Emami strategic investments hit 26% after 73% Q2 growth

Emami Limited’s strategic-investments portfolio contributed 26% of domestic business in Q2FY27 after recording Rs 239 crore in net sales and 73% year-on-year like-to-like growth. The portfolio, comprising The Man Company, Brillare, Axiom and IncNut Digital, was the fastest-growing category shown in Emami’s Q2FY27 business-performance disclosure.

What share of domestic business did strategic investments represent in Q2FY27?

Strategic investments represented 26% of Emami’s domestic business in Q2FY27, making it the second-largest disclosed domestic category by contribution after Health Care at 31%. The portfolio’s Rs 239 crore of net sales exceeded Hair and Scalp Care’s Rs 194 crore and Skin Care’s Rs 191 crore, while remaining below Health Care’s Rs 284 crore.

The Q2FY27 sales mix differed from the H1FY27 mix shown by Emami. Strategic investments accounted for 22% of domestic business and generated Rs 398 crore in H1FY27, while Health Care contributed 28%, Hair and Scalp Care 26%, and Skin Care 24%. The 26% Q2FY27 contribution was therefore 4 percentage points above the 22% H1FY27 contribution.

The comparison is limited by the different periods: H1FY27 includes both Q1FY27 and Q2FY27, whereas the Q2FY27 data covers one quarter. Still, the presentation shows that strategic investments moved ahead of both Hair and Scalp Care and Skin Care in Q2FY27 sales, despite being behind each of those categories on H1FY27 sales of Rs 465 crore and Rs 437 crore, respectively.

Which brands are included in Emami’s strategic-investments portfolio?

Emami lists The Man Company, Brillare, Axiom and IncNut Digital as the key brands in strategic investments in both its Q2FY27 and H1FY27 business-performance tables. The company presents this portfolio separately from Hair and Scalp Care, Skin Care and Health Care, without disclosing individual sales or growth figures for the four named businesses.

The 73% Q2FY27 growth figure is calculated on a like-to-like basis. Emami states that its like-to-like comparison considers the previous year’s revenue in the corresponding period for Axiom Ayurveda and IncNut Digital. This definition also applies to the portfolio’s 68% H1FY27 year-on-year like-to-like growth.

That reporting basis distinguishes the portfolio’s disclosed growth rate from domestic business’s reported-value growth. Emami reported domestic-business growth of 49% in Q2FY27 on a reported-value basis and 32% on a like-to-like basis, with volume growth of 43% and 26%, respectively.

How did strategic investments compare with Emami’s other businesses in Q2FY27?

Strategic investments grew faster than every other category disclosed by Emami in Q2FY27, at 73% year-on-year on a like-to-like basis. Skin Care grew 31%, Hair and Scalp Care 30%, and Health Care 11%, while International Business declined 2% in the quarter.

The sales gap between strategic investments and Skin Care changed between the two disclosed periods. In H1FY27, strategic investments recorded Rs 398 crore, Rs 39 crore below Skin Care’s Rs 437 crore; in Q2FY27, its Rs 239 crore was Rs 48 crore above Skin Care’s Rs 191 crore. This reflects the different quarterly and half-year positions reported by Emami, not a separate brand-level sales disclosure.

Strategic investments also had the highest stated growth rate in H1FY27. Its 68% like-to-like growth was above Hair and Scalp Care’s 18%, Skin Care’s 14% and Health Care’s 7%, while International Business declined 7%. The portfolio’s H1FY27 contribution of 22% was nevertheless lower than Health Care’s 28%, Hair and Scalp Care’s 26% and Skin Care’s 24%.

How did portfolio growth fit Emami’s wider Q2FY27 performance?

Strategic investments’ 73% like-to-like growth exceeded Emami’s 32% like-to-like domestic-business growth and its 24% like-to-like consolidated revenue growth in Q2FY27. Consolidated revenue from operations rose 36% on a reported basis, while International Business declined 2%, compared with the domestic business’s 49% reported-value growth.

For H1FY27, the same contrast was evident at a lower company-wide growth rate. Strategic investments grew 68% like-to-like, compared with 21% like-to-like domestic-business growth and 16% like-to-like consolidated revenue growth. International Business declined 7% in H1FY27, while domestic business increased 33% on a reported-value basis.

Emami reported cost of goods sold at 34.2% in Q2FY27, 520 basis points higher year on year. The company also reported a 20.4% EBIDTA margin, using its stated earnings measure, and a 17.8% profit-before-tax margin; the presentation does not assign these margins or costs to strategic investments.

What operating actions did Emami disclose for later periods?

Emami disclosed product and marketing activity in its other domestic categories, rather than a separate operating plan for The Man Company, Brillare, Axiom or IncNut Digital. In Hair and Scalp Care, Kesh King launched the Scalp First range across modern trade and e-commerce, covering six products for oily itchy, dry itchy and dry flaky scalp needs.

In Skin Care, BoroPlus launched the FromMaa Baby Care range, which includes lotion, cream, shampoo, soap, oil, powder and diaper-rash cream. Smart and Handsome was restaged in September 2026 with a focus on sunscreen and shower-gel new-product developments, while talc and prickly heat powder sales more than doubled in Q2FY27.

Health Care grew 11% in Q2FY27, compared with 73% for strategic investments. Emami said Pain Management grew in the teens and the Zandu Healthcare range posted high-single-digit growth, while its over-the-counter range delivered double-digit growth and its medico range recorded single-digit growth.

Conclusion

Emami’s Q2FY27 disclosure positions strategic investments as a material domestic portfolio, with Rs 239 crore of sales, a 26% domestic-business contribution and 73% like-to-like growth. It remained smaller than Health Care at Rs 284 crore, but it was larger than Hair and Scalp Care at Rs 194 crore and Skin Care at Rs 191 crore during the quarter.

The next update will show whether strategic investments sustain growth near the 73% Q2FY27 rate or closer to the 68% H1FY27 rate, and whether its domestic contribution remains above the 22% H1FY27 level. Emami’s disclosed actions to track include the Kesh King Scalp First launch across modern trade and e-commerce, the FromMaa Baby Care launch, and the September 2026 Smart and Handsome restage.