Emami reports Q2 FY26 revenue decline due to GST impact; declares ₹4 interim dividend, confident on H2 growth
Emami's Q2 FY26 revenue fell 10% to ₹799 crore due to temporary GST disruptions. Interim dividend of ₹4 per share declared. Management is confident of strong H2 growth.
The announcement has a high impact due to the significant decline in Q2 revenues and profits, even if temporary. The major GST policy changes affecting 88% of the core domestic portfolio, coupled with strategic product relaunches and an interim dividend declaration, are all material events that could influence investor perception and future performance.
While Q2 financial results show a significant decline in revenue and profit, attributed to temporary GST policy implementation disruptions and adverse weather, the company's management expresses strong confidence in a recovery and robust growth for the second half of the year, citing structural benefits of GST and rebounding trade sentiment. The declaration of an interim dividend also provides a positive signal.
* Emami Limited announced its unaudited financial results (Standalone & Consolidated) for the quarter and half-year ended 30th September 2025, along with an Investor Presentation. * The company’s Board of Directors met on 10th November 2025 to consider these results. * A significant policy development was the Government's decision to reduce GST rates across key FMCG categories, benefiting 88% of Emami's core domestic portfolio, with 93% now falling under the 5% GST rate. * This GST reform, while structurally positive for the long term, caused temporary trade disruptions in September 2025, leading to deferred purchases and liquidation of higher-cost inventory. * Consolidated revenues for Q2 FY26 stood at ₹799 crore, a decline of 10% year-on-year. However, the non-GST impacted portfolio grew by 10% during the quarter. * Gross Margins remained stable at 71.0%. * EBITDA for the quarter was ₹179 crore, declining by 29%, and Profit After Tax (PAT) was ₹148 crore, declining by 30%, reflecting the temporary impact of lower topline. * The Board of Directors declared an interim dividend of 400%, amounting to ₹4 per share for FY26. * Strategic initiatives included the expansion of Smart & Handsome into new male grooming categories with 12 new SKUs, the relaunch of Kesh King as Kesh King Gold with refreshed packaging and formulation, and the strengthening of the Zanducare portfolio. * The International Business delivered a steady 8% growth despite macro and geopolitical headwinds, with new product launches like the Creme 21 Xtra Bright range. * Mr. Harsha V Agarwal, Vice Chairman and Managing Director, stated confidence in strong growth in coming quarters due to improving market sentiment and a favorable season ahead, emphasizing portfolio strengthening through premiumisation and innovation. * Mr. Mohan Goenka, Vice Chairman and Whole-Time Director, noted October marked a clear turning point with trade sentiment rebounding and deferred winter loading recovering, positioning the company for solid performance in the second half of the year.
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Emami Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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