Emami bets on winter comeback after GST-led slowdown, ETCFO
Kolkata-based FMCG major Emami Limited expects a strong recovery in the second half of FY26, buoyed by improved trade sentiment and a favourable winter season. This comes after the company reported a 10% year-on-year decline in consolidated revenue to ₹799 crore for the September quarter, impacted by temporary trade disruptions following the government’s recent GST rate reduction.
The GST cut — from 12% or 18% to 5% across key FMCG categories — benefited nearly 88% of Emami’s core domestic portfolio, which now enjoys 93% coverage under the lowest GST bracket. The company said it swiftly passed on the benefits to consumers, aligning with its affordability-first strategy.
Vice Chairman and MD Harsha V Agarwal said the short-term dip was a result of trade deferrals and inventory liquidation ahead of the GST transition but reaffirmed confidence in a strong rebound. “With improving market sentiment and a favourable season ahead, we remain confident of strong growth in the coming quarters,” he said.
Vice Chairman and Whole-Time Director Mohan Goenka added that October marked “a clear turning point,” with deferred winter stock loading recovering. “These gains, coupled with trade normalisation and our strategic interventions, position us to sustain profitable growth in the second half,” he said.
During the quarter, Emami expanded its innovation-led strategy, relaunching Kesh King Gold with upgraded formulations and extending the Smart and Handsome men’s grooming line with 12 new SKUs. Its international business grew 8% despite global headwinds.
Emami’s gross margins remained stable at 71%, though EBITDA and PAT fell 29% and 30% respectively due to lower topline. The board declared an interim dividend of ₹4 per share (400%) for FY26.
