Emami Q4 FY26 Results (NSE: EMAMILTD)
Signal: Revenue declined
The read
The key inflection is another Q4 margin contraction: EBITDA margin fell 230bps YoY to 22.7% after a 300bps contraction in Q4FY25 and a 600bps contraction in Q2FY26, while FY26 revenue declined 0.8% and PAT declined 3.4%; elevated advertising intensity and an undisclosed gross-margin headwind remain the main thesis risks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹925.1 Cr | -4.0% | -19.7% |
| EBIT | ₹164.48 Cr | -15.3% | |
| Net profit | ₹143.17 Cr | -11.7% | |
| EPS | ₹3.28 | -11.8% | |
| EBIT margin | 22.7% |
P&L walk
Q4FY26 revenue fell 4.0% YoY and 19.7% QoQ, gross margin compressed 255bps YoY as material costs rose to 31.5% of revenue from 34.1%? No: the filing-based gross margin was 31.5% versus 34.1%, EBITDA margin fell 230bps to 22.7%, and PAT declined 11.7% to ₹14,317 lakh.
Segments
India remained the core business with Q4 revenue of ₹74,490 lakh, down 3.8% YoY, while outside-India revenue of ₹18,020 lakh declined 4.4% YoY; the filing provides no segment result split, so no profit driver can be isolated.
Key positives
- The group remained net-cash positive at ₹28,746 lakh at March 2026, improving by ₹7,663 lakh from March 2025.
- FY26 operating cash flow remained positive at ₹80,053 lakh despite PAT of ₹77,526 lakh, although it declined 10.6% YoY.
- Q4FY26 EPS of ₹3.28 declined 11.8% YoY in line with PAT decline of 11.7%, with no evidence of material dilution.
Key concerns
- Q4FY26 gross margin compressed 255bps YoY to 68.5%, with material and inventory-related costs at 31.5% of revenue versus 34.1% a year earlier; the filing does not disclose the cause.
- Advertisement and sales promotion expense rose 12.2% YoY to ₹21,197 lakh while revenue fell 4.0%, lifting the expense ratio to 22.9% from 19.6%.
- EBITDA margin contracted 230bps YoY to 22.7%, following the 300bps contraction in Q4FY25 and 600bps contraction in Q2FY26.
- FY26 revenue declined 0.8% to ₹3,77,951 lakh and PAT declined 3.4% to ₹77,526 lakh, indicating limited underlying growth.
Research and educational content only. Not investment advice.