The company says that the quarter witnessed one of the sharpest inflationary environments seen by the sector in recent years
Fast-moving consumer goods (FMCG) major Emami has reported a 16 per cent year-on-year (YoY) decline in its consolidated net profit in the first quarter of the current financial year. Net profit attributable to the equity holders of the parent slipped to Rs 137.35 crore in Q1FY27 from Rs 164.26 crore in Q1FY26.
The company said that the quarter witnessed one of the sharpest inflationary environments seen by the sector in recent years. Input costs increased, driven by higher crude oil prices and inflation across packaging materials and several other key inputs. As a result, gross margins contracted by 360 basis points to 65.8 per cent. Earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by 6 per cent to Rs 226 crore.
On a consolidated basis, revenue from operations grew by 15 per cent to Rs 1,039 crore during Q1FY27. Domestic business grew by 20 per cent. On a like-to-like basis, growth stood at a healthy 12 per cent, with volume growth of 8 per cent after considering the previous year numbers of Axiom Ayurveda and IncNut Digital.
Hair and scalp care emerged as one of the strongest-performing categories, delivering 11 per cent growth during the quarter. Skincare grew by 3 per cent and health care grew by 2 per cent during the quarter. The strategic Investments portfolio continued to be the standout performer. On a like-to-like basis, this portfolio grew by 61 per cent and now contributes approximately 18 per cent of domestic business.
“As we invest for the future, digital and AI are increasingly becoming core enablers of our growth strategy. By embedding these capabilities across our value chain, we are strengthening execution, improving agility and building a future-ready organisation that is well positioned to deliver sustained, profitable growth,” stated Harsha V Agarwal, Vice Chairman and Managing Director, Emami.
Healthy Growth Across Channels
Organised channels grew by 19 per cent on a like-to-like basis and now contribute 32 per cent of domestic business. Modern Trade (MT) and ecommerce maintained strong momentum, while quick commerce now contributes 35 per cent of ecommerce sales.
The International Business declined by 12 per cent during the quarter, primarily due to disruptions arising from the West Asia conflict, which constrained the company’s ability to execute orders. Despite these near-term headwinds, the underlying strength of the international franchise remains intact, the company noted.
The company said that it used this period to strengthen market fundamentals, improve pricing architecture and enhance operational agility, and remains confident of progressively regaining momentum as market conditions stabilise.
“The quarter tested the resilience of our operating model as elevated input costs continued to exert pressure on margins. Despite this, our focus on disciplined execution, cost optimisation and operational agility enabled us to deliver Ebitda growth of 6 per cent to Rs 226 crore and PBT growth of 4 per cent to Rs 195 crore,” highlighted Mohan Goenka, Vice Chairman and Whole-time Director, Emami.
The company added that Q2FY27 is expected to benefit from healthy demand trends across the portfolio and continued momentum in the strategic investment businesses.
