Emami Limited reported flat revenue growth for the quarter ended June 30, as unseasonably cool weather and early monsoons impacted consumption, particularly in its summer-focused portfolio. Despite these challenges, the company maintained stable financials and saw growth in several key segments.

Revenue and Profit

The company's overall revenue remained largely flat compared to the same quarter last year. However, excluding the talcum powder and prickly heat powder category, Emami's core domestic business delivered a healthy 6% revenue growth and a 3% volume growth.

Profit after tax grew by 9% to INR 164.00 crores, while EBITDA stood at INR 214.00 crores, a marginal decline of 1% with a 20 basis point contraction in margins.

Category Performance

Channel Performance

• Organized Channels: Grew by 6%, with saliency improving by 190 basis points.
• Quick Commerce: Scaled rapidly, growing nearly 3x year-on-year.

International Business

The international business delivered a modest 2% growth despite macroeconomic volatility and geopolitical uncertainty in some key markets. Excluding Bangladesh, which faced challenges, other markets grew by approximately 14%.

Financial Metrics

• Gross Margins: Expanded by 170 basis points to 69.40%.
• EBITDA Margin: Contracted by 20 basis points, primarily due to flat top line.

Strategic Initiatives

1. Product Innovations: Launched Dermicool Prickly Heat spray and new variants under Navratna and BoroPlus brands.
2. Brand Revamps:
   • Smart & Handsome is being extended into other Male Grooming categories.
   • Kesh King is undergoing a strategic transformation.
   • The Man Company is implementing a 360-degree brand revamp.
3. Digital Focus: Amplifying growth on marketplace and quick commerce platforms to drive reach among new-age consumers.

Outlook

Mohan Goenka, Vice-Chairman and Whole-time Director, expressed confidence in the company's strategic positioning: "With our strategic levers of innovation, distribution expansion, digital acceleration, and cost agility firmly in place, we are well-positioned to drive sustainable and profitable growth in the quarters ahead."

The company anticipates gradual improvement in the macro environment, supported by favorable monsoons, stabilizing inflation, and ongoing consumption recovery. Emami remains confident about maintaining margins and does not foresee significant input cost pressures in the near term.

As Emami continues to navigate challenges in certain segments, its focus on innovation and strategic brand transformations aims to drive growth and maintain its strong market position in the coming quarters.

Emami Limited , a leading Indian FMCG company, has announced its financial results for the first quarter, demonstrating resilience in the face of challenging market conditions. The company reported a 9% year-on-year growth in Profit After Tax (PAT) despite a flat topline performance.

Financial Highlights

• Revenue from Operations remained stable at ₹904.00 crore
• Profit After Tax (PAT) grew by 9% to ₹164.00 crore
• Gross Margins expanded by 170 basis points to 69.40%
• EBITDA stood at ₹214.00 crore

Business Performance

The quarter witnessed persistent pressure on urban discretionary consumption, while rural demand showed signs of recovery. However, an unusually soft and shortened summer, caused by unseasonal rainfall and the early arrival of the monsoon, negatively impacted consumption across the company's summer-centric portfolio.

Despite these macro headwinds, Emami maintained a stable topline performance. Key highlights include:

• Core domestic business (excluding Talc/PHP) posted 6% revenue growth
• International Business delivered modest growth of 2%
• Talc/Prickly Heat Powder (PHP) category declined 17% YoY due to adverse weather conditions, but remains strong on a 2-year CAGR of 13%

Segment Performance

• Pain Management Range and BoroPlus Antiseptic Creams delivered strong growth
• Navratna Cool Oils grew by 6%
• BoroPlus Antiseptic Creams saw a significant growth of 60%
• Zandu & Mentho Plus Balms increased by 16%

Innovation and New Launches

Emami continued to focus on innovation as a key growth lever. New product launches during the quarter included:

• Dermicool Prickly Heat Spray
• Navratna Ayurvedic Hairfall Control Oil
• Navratna Cool Talc – Fresh Floral
• BoroPlus Icy Citrus Blast Prickly Heat Powder

The company also introduced several products exclusively through its Zanducare platform, including Zandu Shilajit Cool Rush Capsules & Resin, Zandu Kansa Wand Ayurvedic Massager, and Zandu Chia & Flax Seeds.

Management Commentary

Mr. Harsha V Agarwal, Vice Chairman and Managing Director of Emami Limited, commented on the results: "Our performance this quarter reflects the underlying strength and resilience of our brands, even in the face of an unusually subdued summer. Our Talc/PHP category maintained a 2-year CAGR of 13%. Looking ahead, we are optimistic about growth in the coming months, driven by strong monsoon conditions, easing inflation, and potential interest rate reductions."

Mr. Mohan Goenka, Vice Chairman and Whole-Time Director, added: "Despite a flattish topline, we delivered a 9% growth in Profit After Tax, underscoring our sharp focus on profitability and operational efficiency. We remain confident in our margin trajectory, supported by favourable input costs and operational efficiencies."

Future Outlook

Emami expects the macro environment to gradually improve, supported by a buoyant monsoon, stabilizing inflation, and ongoing consumption recovery. The company remains committed to driving sustained, profitable growth through strategic levers of innovation, distribution expansion, digital acceleration, and cost agility.

As Emami continues to navigate through market challenges, its focus on core brands, innovation, and operational efficiency positions it well for future growth in the competitive FMCG landscape.