According to reports from ET Now, Emami Limited reported mixed results for Q4 FY26, with profit declining 11.7% to ₹143 crore compared to ₹162 crore in Q4 FY25. The company's total income also declined 3.9% to ₹925 crore from ₹963 crore in the same quarter last year. For the full fiscal year FY26, Emami reported consolidated PAT of ₹775.26 crore compared to ₹802.74 crore in FY25, while revenue from operations stood at ₹3,779.51 crore versus ₹3,809.19 crore in FY25. The company's EBITDA declined by 14.7% to ₹187 crore with a 260 basis points decline in EBITDA margin from 22.8% to 20.2%. The latest market data shows Emami trading at ₹413.90, down 3.5% amid broader market weakness in FMCG stocks.
As reported by ET Now, the company's international business declined by 5% during the quarter primarily due to the ongoing conflict in West Asia, which affected shipping routes through the Strait of Hormuz, disrupting supply chains and increasing freight costs. The total expenses of ₹738.4 crore in the quarter under review compared to ₹743.61 crore in the same period a year ago, showing some cost management efforts despite operational challenges. The company appears in a screener of stocks with a PEG ratio greater than the Industry average, indicating potential value concerns among investors.
According to ET Now, Elara Capital maintains a buy rating but cuts the target price to ₹550 from ₹640, citing the company's Q4 consolidated revenue decline of 3.9% YoY due to weak summer season and international business disruptions. Nuvama Research maintains a buy call with a target price of ₹655 versus ₹735, noting that El Niño is likely to help the company's performance. Motilal Oswal maintains a buy call with a target price of ₹525, while cutting FY27 and FY28 EPS estimates by 14.9% and 13.8% respectively. The brokerages remain optimistic about the company's prospects despite the current quarter's challenges, though recent market performance shows Emami trading at ₹413.90, down 3.5%.
As reported by ET Now, despite the weak quarterly performance, there were some positive operational developments. The domestic business excluding summer portfolio grew 11% YoY, indicating strong underlying demand. The gross margin expanded 255 basis points YoY to 68.4%, showing improved cost management. Management expects double-digit growth in Navratna and Dermicool in H1FY27, suggesting recovery prospects. The hair oil franchise has structurally turned around, providing a foundation for future growth. However, the company faces challenges from higher material costs and advertisement expenses that contributed to the profit decline.
