Q1 2027 Emami Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 15% to INR1,039 crore, with domestic business up 20% (12% like-to-like) and volume growth of 8%.
- Strategic Investment portfolio delivered impressive 61% like-to-like growth, now contributing 18% of domestic business, with strong momentum from The Man Company and Brillare.
- Hair and Scalp Care category grew 11%, driven by double-digit growth in Navratna Cool Oil and robust performance from 7 Oils in One.
- Organized channels grew 19% like-to-like, now contributing 32% of domestic business, with quick commerce making up 35% of e-commerce sales.
- Management expects to offset input cost inflation through pricing actions and productivity initiatives, with confidence in margin recovery in coming quarters.
- International business decline is expected to reverse, with significant growth anticipated in Q3 and Q4 FY27 due to realigned strategies and supply chain fixes.
- Gross margin moderated due to inflationary pressures from higher crude oil prices and packaging costs, with input costs up 360 basis points (200 bps from West Asia conflict).
- International business declined 12% due to West Asia conflict disruptions, constraining order execution and supply from India.
- Profit after tax fell 16% to INR137 crore due to normalization of effective tax rate to 25-26%.
- Skin Care category growth was muted at 3%, with talc portfolio only high single-digit growth and BoroPlus low single-digit growth.
- Strategic investments are EBITDA neutral, with lower margins compared to core business, and management expects only high single-digit EBITDA margins in three years.
- Kesh King growth slowed to mid-single-digit, below expectations, despite a low base, though management expects double-digit growth by year-end.
Ladies and gentlemen, good day, and welcome to Emami Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Percy Panthaki from IIFL. Thank you, and over to you, sir.
Hi. Good evening, everyone. I have the pleasure to host the management of Emami Limited for their quarterly conference call. On the line with me, I have Mr. Mohan Goenka, Whole Time Director and Vice Chairman; Mr. Vivek Dhir, CEO, International Business; Mr. Gul Bhatia, President, Healthcare; Mr. Manish Gupta, President, Sales; Mr. Dhruv Aggarwal, Chief Growth Officer; and Mr. Rajesh Sharma, President, Finance and IR.
I'll hand over the call to Mr. Mohan Goenka for his initial comments, and then we'll open up for Q&A. Over to you, sir.
Good afternoon, ladies and gentlemen. Thank you for joining us today for Emami
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