Emami H1FY27 Results (NSE: EMAMILTD)
Signal: Margin pressure
The read
The H1 trajectory is revenue-led but not yet profit-led: revenue grew 24.9% to 212,686 lakh, largely from 31.6% domestic growth, while gross margin contracted 440bps and EBITDA margin fell 260bps to 23.0%; PAT declined 9.0% because the higher operating profit was outweighed by tax and finance-cost pressure. Acquisitions of Axiom and IncNut also make reported growth non-comparable with the prior period.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,126.86 Cr | +24.9% | N/A |
| EBIT | ₹390.21 Cr | +14.5% | |
| Net profit | ₹284.44 Cr | -9.0% | |
| EPS | ₹6.45 | -9.9% | |
| EBIT margin | 23.0% |
P&L walk
H1 revenue increased 24.9% to 212,686 lakh, but gross margin fell 440bps to 65.8% as material costs rose faster than sales; EBITDA grew 12.4% to 48,995 lakh while margin contracted to 23.0%, and PAT declined 9.0% to 28,444 lakh mainly with the higher 10,389 lakh tax charge.
Segments
Within-India revenue drove the group, rising 31.6% YoY to 181,741 lakh, while outside-India revenue declined 3.9% to 30,945 lakh; the filing provides no segment-result table.
Key positives
- Revenue increased 24.9% YoY to 212,686 lakh, with within-India revenue up 31.6% to 181,741 lakh.
- Employee, advertising and other expenses grew 5.5% to 95,142 lakh, materially slower than revenue growth, although this did not prevent EBITDA margin from falling to 23.0%.
- EBIT rose 14.5% YoY to 39,021 lakh despite a 440bps gross-margin contraction, showing partial operating absorption of the input-cost pressure.
- The company utilised 2,527 lakh of MAT credit in H1FY27, supporting the tax profile versus the statutory cash-tax burden.
Key concerns
- Gross margin compressed 440bps to 65.8%, with cost of materials consumed rising to 24.4% of revenue from 21.4%; the filing does not disclose the reason for the deterioration.
- PAT fell 9.0% to 28,444 lakh despite EBIT growth of 14.5%, as total tax expense rose to 10,389 lakh from 2,434 lakh and finance costs increased 131.0% to 1,169 lakh.
- Outside-India revenue declined 3.9% YoY to 30,945 lakh, contrasting with 31.6% domestic growth and leaving the international trajectory weak.
- The 24.9% consolidated revenue growth is not comparable with the prior period because Axiom became a subsidiary from 1 April 2026 and IncNut from 1 June 2026.
Research and educational content only. Not investment advice.