Emami Q2 domestic growth was 32% on like-for-like basis

Emami Limited reported 49% domestic revenue growth in Q2FY27, but its like-for-like domestic growth was 32% after previous-year revenues from Axiom Ayurveda and IncNut Digital were included in the comparison. The 17-percentage-point difference reflects the different revenue bases used for reported and comparable growth.

What was Emami's comparable domestic growth in Q2FY27?

Emami's comparable domestic growth was 32% by value in Q2FY27, compared with 49% on a reported-value basis. Emami defines its like-for-like calculation as including Axiom Ayurveda and IncNut Digital revenues in the corresponding previous-year period, so the year-on-year comparison includes these businesses in both periods.

Volume growth followed the same pattern in Q2FY27: reported domestic volume growth was 43%, while like-for-like volume growth was 26%. The 17-percentage-point gap in both value growth and volume growth separates expansion in the reported business base from growth calculated after adding the two businesses to the prior-year base.

At the consolidated level, revenue from operations rose 36% on a reported basis in Q2FY27 and 24% on a like-for-like basis. International business revenue declined 2% during the quarter, while domestic business reported 49% growth.

Which Emami businesses accounted for Q2FY27 domestic sales?

Emami's health care segment was its largest domestic sales contributor in Q2FY27 at Rs 284 crore, or 31% of domestic business, while Strategic Investments grew fastest at 73%. The presentation identifies The Man Company, Brillare, Axiom and IncNut Digital as key businesses in Strategic Investments, the segment linked to the comparable-base adjustment.

The Rs 239 crore Strategic Investments segment represented 26% of domestic business in Q2FY27, compared with health care's 31%, hair and scalp care's about 22%, and skin care's 21%. Its 73% reported growth exceeded skin care's 31%, hair and scalp care's 30% and health care's 11%, although the presentation applies its Axiom Ayurveda and IncNut Digital prior-year comparison note to the segment.

Skin Care generated Rs 191 crore in Q2FY27 and grew 31%, with BoroPlus growing in the near twenties, according to Emami. Emami launched the FromMaa baby-care range under BoroPlus, including lotion, cream, shampoo, soap, oil, powder and diaper-rash cream, while talc and prickly-heat powder sales more than doubled in the quarter.

How did Emami's first-half comparable growth compare with Q2FY27?

Emami's domestic revenue grew 21% on a like-for-like basis in H1FY27, below the 32% comparable growth reported for Q2FY27. Reported domestic growth was 33% for H1FY27, versus 49% in Q2FY27, so both reported and comparable growth rates were higher in the second quarter than in the six-month period.

For H1FY27, domestic reported volume growth was 28% and like-for-like volume growth was 17%, compared with respective Q2FY27 rates of 43% and 26%. Consolidated revenue from operations rose 25% on a reported basis and 16% like-for-like in H1FY27, while international business declined 7%, a larger fall than the 2% decline in Q2FY27.

The H1FY27 segment mix also differed from the quarterly mix. Hair and scalp care recorded Rs 465 crore, or 26% of domestic business, and health care generated Rs 516 crore, or 28%; Strategic Investments supplied Rs 398 crore and 22%, compared with its 26% contribution in Q2FY27.

What did Emami report on margins, profits and distribution?

Emami reported Q2FY27 earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 222 crore, up 25%, with a 20.4% margin despite cost of goods sold, or COGS, being 34.2% and 520 basis points higher year on year. Profit before tax, or PBT, rose 29% to Rs 194 crore, producing a 17.8% margin.

For H1FY27, EBITDA was Rs 449 crore, up 14%, with a 21.1% margin, while PBT reached Rs 388 crore, up 15%, with an 18.3% margin. Profit after tax was Rs 144 crore in Q2FY27, down 3%, which management attributed largely to the normalisation of the effective tax rate following the phase-out of fiscal benefits.

Organised channels accounted for 37% of domestic business in Q2FY27, and quick commerce made up about 15% of total digital sales. Management also cited Project SETU and SalesCode.AI as initiatives intended to improve planning, sales execution and decision-making, alongside pricing actions and productivity efforts across procurement, manufacturing, supply chain and revenue management.

Conclusion

Emami's 49% reported domestic growth in Q2FY27 captures the current business base, while the 32% like-for-like figure adjusts the prior-year comparison for Axiom Ayurveda and IncNut Digital. The distinction matters because Strategic Investments contributed 26% of domestic business and reported 73% growth, while health care, skin care, and hair and scalp care grew between 11% and 31%.

The next results will show whether Q2FY27's 26% like-for-like volume growth is sustained as COGS remains 520 basis points higher year on year. Management said it expects international growth to strengthen progressively in coming quarters as secondary sales improve and supply conditions stabilise, after reported international revenue fell 2% in Q2FY27.