Emami shares slide over 4% after weak Q4; profit, revenue and EBITDA fall

Emami Ltd shares came under pressure on Thursday after the FMCG company reported a softer-than-expected March quarter, with the stock falling as much as 4.36% to an intraday low of ₹410.10 before ending lower. The decline came after the company posted a drop in profit, revenue and EBITDA for Q4FY26, even as management flagged the weakness as temporary.

The company reported consolidated net profit of ₹143 crore in the quarter, down 11.7% from ₹162 crore in the same period last year. Revenue from operations slipped 4% year-on-year to ₹925 crore, while EBITDA declined 15% to ₹187 crore and EBITDA margin narrowed to 20.2% from 22.8%.

Emami said the quarter was hit by unfavourable seasonal conditions that hurt its summer portfolio, along with geopolitical disruption in West Asia that weighed on its international business. “The quarter was impacted by unfavourable seasonal conditions affecting the summer portfolio, along with geopolitical disruptions in West Asia,” the company said in its investor presentation.

Management commentary

Despite the weak print, management struck an upbeat tone on the business outlook. The company said its non-summer domestic portfolio grew 11% in Q4, indicating resilience in the underlying business. It also pointed to healthy channel trends, saying organised channels contributed about 32% of domestic business during the quarter.

Harsha Vardhan Agarwal, vice-chairman and managing director, said the challenges were temporary and not structural. “While these factors affected near-term performance, we believe they represent a passing phase rather than a structural concern, and we expect business momentum to improve from next quarter itself,” he said. Mohan Goenka, vice-chairman and whole-time director, added that the quarter tested the operating model but the company still delivered gross margin expansion through cost control.

“Despite a muted demand environment, we delivered a gross margin expansion of 250 basis points through strong cost management and operational efficiencies,” Goenka said.

Why stock fell

Investors appeared to focus on the earnings miss and the margin contraction, rather than the company’s optimistic commentary. Higher ad spends and weaker seasonal sales weighed on operating performance, while the stock reacted sharply to the softer top line and EBITDA print. The move also mirrored the tone of market desks, which highlighted the Q4 print as a setback for the counter.

Emami said business momentum should improve from the next quarter, supported by a recovery in the summer portfolio and continued brand investments. The company also reiterated its growth push through investments in Axiom Ayurveda and IncNut Digital, which it says will strengthen its future portfolio.