₹925 crore, declining from ₹963 crore reported in the corresponding quarter of the previous year. This top-line contraction reflects the broader pressure on the company's business during the quarter, attributed to unfavourable seasonal conditions affecting the summer portfolio and geopolitical disruptions in West Asia. The company also fell short of achieving double-digit revenue growth for the full year, marking a notable miss on a key performance benchmark.

EBITDA and Margin Contraction

On the operational front, EBITDA for Q4 came in at ₹187 crore, down from ₹219 crore in the year-ago period. The EBITDA margin narrowed to 20.2% from 22.8% YoY, indicating that cost pressures or lower operating leverage weighed on profitability during the quarter. Despite this, the company improved its gross margins to 68.4%, an expansion of 250 basis points, reflecting disciplined cost management and operational efficiencies. Management also highlighted lower margins in the talc category, while noting increased summer demand as a potential growth driver.

Net Profit Declines Year-on-Year

Emami's consolidated net profit for Q4 declined to ₹143 crore from ₹162 crore in the same quarter last year. The fall in net profit is consistent with the weaker revenue and EBITDA performance observed during the period, reflecting a challenging operating environment for the company.

FY26 Revenue Misses Guidance by Wide Margin

Beyond the quarterly results, Emami's full-year performance has also come under scrutiny. The company's FY26 revenue recorded a degrowth of 1%, a sharp divergence from its own guidance of 10% revenue growth. For the full year, revenues stood at ₹3,780 crore, while EBITDA stood at ₹964 crore and PAT at ₹775 crore. The following table highlights the extent of the guidance miss:

This significant gap between actual performance and stated guidance raises questions about the headwinds the company encountered during the fiscal year, compounding the pressure already visible in the quarterly numbers.

Talc Business Segment Performance

Management provided additional colour on the talc business, which contributed approximately ₹300 crore in FY26, accounting for around 10% of the company's overall revenue. The segment was flagged as a margin headwind during the year, with management specifically noting lower margins in the talc category as a factor weighing on overall profitability.

FY27 Outlook: Management Targets Recovery

Looking ahead, Emami's management has outlined a clear strategy for FY27, expressing confidence in a meaningful recovery. The company expects double-digit growth for its summer brands Navratna and Dermicool in H1 FY27, driven by increased seasonal demand. On the international front, the business forecasts strong double-digit growth from Q2 FY27, following anticipated single-digit growth in Q1 FY27. The following table summarises the key management guidance for FY27:

Strategic Investments and Dividend

During the year, the company made strategic investments to strengthen its future growth portfolio. It increased its stake in Axiom Ayurveda, making it a subsidiary, and is acquiring a majority stake in IncNut to bolster its presence in the personalised beauty segment. The Board declared interim dividends aggregating to ₹10 per share, amounting to a total payout of ₹436.5 crore.

Emami Limited has announced a conference call with analysts and investors scheduled for Thursday, 21 May 2026 at 4:00 PM IST, to be held following the declaration of the company's Q4 FY26 financial results. The intimation was filed by the Company Secretary & Compliance Officer, Ravi Varma, on 14 May 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Details of the call are also available on the company's official website.

Management Participants

The conference call will feature participation from a broad cross-section of Emami's senior leadership team, covering key functional areas including international business, growth, healthcare, sales, and finance. The following management representatives are scheduled to participate:

Conference Call Details

The call is open to participants across multiple geographies, with dial-in numbers provided for India and select international locations. The following table summarises the key logistical details:

Further Information

For additional details regarding the conference call, participants may contact the following representatives:

• Percy Panthaki | Tel: +91 91679 97661 | Email: percy.panthaki@iiflcap.com
• Siddhesh Deshmukh | Tel: +91 97660 45690 | Email: siddhesh.deshmukh@iiflcap.com

The full schedule of investor calls is also accessible through Emami's investor relations section at the company's official website.