Emami's consolidated net profit declined 16.4% to ₹137.35 crore in the quarter ended June 2026, compared to ₹164.26 crore in the corresponding quarter of the previous year. According to reports from Business Standard, the company's consolidated revenue from operations increased 14.95% to ₹1,039.21 crore during the June 2026 quarter, up from ₹913.6 crore in June 2025. The mixed performance reflects significant margin compression due to elevated input costs linked to the West Asia conflict, with the company experiencing what it described as one of the sharpest inflationary phases the sector has faced in recent years.
The company's gross margins contracted by 360 basis points to 65.8% in Q1 FY27, primarily driven by elevated input costs triggered by the West Asia conflict. As reported by Business Standard, input costs rose due to higher crude oil prices and inflation in packaging materials, as well as several other key inputs. Despite these challenges, EBITDA grew 6% to ₹226 crore and profit before tax increased 4% to ₹195 crore, demonstrating the company's operational resilience and focus on cost optimization. The margin pressure was further compounded by mixed summer conditions across markets, with intense heat in south and west India but relatively milder conditions in the north and east.
During the quarter, Emami continued to strengthen its market position through strategic acquisitions. The company completed the purchase of an additional 56% stake in Axiom Ayurveda, taking its holding to 80%, and acquired a 70% stake in IncNut Digital, the parent company of The Man Company, expanding its presence in the fast-growing premium digital personal care market. As reported by Business Standard, the company's strategic investments portfolio now accounts for nearly 18% of domestic business, reinforcing its strategy of building multiple growth engines alongside trusted core brands. The domestic business specifically grew 20%, driving overall revenue growth of 15% despite challenging operating conditions.
Commenting on the performance, Harsha V Agarwal, vice-chairman and managing director, highlighted the strength of the company's brands and execution capabilities despite the challenging environment. As reported by Business Standard, he noted that the company remains well positioned to strengthen profitability while sustaining growth across businesses as input cost pressures begin to ease and the innovation pipeline gains momentum. Mohan Goenka, vice-chairman and whole-time director, emphasized the company's disciplined execution and operational agility that enabled delivery of EBITDA and profit before tax growth despite margin pressures from elevated input costs.
