Q4 2026 Emami Ltd Earnings Call Transcript
Key Points
- Emami Ltd (BOM:531162) reported a strong double-digit growth of 11% in its domestic business excluding the summer portfolio, indicating resilience in its core brand equity.
- The company successfully reduced its receivables by over INR100 crores, improving its working capital cycle by 10 days.
- Strategic investments showed impressive growth, with a 34% increase, and Quick Commerce posted an outstanding 70% growth.
- Gross margins expanded to 68.4%, an improvement of 250 basis points over the previous year, reflecting rigorous cost discipline and pricing actions.
- Emami Ltd (BOM:531162) remains debt-free with a healthy balance sheet, positioning it well for sustained growth in FY27 and beyond.
- The summer portfolio was a significant drag, declining by 22%, with talcum powders alone declining by 40%.
- Consolidated revenues for Q4 declined by 4% over the previous year, primarily due to weak summer performance.
- International business declined by 5% due to geopolitical disruptions in the Middle East, affecting supply chains and increasing freight costs.
- EBITDA for the quarter declined by 15% due to operating deleverage, despite increased advertising and promotional spend.
- Profit after tax for the quarter stood at INR143 crores, a decline of 12%, and for the full year FY26, revenues declined by 1%.
Ladies and gentlemen, good day, and welcome to the Emami Limited Q4 FY26 earnings conference call hosted by IIFL Capital Services. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Percy Panthaki from IIFL Capital. Thank you, and over to you, sir.
Hi. Good afternoon, everyone. It is my pleasure to host the management of Emami for the Q4 FY26 results con call. I have with me from the management, Mr. Mohan Goenka, Whole Time Director and Vice Chairman; Mr. Vivek Dhir, CEO International Business; Mr. Dhruv Aggarwal, Chief Growth Officer; Mr. Gul Raj Bhatia, President Healthcare, Mr. Manish Gupta, President, Sales; and Mr. Rajesh Sharma, President, Finance and IR.
I'll hand over the call to Mr. Goenka for his initial remarks, and later, we will open up for Q&A. Over to you, sir.
Thank you, Percy. A very good afternoon,
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