Emami Q4 Results: Stock falls on earnings miss amid weak summer portfolio demand

Emami Ltd reported a subdued set of fourth-quarter earnings on Thursday as an unfavourable summer season and geopolitical disruptions in West Asia weighed on performance, prompting investors to push the stock lower in afternoon trade.

The FMCG major posted an 11.7% year-on-year decline in net profit at ₹143 crore for the March quarter, compared with ₹162 crore a year earlier. Revenue fell 4% to ₹925 crore from ₹963 crore, while EBITDA declined 15% to ₹186.6 crore. EBITDA margin narrowed sharply to 20.2% from 23% in the corresponding quarter last year.

Following the earnings announcement, shares of Emami fell as much as 4% intraday to ₹410.10 on the NSE.

The company said temporary external headwinds impacted quarterly performance, particularly a disrupted summer season that hurt its summer-focused portfolio. However, Emami highlighted that its non-summer domestic portfolio remained resilient and delivered healthy 11% growth during the quarter.

International operations also faced pressure, with revenues declining 5% due to geopolitical disruptions in the West Asia region, especially during March.

Despite the weak quarter, Emami said organised trade channels continued to strengthen, now contributing around 32% of domestic revenues. Quick commerce platforms and GT Marts also recorded rapid growth.

Vice Chairman and Managing Director Harsha V Agarwal described the challenges as temporary rather than structural and expressed confidence that business momentum would improve from the next quarter onward.

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The company also announced strategic investments aimed at strengthening its future growth portfolio. Emami increased its stake in Axiom Ayurveda, maker of AloFrut, and is also acquiring a majority stake in IncNut Digital, which owns personalised beauty and skincare brands Vedix and SkinKraft.

Emami manufactures and markets a wide range of personal care, healthcare and FMCG products across India and international markets.