Business · India Bureau
Emami logs profit dip despite robust 36% revenue growth in Q2
Consumer goods manufacturer Emami reported a 2.8 per cent decline in net profit for the September quarter, even as revenues surged 36.2 per cent on the back of strong domestic market performance. The profitability squeeze came as the company faced the withdrawal of tax incentives at its Assam manufacturing facility.
LSN India ·
Emami Limited's financial performance in the second quarter of FY2026-27 reflected the dual impact of expanding sales and contracting margins. While the company capitalised on robust domestic demand to lift revenues by over a third, bottom-line earnings fell to ₹144 crore, down from ₹148.3 crore in the corresponding period last year.
The revenue expansion of 36.2 per cent signals strong underlying business momentum, driven by improved consumer spending and market penetration across Emami's portfolio of personal care and home products. The quarter saw the company benefit from increased volumes and market share gains in its core segments.
However, the erosion in profitability was primarily attributed to the phase-out of tax concessions previously available at the company's Assam manufacturing unit. These tax benefits, granted under various government incentive schemes, had provided a tailwind to previous quarters' earnings. Their withdrawal increased the effective tax burden on the company's operations.
The results underscore the challenges consumer goods companies face in converting revenue growth into proportional profit expansion amid changing tax policies and input cost pressures. Industry analysts will be watching whether Emami can restore margin expansion through operational efficiency and cost management in subsequent quarters.