Emami Limited Q2 revenue rises 36% as PAT falls 2% year on year

Emami reported consolidated revenue from operations of Rs 1,087.65 crore for the quarter ended September 30, 2026, up 36% from a year earlier, but profit after tax fell 2% to Rs 145.50 crore as total tax expense rose to Rs 48.12 crore from Rs 1.83 crore.

How did Emami perform in the September 2026 quarter?

Emami’s revenue from operations rose by Rs 289.14 crore year on year from Rs 798.51 crore in the quarter ended September 30, 2025. Total income increased to Rs 1,110.60 crore from Rs 819.88 crore, including other income of Rs 22.95 crore versus Rs 21.37 crore a year earlier.

Quarter on quarter, revenue from operations increased from Rs 1,039.21 crore in the quarter ended June 30, 2026. PAT rose sequentially from Rs 138.94 crore, while earnings per share increased to Rs 3.30 from Rs 3.15 in the preceding quarter.

For the half year ended September 30, 2026, Emami’s revenue from operations rose to Rs 2,126.86 crore from Rs 1,702.60 crore in the corresponding prior-year period. Half-year PAT, however, declined to Rs 284.44 crore from Rs 312.61 crore despite profit before tax increasing by Rs 51.38 crore to Rs 388.33 crore.

Why did Emami’s profit after tax decline despite higher revenue?

Emami’s PAT declined because total tax expense increased by Rs 46.29 crore year on year to Rs 48.12 crore, exceeding the Rs 43.44 crore increase in profit before tax. Current tax was Rs 41.08 crore, minimum alternate tax, or MAT, credit utilisation was Rs 11.82 crore, and deferred tax credit was Rs 4.78 crore.

Total expenses increased by Rs 245.35 crore to Rs 865.33 crore in the September 2026 quarter. Cost of materials consumed rose to Rs 304.10 crore from Rs 200.48 crore, advertisement and sales promotion increased to Rs 215.70 crore from Rs 156.39 crore, and employee benefits expense reached Rs 140.13 crore from Rs 121.22 crore.

Earnings before finance costs, depreciation and amortisation, share of associates’ loss, exceptional items and tax increased to Rs 245.27 crore from Rs 199.90 crore. Finance costs rose to Rs 6.08 crore from Rs 2.63 crore, while depreciation and amortisation were largely unchanged at Rs 45.29 crore compared with Rs 45.27 crore.

The share of loss from associates narrowed to Rs 0.28 crore from Rs 1.82 crore in the year-earlier quarter. That reduction supported profit before tax, but the higher tax expense resulted in the lower reported PAT.

Which markets drove Emami’s revenue growth?

Emami’s revenue within India increased 46% year on year to Rs 905.45 crore in the September quarter from Rs 618.32 crore. Revenue outside India was Rs 182.20 crore, marginally above Rs 180.19 crore, so domestic sales accounted for Rs 287.13 crore of the Rs 289.14 crore total revenue increase.

Sequentially, India revenue declined from Rs 911.96 crore in the June 2026 quarter, while overseas revenue increased from Rs 127.25 crore. These movements resulted in total revenue from operations of Rs 1,087.65 crore in the September quarter, compared with Rs 1,039.21 crore in the preceding quarter.

Emami reports one operating segment, Personal and Healthcare, rather than separate product-line profitability. Non-current assets, excluding tax assets, financial assets and investments accounted for using the equity method, stood at Rs 1,706.36 crore at September 30, 2026, comprising Rs 1,671.76 crore in India and Rs 34.60 crore outside India.

How did Emami’s cash flow and balance sheet change?

Emami generated net cash from operating activities of Rs 266.77 crore in the half year ended September 30, 2026, compared with Rs 235.49 crore in the corresponding 2025 period. Cash generated from operations before direct taxes was Rs 337.45 crore, and direct taxes paid were Rs 70.68 crore.

Working-capital changes used Rs 118.02 crore in the first half, compared with Rs 87.90 crore a year earlier. Inventory increased by Rs 97.33 crore and trade receivables increased by Rs 48.87 crore, partly offset by a Rs 39.39 crore increase in trade payables and other liabilities.

Total assets stood at Rs 4,484.93 crore on September 30, 2026, compared with Rs 3,836.44 crore on March 31, 2026. Cash and cash equivalents fell to Rs 47.36 crore from Rs 176.75 crore after financing cash outflows of Rs 317.92 crore and investing cash outflows of Rs 79.84 crore during the half year.

Investing activities included Rs 359.23 crore paid towards a business combination, net of cash and cash equivalents acquired. Financing outflows included Rs 207.33 crore for the share buyback including transaction costs and taxes, while current investments declined to Rs 184.92 crore from Rs 471.88 crore at March 31, 2026.

What acquisitions, dividend and review matters did Emami disclose?

Emami said the September 2026 quarter and half-year figures are not comparable with previous periods because Axiom Ayurveda Pvt. Ltd. became a subsidiary from April 1, 2026 and IncNut Digital Pvt. Ltd. became a subsidiary from June 1, 2026. Emami paid the first Rs 100 crore tranche to obtain control of Axiom, against total agreed consideration of Rs 200 crore for the remaining 73.5% stake.

Emami acquired a controlling 60% stake in IncNut for Rs 320.99 crore under an agreement dated May 7, 2026. The remaining 40% stake will be acquired through subsequent tranches over the next four years, and Emami recorded a financial liability for that remaining stake at fair value.

The board declared an interim dividend of Rs 5 per fully paid equity share, equal to 500% of face value, with November 13, 2026 set as the record date. Emami also completed its buyback on October 9, 2026, purchasing 73 lakh shares for Rs 281.24 crore under a programme with a maximum size of Rs 282 crore.

The statutory auditor issued a qualified conclusion on the consolidated results because interim information for one subsidiary, including two subsidiaries, had not been reviewed by an auditor. That entity reported September-quarter revenue of Rs 83.57 crore and PAT of Rs 9.41 crore, and the auditor said it could not comment on any financial impact had the information been reviewed.

Conclusion

Emami delivered 36% consolidated revenue growth in the September 2026 quarter, led principally by a Rs 287.13 crore increase in India revenue, and increased half-year operating cash flow by Rs 31.28 crore. However, PAT declined by Rs 2.85 crore because the tax charge rose by Rs 46.29 crore year on year while material, promotion and employee costs increased.

The next disclosed matters to watch are the acquisition of IncNut’s remaining 40% stake through tranches over four years, the second Axiom acquisition tranche, and the November 13, 2026 record date for the Rs 5-per-share interim dividend. Comparisons with earlier periods will remain affected by the consolidation of Axiom from April 1, 2026 and IncNut from June 1, 2026.