Emami Limited Q3 FY26 Earnings Call Summary

Summary

Emami Limited - Q3 FY26 Earnings Call Summary Wednesday, February 04, 2026 4:00 PM

Event Participants

Executives 6 Giriraj Bagri, Gul Raj Bhatia, Manish Gupta, Mohan Goenka, Rajesh Sharma, Vivek Dhir

Analysts 8 Abneesh Roy, Ajay Thakur, Amnish Aggarwal, Harit Kapoor, Naveen Trivedi, Nitin Gupta, Percy Panthaki, Prakash Kapadia

Financials & KPIs

Geographic & Segment Commentary

Domestic Business: Revenue grew 11% led by BoroPlus (+16%), Kesh King (+10%), and Pain Management (+8%). The segment saw a sequential recovery following the GST 2.0 transition, with a notable shift toward organized channels (Modern Trade and E-commerce) now contributing 32% of YTD sales.

International Business: Sales grew 9% YoY with double-digit growth in the SAARC and CIS regions. While brands like 7 Oils in One and Creme 21 performed well, the segment faced headwinds in specific MENA markets (Iraq) and parts of North Africa.

Strategic Subsidiaries: The Man Company and Brillare together delivered a robust 31% growth. Performance was driven by digital-first innovations, including Rosemary Oil Shots and perfumes, with strong traction in Quick Commerce.

Company-Specific & Strategic Commentary

Omnichannel & Digital Focus: Digital media spends now account for 50% of total marketing expenditure. Quick Commerce sales doubled during the quarter, now contributing 20% to the total e-commerce business.

GST 2.0 Impact: Approximately 88% of the portfolio shifted to the 5% GST slab, resulting in an effective 8% price reduction for consumers, largely passed on via grammage increases in 20% of the portfolio (LUPs).

Supply Chain Transformation: The company engaged KPMG to drive a “future-ready” supply chain transformation focused on optimizing omnichannel operations and improving fulfillment.

Rural Thrust: Management is pivoting focus toward rural markets by deploying additional manpower and focusing on shampoo sachets and small SKUs (LUPs) to capitalize on lower GST rates.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Revenue Trajectory

• Question: What are the growth drivers for FY27 given the lower GST base? (Prakash Kapadia)
• Answer: Every brand is targeted for double-digit growth. Lower GST (5%) and increased digital targeting of youth are key. Rural growth is expected to move from 4-5% to 8-9% (Mohan Goenka).

GST & Pricing

• Question: How much grammage was increased due to GST cuts? (Harit Kapoor)
• Answer: Grammage was increased across ~20% of the portfolio (LUPs) to pass on the 10-12% benefit. The full impact will reflect in Q4 as Navratna was not fully factored in Q3 (Mohan Goenka).

Hair Oil Category

• Question: What is driving the revival in Kesh King and 7 Oils in One? (Harit Kapoor)
• Answer: A brand refresh led by BCG was implemented in late Q2. The relaunch involves new communication and addressing consumer concerns, leading to 10% growth in Kesh King (Manish Gupta).

Distribution & Channels

• Question: Are new-age channels more profitable than General Trade (GT)? (Abneesh Roy)
• Answer: For Emami, GT remains more profitable. E-commerce has the lowest profitability due to heavy promotional spends (Mohan Goenka).

International Market Pressures

• Question: What markets are pulling down international growth? (Ajay Thakur)
• Answer: While SAARC and CIS are strong, Iraq and certain North African markets have seen lukewarm response or decline (Vivek Dhir).

Key Takeaway

Emami Limited delivered a strong Q3 FY26 with 10% revenue growth and 15% PAT growth, supported by a harsh winter that benefited the BoroPlus and healthcare portfolios. Domestic volume growth improved to 9% as the company successfully transitioned through GST 2.0 disruptions, passing on an 8% price benefit to consumers primarily through grammage increases. Strategically, the company is pivoting toward a digital-first approach, with 50% of media spends now digital and Quick Commerce doubling its contribution. While the summer portfolio (Navratna, Dermicool) remains weather-dependent, management expressed confidence in sustained double-digit growth for FY27, underpinned by a recovery in rural demand and a structural reduction in the effective tax rate to approximately 20%. Performance in Bangladesh and certain MENA markets remains a watch point for the international segment.