Emami Limited Earnings Summary — Q4 FY2026
Emami Reports Soft Final Quarter with Margin Compression Amid Revenue Volatility
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 12.3% sequentially in Q1 FY2027.
- Revenue of ₹1,039 Cr is 14.9% higher year-on-year.
- Revenue has compounded at 7.1% annualised over the last 10 quarters.
- Net profit of ₹137 Cr is 16.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -3.5% annualised across the period.
- Operating margin stands at 21.6% in Q1 FY2027.
- Operating margin compressed by 185 bps year-on-year.
- Over the last two years operating margin has contracted by 205 bps.
- PBT margin is 18.7%.
- Expenses grew 17.7% against revenue growth of 14.9%.
- Operating profit of ₹225 Cr is 5.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 55/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 1,039 | 925 | 1,152 | 799 | 904 | 963 | 1,049 | 891 | 906 | 891 |
| Expenses | Stable | 815 | 739 | 768 | 622 | 692 | 744 | 715 | 645 | 692 | 682 |
| Operating Profit | Volatile | 225 | 186 | 384 | 177 | 212 | 219 | 334 | 246 | 214 | 209 |
| Operating Margin | Stable | 21.6% | 20.1% | 33.4% | 22.1% | 23.5% | 22.7% | 31.8% | 27.6% | 23.7% | 23.5% |
| Other Income | Volatile | 19 | 23 | 9 | 21 | 22 | 21 | 15 | 22 | 10 | 11 |
| Interest | Accelerating | 6 | 3 | 3 | 3 | 2 | 3 | 2 | 2 | 2 | 3 |
| Depreciation | Stable | 43 | 42 | 45 | 45 | 45 | 44 | 46 | 45 | 44 | 48 |
| Profit Before Tax | Volatile | 195 | 164 | 345 | 150 | 187 | 194 | 301 | 220 | 178 | 169 |
| Tax | Volatile | 56 | 21 | 26 | 2 | 23 | 32 | 22 | 9 | 28 | 22 |
| Net Profit | Volatile | 137 | 143 | 319 | 148 | 164 | 162 | 279 | 213 | 153 | 149 |
| Net Margin | Stable | 13.2% | 15.5% | 27.7% | 18.6% | 18.2% | 16.8% | 26.6% | 23.9% | 16.9% | 16.7% |
Key Takeaways
- Quarterly revenue saw a decline of 3.95% YoY and a sharp 19.7% sequential drop, reflecting high seasonal volatility.
- Operating margins compressed to 20%, the lowest level in multiple years, down from 33% in the previous quarter.
- Net profit fell to ₹143 crore, down from ₹162 crore in the same period last year despite higher other income.
- The balance sheet remains lean, though borrowings nearly doubled YoY from ₹90 Cr to ₹162 Cr.
- Company continues to maintain a structurally low tax rate, recorded at 13% for the current quarter.
- Other income of ₹23 Cr provided a slight buffer to the bottom line amidst declining operational efficiency.
- Depreciation costs remained stable at ₹42 Cr, assisting in maintaining cash flow despite profit dips.
Management Guidance
Management is focusing on premiumization and digitalization to counter slow rural growth and is transitioning to professional leadership.
Sentiment Shift
Deteriorating
Performance in Q4 FY2026 shows a notable decline in both revenue and profit margins compared to both the prior year and the preceding quarter.
Outlook
The company remains a high-quality compounder with dominant market shares, but faces near-term headwind from stagnant top-line growth and input cost pressures impacting core margins.
From the Annual Report (Key Quotes)
“Management is currently in a transition phase, moving from the founder duo to professional CEOs.”
“The strategic vision now focuses on 'premiumization' and 'digitalization' to counter slow rural growth.”
“Company has transitioned from a high-growth brand aggregator to a steady-state cash generator.”
Official Quarterly Documents
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This summary is AI-generated from Emami Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.