Emami Limited has received a GST order from Bihar authorities demanding a total of ₹40.38 lakh, comprising tax, interest, and penalty components. The company disclosed this regulatory development in a filing dated December 20, 2025, pursuant to SEBI listing regulations.

Order Details and Components

The order was issued by the Office of the Superintendent, Kotwali Range, Patna Central Division, Patna I, Ranchi, CBIC, Bihar, under Section 74 of the Bihar GST/CGST/IGST Act, 2017. Emami Limited received the order on December 19, 2025.

Nature of Violation

The GST order pertains to discrepancies between Input Tax Credit (ITC) claimed as per GSTR-3B versus ITC reflected as per GSTR-2A. This type of mismatch typically occurs when there are differences in the tax credit claimed by a company and the credit available based on supplier filings.

Company's Response and Impact Assessment

Emami Limited has assessed that the matter will have no material impact on its financial, operational, or other business activities. The company has indicated its intention to explore filing an appeal against the order, suggesting it may contest the authorities' findings.

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows the guidelines specified in the SEBI Master Circular dated November 11, 2024.

Regulatory Compliance

The company has fulfilled its disclosure obligations by providing comprehensive details of the order, including the nature of alleged violations, financial implications, and potential impact on business operations. This transparency ensures shareholders and stakeholders remain informed about regulatory developments affecting the company.

Emami Limited has received a credit rating reaffirmation from CARE Ratings Limited, maintaining its strong financial standing in the fast-moving consumer goods sector. The rating agency announced that it has reaffirmed the company's CARE AA+ Stable/CARE A1+ rating for bank facilities worth ₹168.00 crore.

Rating Details and Rationale

The reaffirmed rating reflects Emami's established presence in the FMCG industry, supported by the extensive experience of its promoters and strong market positioning in ayurvedic and herbal personal care segments. CARE Ratings highlighted the company's robust financial performance, which showed growth in total operating income and continued healthy profitability margins.

Financial Performance and Market Position

Emami demonstrated strong financial metrics with revenue growth of 6.00% year-on-year, driven by 7.00% growth in domestic business and 4.00% growth in international operations. The company maintained a healthy PBILDT margin of 26.69%, significantly above industry averages, supported by effective cost management across all functions.

The company's extensive distribution network spans 5.4 million retail outlets in India and operations in over 70 countries globally. Key brands including Boroplus, Navratna, Dermicool, Zandu, Mentho Plus Balm, Fair and Handsome, and Kesh King hold significant market shares in their respective segments.

Performance Moderation

CARE Ratings noted slight moderation in total operating income and operating margins, attributed to unfavorable weather conditions impacting summer product demand, particularly Dermicool and Navratna. Additionally, temporary trade disruptions following GST rate cuts deferred winter portfolio loading, mainly affecting Boroplus products.

Capital Structure and Liquidity Position

The rating agency emphasized Emami's robust capital structure with minimal debt levels. The overall gearing stood at 0.03x as of March 31, compared to 0.04x in the previous year. The company maintains strong liquidity with cash, bank, and liquid investment balances of ₹845.00 crore as of September 30.

Working capital limit utilization remained at negligible levels for the 12 months ended November, while the operating cycle improved to 47 days from 52 days in the previous period.

Strategic Investments and Brand Portfolio

Emami continues to invest in brand strengthening and inorganic growth, with advertisement and sales promotion expenses accounting for 18.28% of sales. The company has made strategic acquisitions including stakes in Helios Lifestyle (The Man Company), Brillare Science, Cannis Lupus Services (Fur Ball Story), and Axiom Group (Alo Frut brands).

Rating Outlook and Commercial Paper Withdrawal

CARE Ratings maintains a stable outlook, expecting Emami to sustain its healthy business risk profile supported by established brands and strong market positioning. The rating agency has withdrawn the commercial paper rating with immediate effect, as no commercial paper has been issued and no amount remains outstanding.

The company's performance is expected to improve in the second half, driven by recovery in demand post-GST rate cuts and repo rate reductions, which should enhance consumer purchasing power and benefit from Emami's strong brand positioning and wide distribution network.