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.

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.