Emami, a prominent player in the fast-moving consumer goods (FMCG) sector, revealed a significant drop in its consolidated net profit for the fourth quarter of the financial year 2026 (Q4 FY26). The company reported an 11.7% year-on-year decline, with net profit amounting to ₹143.18 crore, compared to ₹162.17 crore in Q4 FY25. This downturn was largely driven by adverse seasonal conditions that negatively affected demand for summer-focused products, coupled with geopolitical disruptions in West Asia that hampered overall business operations.
The revenue from operations during the January-March quarter also experienced a decline of 3.94%, amounting to ₹925.1 crore, down from ₹963.05 crore in the previous year. In addition, total expenses saw a marginal decrease of 0.70%, resulting in ₹738.4 crore in expenses for the quarter under review. Furthermore, Emami's EBITDA fell by 2.51%, reaching ₹232 crore compared to ₹266 crore in Q4 FY25, with the EBITDA margin contracting to 25.09% from 27.59%.
- Revenue decline attributed to seasonal challenges — summer product demand weakened due to adverse weather.
- Geopolitical tensions impact operations — disruptions in West Asia affected business performance.
- Non-summer portfolio growth at 11% — despite challenges, core fundamentals remain strong.
In a statement, Harsha V Agarwal, Vice Chairman and Managing Director of Emami, highlighted the influence of external factors on the quarter's performance. He noted that while the company faced temporary headwinds, its domestic business showed resilience, particularly in non-summer product categories. For the entire financial year 2026, Emami reported total revenue of ₹3,780 crore, with a gross margin expansion of 130 basis points to 69.9%, and an overall net profit of ₹775 crore.
Looking forward, Emami remains optimistic about its long-term growth prospects, emphasizing that its core business fundamentals are robust and well-positioned to navigate through these challenging times. The company aims to adapt to changing market conditions while continuing to focus on its strategic growth initiatives.
