Q2 2026 Emami Ltd Earnings Call Transcript
Key Points
- The reduction in GST rates across key FMCG categories is structurally positive for Emami Ltd (BOM:531162), benefiting 93% of their portfolio.
- Non-GST impacted categories showed encouraging growth, with Medico range up by 8%, Zandu cough syrup by 43%, Honey by 36%, and Zandu Care by 17%.
- Strategic investment portfolios rebounded with a 16% year-on-year growth and 36% sequential growth.
- The international business delivered a steady 8% growth despite macro and geopolitical headwinds.
- Gross margins remained stable at 71%, indicating strong cost discipline and input price stability.
- Consolidated revenues declined by 10% this quarter, led by a 15% decline in the domestic business.
- Temporary trade disruptions due to GST rate changes led to deferred purchases and inventory liquidation, impacting sales.
- The summer portfolio faced challenges due to heavy rains, significantly impacting category demand.
- EBITDA declined by 29% and PAT by 30%, reflecting the temporary impact of a lower top line.
- Volume decline in the domestic business was roughly around 16%, attributed to multiple factors including GST disruptions.
Ladies and gentlemen, good day, and welcome to the Emami Limited Q2 FY26 Earnings Conference Call hosted by IIFL Capital Services Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Percy Panthaki from IIFL Capital Services Limited. Thank you, and over to you, sir.
Hi, everyone. Good evening. It's our pleasure to hold the 2Q FY26 conference for Emami. On call with us, we have Mr. Mohan Goenka, full-time Director and Vice Chairman; Mr. Vivek Dhir, CEO, International Business; Mr. Gul Raj Bhatia, President, Healthcare; Mr. Manish Gupta, President, Sales; Mr. Giriraj Bagri, Chief Growth Officer; and Mr. Rajesh Sharma, President of Finance and IR. I'll now hand over the call to Mr. Goenka, who will take you through the. Over to you, sir.
Thank you, Percy. A very good afternoon, ladies and gentlemen. Thank you for joining us today for
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