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 witnessed continued share encumbrance activities by one of its significant shareholders, Diwakar Finvest Private Limited. The latest transactions involve substantial pledges of shares to Bajaj Finance Limited across multiple dates in December 2025.

Recent Transaction Activities

Diwakar Finvest Private Limited has executed two significant pledge transactions in December 2025. The most recent transaction on December 19, 2025, involved pledging 5,00,000 shares of Emami Limited to Bajaj Finance Limited, disclosed on December 23, 2025.

Previous Transaction History

These recent activities follow earlier share encumbrance transactions in October 2025, which involved multiple transactions with different lenders:

Shareholding Position

Diwakar Finvest maintains a significant stake in Emami Limited with a total holding of 9,87,94,786 shares, representing 22.63% of the company's total share capital. The company's encumbered shares constitute 4.35% of the total share capital.

Regulatory Compliance

The disclosures were made to the National Stock Exchange of India Limited and BSE Limited under Regulation 31(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Santinath Paul, as the authorized signatory, submitted the required documentation on behalf of Diwakar Finvest Private Limited for both transactions.

Market Context

Share pledging activities by major shareholders are common financial operations that may reflect various strategic or liquidity requirements. These transactions provide transparency to market participants regarding the encumbrance status of shares held by substantial shareholders in Emami Limited.