Emami Q1 profit slips 13 per cent despite double digit revenue growth

MUMBAI: Beauty may be skin deep, but the balance sheet always tells the whole story. Emami kicked off FY27 with healthy top-line momentum, but higher costs and a tougher base shaved profits, underscoring that strong sales do not always translate into stronger earnings.

The FMCG major reported consolidated revenue from operations of Rs 1,079.7 crore for the quarter ended 30 June 2026, up 18.2 per cent from Rs 913.6 crore in the corresponding period last year. Including other income of Rs 4 crore, total income rose to Rs 1,083.7 crore, compared with Rs 917.1 crore a year ago.

Despite the robust revenue growth, profit after tax declined 13.3 per cent to Rs 104.8 crore from Rs 120.9 crore in the year-ago quarter. Profit before tax also slipped to Rs 138.3 crore, compared with Rs 157 crore a year earlier.

The company attributed the performance to higher operating expenses even as demand remained resilient across its portfolio.

Raw material consumption increased to Rs 211.2 crore from Rs 134.9 crore, while advertising and sales promotion expenditure climbed to Rs 204.9 crore from Rs 179.9 crore. Employee benefit expenses rose to Rs 103.7 crore, compared with Rs 89.3 crore a year ago. Total expenses stood at Rs 940.9 crore, up from Rs 754.3 crore in the corresponding quarter last year.

At the operating level, EBITDA increased to Rs 203.1 crore from Rs 196.8 crore, while the EBITDA margin stood at 18.8 per cent. Earnings per share fell to Rs 2.42 from Rs 2.79 in the year-ago period.

Emami continued to derive the bulk of its revenue from its FMCG business, which contributed Rs 1,079.7 crore during the quarter. The company said its business continues to operate through a single reportable segment encompassing FMCG products, vitamins, healthcare and personal care.

During the quarter, Emami also strengthened its portfolio through acquisitions. It completed the purchase of an additional 56 per cent stake in Axiom Ayurveda, taking its holding to 80 per cent, and acquired a 70 per cent stake in IncNut Digital, the parent company of The Man Company, expanding its presence in the fast-growing premium digital personal care market.

While revenue growth reflected sustained consumer demand and portfolio expansion, the quarter also highlighted the rising cost of growth, as increased investments in brands, acquisitions and input costs tempered the bottom line even as Emami continued to strengthen its presence across India’s FMCG landscape.