Emami review qualified over unreviewed subsidiary results

Emami Limited’s consolidated limited review for the quarter ended September 30, 2026 was qualified because one subsidiary group, including two subsidiaries, reported unaudited and auditor-unreviewed revenue of Rs 83.57 crore and profit after tax of Rs 9.41 crore. The auditor said it could not comment on the possible financial impact had those results been reviewed.

Why was Emami’s consolidated review qualified?

Emami’s consolidated review was qualified because its September 2026 results included interim financial information from one subsidiary and its two subsidiaries that had not been reviewed by any auditor. S.R. Batliboi & Co. LLP said its conclusion on this part of the consolidated statement relied solely on information approved and furnished by management.

The unreviewed group reported total comprehensive income of Rs 9.46 crore for the quarter ended September 30, 2026, alongside revenue of Rs 83.57 crore and profit after tax of Rs 9.41 crore. The auditor said it was unable to comment on the financial impact, if any, on the consolidated statement if these underlying figures had been reviewed.

The review was conducted under Standard on Review Engagements 2410, which covers interim financial information reviewed by an entity’s independent auditor. The report states that a review involves inquiries and analytical procedures, provides moderate assurance and is substantially narrower in scope than an audit.

What unreviewed amounts caused Emami’s qualification?

The qualification related to one subsidiary group with two further subsidiaries that contributed Rs 83.57 crore of revenue in the September 2026 quarter. The filing does not identify the particular subsidiary group in the qualification paragraph, although it lists Emami’s consolidated subsidiaries and associates elsewhere in the review report.

The unreviewed group’s revenue was included in Emami’s consolidated revenue from operations of Rs 1,087.65 crore for the quarter. Consolidated profit after tax was Rs 145.50 crore, of which Rs 144.16 crore was attributable to equity holders of the parent and Rs 1.34 crore to non-controlling interests.

The report separately included two associates whose interim financial information was not reviewed by auditors. Their combined share of net loss was Rs 34 lakh for the September 2026 quarter, and management told the auditor these amounts were not material to the group; the auditor did not modify its conclusion for that associate information.

How does this compare with Emami’s June 2026 review?

Emami’s review report for the quarter ended June 30, 2026 was also qualified in connection with certain unreviewed components. The September 2026 filing does not disclose the amounts involved in the June qualification or say whether those components were the same as the one subsidiary group identified in the September review.

For September 2026, other material subsidiary components were supported by independent auditors’ review reports. One subsidiary group with six subsidiaries reported Rs 115.40 crore of revenue and Rs 11.30 crore of profit after tax, while three subsidiaries together reported Rs 84.14 crore of revenue and Rs 5.63 crore of profit after tax.

Subject to the possible effects of the unreviewed subsidiary information, the auditor said nothing had come to its attention indicating that Emami’s statement did not make disclosures required by Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015, or contained a material misstatement.

What did Emami report for the September 2026 quarter?

Emami reported consolidated revenue from operations of Rs 1,087.65 crore for the quarter ended September 30, 2026, compared with Rs 798.51 crore a year earlier and Rs 1,039.21 crore in the preceding June 2026 quarter. Total income reached Rs 1,110.60 crore, including other income of Rs 22.95 crore.

Consolidated profit after tax was Rs 145.50 crore, compared with Rs 148.35 crore in the September 2025 quarter and Rs 138.94 crore in June 2026. Total comprehensive income rose to Rs 171.25 crore from Rs 145.62 crore a year earlier, while basic and diluted earnings per share were Rs 3.30, compared with Rs 3.40.

For the half year ended September 30, 2026, revenue from operations rose to Rs 2,126.86 crore from Rs 1,702.60 crore in the corresponding prior-year period. Profit after tax declined to Rs 284.44 crore from Rs 312.61 crore, while total tax expense increased to Rs 103.89 crore from Rs 24.34 crore.

Emami’s consolidated total assets stood at Rs 4,484.93 crore at September 30, 2026, compared with Rs 3,836.44 crore at March 31, 2026. The half-year cash-flow statement recorded Rs 359.23 crore paid towards a business combination, net of cash and cash equivalents acquired, and reported goodwill of Rs 262.61 crore and other intangible assets of Rs 664.62 crore at September 30.

What else did Emami announce with its results?

Emami’s board approved a first interim dividend of Rs 5 per fully paid equity share with a face value of rupees 1 for financial year 2026-27. The 500% dividend applies to 42.92 crore equity shares and is scheduled for payment on or before December 4, 2026.

The record date for the dividend is November 13, 2026. At its November 5, 2026 meeting, the board also appointed Debendra Banthiya as company secretary and compliance officer with effect from that date, and as nodal officer under the Investor Education and Protection Fund Authority rules.

Conclusion

The qualification identifies a defined limitation in Emami’s September 2026 consolidated review rather than a finding that its reported results were misstated. The unreviewed subsidiary group represented Rs 83.57 crore of quarterly revenue and Rs 9.41 crore of profit after tax, while the wider group reported Rs 1,087.65 crore of revenue from operations and Rs 145.50 crore of profit after tax.

The next disclosed shareholder dates are the November 13, 2026 dividend record date and payment on or before December 4, 2026. For subsequent financial reporting, the unresolved matter is whether the auditor continues to qualify Emami’s consolidated reviews over unreviewed subsidiary information, after noting a similar qualification for the June 30, 2026 quarter.