Emami's Q2 profit dips 2% despite strong 36% revenue surge

Emami Ltd reported a marginal decline in net profit for the second quarter of fiscal 2026-27, as India's homegrown consumer goods manufacturer grappled with sustained cost pressures and changes in its tax position. Profit after tax for the quarter ended September 30 stood at ₹145.50 crore, representing a 1.92 per cent decrease from ₹148.35 crore in the corresponding quarter last year, according to regulatory filings from the Kolkata-based company.

The company's operational performance, however, painted a more robust picture. Revenue from operations surged 36.2 per cent year-on-year to ₹1,087.65 crore during the quarter. Earnings before interest, tax, depreciation and amortisation grew 25 per cent to ₹222 crore, while profit before tax climbed 29 per cent to ₹194 crore, reflecting stronger underlying business momentum.

Emami attributed the divergence between operational growth and bottom-line performance to two key factors: persistently elevated input costs that continued to weigh on margins throughout the quarter, and the normalisation of its effective tax rate following the phase-out of earlier fiscal benefits. Total expenses for the period increased 39.57 per cent to ₹865.33 crore, outpacing revenue growth and underlining the cost pressures facing the sector.

The company's domestic business emerged as a bright spot, expanding 49 per cent during the quarter, indicating strong market demand for its portfolio of personal care and healthcare products across India.