Emami Ltd

Encumbrance release details

• Emami Limited: Diwakar Finvest Private Limited released encumbrance of 5,000 shares as per lender agreement with Standard Chartered Capital Limited.
• Emami Limited: Suraj Finvest Private Limited released encumbrance of 5,000 shares as per lender agreement with Standard Chartered Capital Limited.
• Before release, Diwakar encumbered 26,796,014 shares; after, 26,791,014 (6.14%).
• Before release, Suraj encumbered 8,471,992 shares; after, 8,466,992 (1.94%).

Financial Performance

• Consolidated revenue grew 15% to INR 1,039 crores in Q1 FY27.
• Domestic revenue grew 20%; like-for-like growth 12%; volume up 8%.
• EBITDA rose 6% to INR 226 crores; PBT up 4% to INR 195 crores.
• PAT stood at INR 137 crores, down 16% due to tax-rate normalization.
• International business declined 12% due to West Asia disruptions.
• Input costs rose; pricing actions to offset; gross margin moderated vs last year.
• Startups Axiom and IncNut; 61% like-for-like growth; startups at 18% of domestic.
• Full-year startup revenue target: INR 750–800 crores.

Operating Update

• Hair and Scalp care grew 11%; Navratna Cool Oil strong double-digit.
• Kesh King grew in mid-single digits; 7 Oils in One strong growth.
• Skin care up 3%; talcum powder high single-digit growth.
• Healthcare grew 2%; OTC portfolio grew in high-teens.
• Organized channels up 19% like-for-like; 32% of domestic business.
• Modern trade and e-com momentum; quick commerce 35% of e-com.
• International business decline persists; disruptions in West Asia; momentum to recover.

Strategic Investments and Margin Profile

• Aggregate startup EBITDA near breakeven; margins vary by brand.
• Gross margins: TMC north of 60%; Brillare and IncNut north of 70%.
• Funding for acquisitions is internal; INR 500 crores invested in Axiom.
• 3-year EBITDA margin trajectory: high single digits.
• Channel mix: about 20% offline; 25–30% own assets; remainder online.

Outlook and Guidance

• FY27 remains; remainder quarters expected to be relatively better; pricing offset input costs.
• Inflationary pressures from commodity costs continue; offset through pricing and productivity.
• International business expected to recover; better numbers in Q3 and Q4.
• Talcum powder rebound; full-year numbers significantly higher.
• End-year startup revenue target: INR 750–800 crores.

Q&A Highlights

• 61% like-for-like growth across four startups; sustainability expected in balance of year.
• Startups aggregate EBITDA near breakeven; gross margins remain high.
• Startup funding largely internal; some payments due; other income lower this year.
• Kesh King growth stabilizing; efforts to drive double-digit growth by year-end.
• Zandu OTC focus with Pancharishta and Nityam campaigns; strong double-digit growth.
• Core domestic growth around 6% excluding startups; international drag due to Middle East.

Overview

• Standalone boundary for FY2025-26; BRSR forms part of the Integrated Annual Report.
• Main activity: FMCG manufacture and marketing; 100% turnover from core categories.
• Exports contributed 4.8% of standalone revenue in FY2025-26.
• Assurance provided by SGS India Private Limited; reasonable assurance on core KPIs.

Key ESG Risks & Opportunities

• Waste management: 100% plastic recycling; CPCB EPR compliance; upcycling and compostable packaging.
• Water risk: one unit in a water-stressed region; pursuing ZLD with rainwater harvesting and reuse.
• Energy/climate: 10.5% reduction in Scope 1+2; 21% renewable energy; solar adoption; cost implications.
• Human rights: supply-chain risk; formal HR policy and grievance mechanism; reputational/financial risk if violated.
• Governance: strong policies; board oversight; anti-corruption and whistleblower policies; potential penalties.
• Consumer health: wellness focus offers growth; robust product safety protocols to mitigate recalls.

