India Ratings and Research (Ind-Ra) has assigned a strong credit rating to Emami Limited 's bank loan facilities, reflecting the company's robust financial health and market position in the FMCG sector.

Credit Rating Details

Key Financial Highlights

• Revenue: INR 38.10 billion in FY25 (up from INR 35.80 billion in FY24)
• EBITDA: INR 10.30 billion in FY25 (increased from INR 9.50 billion in FY24)
• EBITDA Margin: 26.90% in FY25 (slight improvement from 26.50% in FY24)
• Interest Coverage: 110x in FY25 (up from 95x in FY24)
• Net Leverage: Maintained net cash position

Market Leadership

Emami continues to dominate several niche product categories:

Business Strengths

1. Strong Product Portfolio: Over 1,100 SKUs across various segments.
2. R&D Focus: 137 scientists and field experts at R&D centers in Mumbai and Kolkata.
3. Robust Distribution Network: Direct and indirect reach of 5.4 million outlets, with 3,400 distributors.
4. International Presence: 17% of revenue from international business, spanning over 70 countries.
5. Omni-channel Growth: E-commerce and modern trade contribute 23% to revenue.

Financial Position

• Net Cash Position: INR 6.30 billion at FYE25
• Gross Interest Coverage: 110x in FY25
• Working Capital Cycle: 80 days in FY25
• ROCE: 32.10% in FY25

Challenges and Risks

1. Intense competition in the FMCG sector
2. Exposure to raw material cost fluctuations
3. High dependence on seasonal products (43% of portfolio)
4. Limited increase in category penetration for some products

Emami's strong credit rating reflects its market leadership, robust financial performance, and strategic focus on niche product categories. The company's ability to maintain high margins and a net cash position, despite competitive pressures and strategic acquisitions, underscores its financial strength. However, the FMCG sector's inherent challenges and the company's exposure to seasonal products remain key areas to watch.

As Emami continues to expand its international presence and focus on strategic acquisitions, it will be crucial for the company to maintain its strong market position while navigating the evolving consumer landscape and potential economic uncertainties.

Emami Limited , a prominent Indian consumer goods company, has seen recent share encumbrance activities by one of its significant shareholders, Diwakar Finvest Private Limited. These transactions, which occurred on October 16-17, 2025, involved both the release and pledging of Emami shares with different lenders.

Transaction Details

Post-Transaction Holdings

Following these transactions, Diwakar Finvest's position in Emami Limited stands as follows:

• Total shares held: 9,87,94,786
• Percentage of total share capital: 22.63%
• Total encumbered shares: 1,90,05,957
• Percentage of encumbered shares: 4.35% of total share capital

Regulatory Compliance

Diwakar Finvest has reported these transactions to the National Stock Exchange of India Limited and BSE Limited, in compliance with Regulation 31(1) & 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was made on October 27, 2025, ensuring transparency in the company's shareholding patterns and encumbrances.

Market Context

Share encumbrance activities, while part of normal financial operations for large shareholders, can be of interest to market participants. They may reflect various financial strategies or needs. However, it's important to note that such transactions do not necessarily indicate any immediate change in the company's fundamental outlook or operations.

Investors and market analysts may consider monitoring such activities as part of their overall assessment of Emami Limited's stock, particularly given Diwakar Finvest's significant shareholding in the company.