Emami Limited , a leading Indian FMCG company, has released its financial results for the second quarter of fiscal year 2026, revealing a temporary setback in revenue amid significant GST reforms. The company reported a consolidated revenue of ₹799.00 crore for Q2 FY26, marking a 10% year-on-year decline.

Impact of GST Reforms

The quarter witnessed a transformational policy development with the government's decision to reduce GST rates across key FMCG categories. For Emami, this reform is structurally positive, with nearly 88% of its core domestic portfolio benefiting from the reduction in GST from 12% or 18% to 5%. This takes the company's total 5% GST rate portfolio coverage in the core domestic business to around 93%.

While the GST reform lays the foundation for long-term demand acceleration, its implementation caused temporary trade disruptions in September. Trade channels and consumers deferred purchases in anticipation of lower MRPs, while distributors focused on liquidating higher-cost inventory.

Financial Performance

The company's financial metrics for Q2 FY26 are as follows:

Despite the revenue decline, Emami's non-GST impacted portfolio delivered encouraging results, growing by 10% during the quarter.

Strategic Initiatives and Product Innovations

Emami continued its strategy of purposeful innovation and premiumization:

• Smart and Handsome, rebranded from Fair and Handsome last year, expanded its portfolio with 12 new SKUs across various male grooming categories.
• Kesh King was relaunched as Kesh King Gold, featuring refreshed packaging, sharper positioning, and an upgraded formulation.
• The Zanducare portfolio was strengthened with new product additions.

International Business Performance

The company's International Business delivered steady 8% growth despite persistent macro and geopolitical headwinds. Emami launched new products under the Creme 21 brand to enhance its presence in skincare and personal care categories globally.

Management Commentary

Mr. Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, stated, "We are happy that over 90% of our core domestic portfolio now falls under the lowest GST rate of 5%, making our products more affordable and accessible to consumers. The quarter's performance was a temporary impact of trade disruptions linked to the pending GST revision and weak summer."

Mr. Mohan Goenka, Vice Chairman and Whole-Time Director, added, "October marked a clear turning point, with trade sentiment rebounding and deferred winter loading recovering, putting us on a solid footing for the second half of the year."

Outlook

Despite the short-term challenges, Emami's management remains confident of strong growth in the coming quarters. The company plans to continue strengthening its portfolio through premiumisation and value-added innovation to align with evolving consumer preferences.

The Board of Directors has declared an interim dividend of 400%, amounting to ₹4.00 per share for FY26.

As Emami navigates through this transitional period, the company appears well-positioned to capitalize on the long-term benefits of the GST reforms and its strategic initiatives in product innovation and market expansion.

Emami Limited , a leading Indian personal care and healthcare company, has reported its financial results for the quarter and half-year ended September 30, 2025, along with several key corporate actions.

Interim Dividend Announcement

The Board of Directors has approved a first interim dividend of Rs 4 per equity share (400%) for the financial year 2025-26. The dividend will be payable on or before December 9, 2025, with November 14, 2025 set as the record date. This dividend will be distributed across 43.65 crore equity shares.

Corporate Actions and Investments

During the period, Emami made several strategic financial moves:

• Converted loan receivables into equity investments in two subsidiaries:
  • Brillare Science Limited: Rs 2,153.00 lacs
  • Helios Lifestyle Limited: Rs 855.00 lacs
• Converted Rs 820.00 lacs of loan receivables into Optionally Convertible Debentures of Cannis Lupus Services India Private Limited
• Made additional investments of Rs 400.00 lacs in Cannis Lupus Services India Private Limited

Tax Benefits

The company's manufacturing facility in Assam continues to benefit from income tax advantages under section 80IE. This resulted in the recognition of MAT (Minimum Alternate Tax) credit of Rs 3,775.00 lacs for the six-month period.

Financial Performance Overview

While detailed financial metrics for the quarter were not provided in the update, the company has reported its unaudited financial results for the quarter and half-year ended September 30, 2025.

Outlook

Emami's strategic investments in its subsidiaries and the conversion of loan receivables into equity and debentures indicate a focus on strengthening its group companies. The dividend payout and tax benefits from its Assam facility may be seen as positive factors for the company's financial stability and shareholder value.

Investors and analysts may look forward to more detailed financial metrics to assess the company's performance in the context of current market conditions and its growth strategies.