EMAMILTD - Emami

📊 NSE: EMAMILTD 🏢 Personal Care - Indian 📅 Last Updated: 12/13/2025 21:49

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 6% YoY to INR 3,809.2 Cr. Standalone operating income increased 6.9% to INR 3,123.55 Cr. Strategic investments in brands like Brillare and TMC are expected to deliver strong double-digit growth in the second half of the year.

Geographic Revenue Split

International business contributes approximately 17.47% of total revenue (INR 617 Cr in FY24), growing 4% in INR terms and 5% in constant currency during FY25. The domestic business accounts for the remaining ~82.5%, with e-commerce now representing 12% of domestic sales.

Profitability Margins

Gross margins expanded by 100 basis points to 68.6% due to benign raw material prices and judicious price increases. Profit After Tax (PAT) grew 11% to INR 807 Cr, representing a net margin of approximately 21.2%.

EBITDA Margin

EBITDA grew by 8% to INR 1,025 Cr, with EBITDA margins improving by 40 basis points to 26.9% YoY. This improvement was driven by better cost management and softening input costs, partially offset by higher-than-average ad spends.

Capital Expenditure

The company has planned inorganic growth expenditures exceeding INR 200 Cr, intended to be funded through strong internal accruals and existing liquidity buffers rather than debt.

Credit Rating & Borrowing

Maintains a robust capital structure with an overall gearing of 0.04x. Working capital limit utilization is low at less than 10%. The company has no long-term debt other than lease liabilities, supporting its high creditworthiness.

⚙️ Operational Drivers

Raw Materials

Key raw materials include mentha oil, vegetable oils, and liquid paraffin (commodities for healthcare and personal care). While specific % per material is not disclosed, total raw material costs allowed for a 100 bps gross margin expansion to 68.6%.

Import Sources

Not specifically disclosed in available documents, though international operations in Bangladesh are noted as a significant business hub.

Capacity Expansion

The company is focusing on expanding its distribution network and leveraging strategic acquisitions like Brillare and TMC to increase market reach, though specific MTPA capacity figures are not provided.

Raw Material Costs

Raw material costs were described as 'benign' and 'well under control' in FY25, contributing to a gross margin of 68.6%. Management expects continued margin expansion in Q3 FY26 as input cost pressure remains absent.

Manufacturing Efficiency

Efficiency is tracked through sustainability metrics, achieving 100% compliance with Extended Producer Responsibility (EPR) by recycling 10,365 metric tons of plastic waste.

Logistics & Distribution

Distribution is a key focus for growth; the company is leveraging quick commerce, modern trade, and D2C websites, which have delivered strong growth recently.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be driven by a 'volume-led' strategy, expanding the distribution network, and increasing investments in digital-first brands (Brillare, TMC). The company is also targeting inorganic growth with a INR 200 Cr+ budget and leveraging quick commerce channels which are currently seeing momentum.

Products & Services

Antiseptic creams, cooling oils, pain balms, men's grooming products, healthcare supplements, and premium skin/hair care products.

Brand Portfolio

Zandu, Navratna, Boroplus, Fair and Handsome, Kesh King, Mentho Plus, 7 Oils in One, Brillare, and The Man Company (TMC).

New Products/Services

Strategic investments in Brillare and TMC are scaling rapidly; e-commerce now contributes 12% to domestic business, up from lower single digits in previous years.

Market Expansion

Focusing on international markets (70+ countries) and deepening rural penetration in India, which is expected to see demand improvement.

Market Share & Ranking

Holds leadership positions in niche categories like cooling oils (Navratna) and antiseptic creams (Boroplus).

Strategic Alliances

Recent acquisitions and strategic stakes in Brillare and The Man Company to capture the premium and digital-first consumer segments.

🌍 External Factors

Industry Trends

The FMCG industry is shifting toward quick commerce and D2C channels. Emami is positioning itself by increasing influencer-led marketing and digital-first brand investments to capture the 12% and growing e-commerce market share.

Competitive Landscape

Faces intense competition from both large multinational FMCG players and new-age D2C brands in the personal care and healthcare segments.

Competitive Moat

Moat is built on strong brand equity in 'problem-solution' categories (e.g., Zandu for healthcare, Boroplus for skin protection). This is sustainable due to high brand recall and a distribution network reaching millions of outlets.

Macro Economic Sensitivity

Highly sensitive to rural inflation and consumer spending power; management expects rural demand to improve with softening inflation.

Consumer Behavior

Shift toward premiumization and digital purchasing; responded by growing e-commerce contribution to 12% of domestic revenue.

Geopolitical Risks

Political instability in Bangladesh created temporary disruptions in July and August 2024, impacting the international business growth rate (limited to 4%).

⚖️ Regulatory & Governance

Industry Regulations

Compliant with ISO 9001:2015 (Quality) and ISO 31000:2018 (Risk Management) standards. Subject to FMCG manufacturing standards and plastic waste management rules.

Environmental Compliance

100% compliant with Extended Producer Responsibility (EPR) regulations; recycled 10,365 metric tons of plastic waste in FY25.

Taxation Policy Impact

Effective tax provision for FY25 included INR 17,872 lacs in current tax, offset by MAT credit entitlements of INR 8,391 lacs.

Legal Contingencies

A fine was imposed by BSE Ltd for a one-day delay in submitting the statement of impact of audit qualification for FY24 (submitted May 31, 2024, instead of May 30). The fine was paid on July 12, 2024.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and geopolitical unrest in neighboring trade partners (Bangladesh) are the primary risks, potentially impacting margins by 100-200 bps if unmanaged.

Geographic Concentration Risk

Domestic India accounts for ~83% of revenue. Bangladesh is a significant portion of the 17% international revenue, representing a specific geographic risk.