This quarter witnessed a transformational policy development with the Government’s decision to reduce GST rates across key FMCG categories
The Board of Directors of Emami Limited met on Monday 10th November 2025 to consider the unaudited financial results of the company for the
second quarter and half year ended FY26.This quarter witnessed a transformational policy development with the Government’s decision to reduce GST rates across key FMCG categories. This is a landmark reform aimed at enhancing affordability, improving consumer purchasing power, and ultimately stimulating broad-based consumption across both urban and rural India.For the Company, this reform is structurally positive, as nearly 88% of its core domestic portfolio benefited from the reduction in GST from 12% or 18% to 5%, taking its total 5% GST rate portfolio coverage in the core domestic business to around 93%. In keeping with its consumer first philosophy, the Company swiftly passed on the benefits of this rate cut, reinforcing its commitment to value-driven affordability and accessibility. The Company’s strategy of purposeful innovation and premiumisation continued to gain momentum. Last year, Fair and Handsome was rebranded as Smart and Handsome, repositioning it as a holistic men’s grooming brand. This quarter, the brand deepened its portfolio with 12 new SKUs across sunscreens, shower gels, under-eye creams, deodorants, face serums, and sheet masks, broadening its relevance across the male grooming spectrum.
Kesh King was also relaunched as Kesh King Gold, reinforcing its legacy while enhancing trust and modern appeal. The relaunch features refreshed packaging, sharper positioning, and an upgraded formulation enriched with Gro Biotin and Plant Omega 3-6-9—scientifically proven actives that amplify the efficacy of 21 Ayurvedic herbs to deliver visible, result-oriented performance.
On the financial front, Gross Margins remained stable at 71.0 %, underscoring the Company’s cost discipline and input price stability. EBITDA for the quarter stood at ₹179 crores, declining by 29%, while PAT stood at ₹148 crores, declining 30%; both reflecting the temporary impact of lower topline. The Board of Directors also declared an interim dividend of 400%, amounting to ₹4 per share for FY26.
Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said:
“We are happy that over 90% of our core domestic portfolio now falls under the lowest GST rate of 5%, making our products more affordable and accessible to consumers. The quarter’s performance was a temporary impact of trade disruptions linked to the pending GST revision and weak summer.
Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said:
“October marked a clear turning point, with trade sentiment rebounding and deferred winter loading recovering, putting us on a solid footing for the second half of the year. I am also pleased to share that our non-GST impacted portfolio delivered 10% growth in Q2 signifying that
consumer demand remained intact. These gains, coupled with normalisation of trade post GST reforms, and the positive of impact of strategic interventions position us to sustain profitable growth in the second half and strengthen our foundation for long-term value creation and
market leadership”