Governance & Policy Highlights

• ESG & CSR Committee oversees BRSR; chaired by Whole-Time Director; includes MD and independent director.
• Policies align with nine NGRBC principles; board-approved; linked to UN SDGs.
• Anti-corruption policy and Whistleblower policy; Code of Conduct in governance framework.
• ISO 9001/14001/45001 and WHO GMP certifications; ISO 31000 risk management framework.

Social Responsibility & Workforce

• Total employees: 2,159; permanent 2,090; other 69; total workers 3,288; women 663.
• 100% training coverage for employees and workers; 8,107 online and 502 classroom sessions.
• LTIFR for employees: 0.16; total injuries among workers: 2; no fatalities.
• Wellbeing spend: 0.27% of revenue; ESIC/insurer coverage for health benefits.
• POSH: 1 sexual harassment case; one upheld; robust grievance redressal mechanisms.

Environmental Performance

• Total energy: 110,389 GJ; renewable energy share 21%; non-renewable energy declined.
• GHG: Scope 1 1,488 tCO2e; Scope 2 13,135 tCO2e; intensity 4.8 tCO2e/₹ crore.
• Waste: total 2,238 MT; plastic recycled 7,250 MT; hazardous waste 303.42 MT disposed.
• Water: withdrawal 159,025 kl; consumption 120,124 kl; ZLD practiced across units.
• NOx 0.054, SOx 6.807, PM 1.808 MT; external assurance by SGS on GHG/water/waste.

Stakeholder Engagement & Complaints

• Stakeholders: customers, government authorities, employees/workers, suppliers, and CSR beneficiaries.
• Engagement channels: ongoing brand/relationship activities; NVGBC-aligned training for suppliers and distributors.
• Complaints FY2025-26: customers 185; shareholders 17; employees 9; communities 1; value chain 30.
• No material unresolved complaints reported at year-end across categories.

Other Notable Metrics

• LCA/PCF: gate-to-gate studies; cradle-to-grave PCF for one brand; multiple LCAs in progress.
• Packaging: 90% of packaging reusable/recyclable/compostable; 80% targeted products with compostable secondary packaging.
• EPR: 100% fulfilment; CPCB-aligned post-consumer plastic waste handling through PWPs/PROs.
• CSR reach: ~7.96 lakh beneficiaries; aspirational district programmes in Madhya Pradesh.
• Independent assurance: SGS India provides reasonable assurance for core BRSR indicators.

Financial performance

• FY26 revenue ₹3,779.5 cr; YoY −1%.
• EBITDA ₹963.6 cr; margin 25.5%.
• PAT ₹775.3 cr; margin 20.5%.
• EPS ₹17.76 per share.
• ROE 29.9%.
• ROCE 28.7%.
• Interim dividend ₹10 per share; total ₹436.5 cr.

Strategic developments

• Axiom Ayurveda 63.27% stake; IncNut majority 60%.
• Vedix and SkinKraft integrated; Kesh King Gold relaunched on Ayurveda+Science platform.
• Strategic investments ~6% of turnover; target ~25% by FY30.

AGM details

• AGM on 25 August 2026 at 4:00 PM IST, via VC/OAVM.
• Cut-off date for attendance and voting eligibility: 18 August 2026.
• Venue deemed at registered office; meeting held via VC/OAVM.
• Remote e-voting window: 20 Aug 2026 9:00 AM to 24 Aug 2026 5:00 PM.

Ordinary business resolutions

• Adopt standalone financial statements for year ended 31 March 2026.
• Adopt consolidated financial statements for year ended 31 March 2026.
• Re-appoint Shri Harsha Vardhan Agarwal as Director (retiring by rotation).
• Re-appoint Shri Aditya Vardhan Agarwal as Director (retiring by rotation).
• Re-appoint Shri Prashant Goenka as Director (retiring by rotation).

Special business resolutions

• Increase remuneration of Vice-Chairman & Managing Director to ₹34 Lacs per month.
• Re-appoint Harsha Vardhan Agarwal as Vice-Chairman & Managing Director for five years from 1 Apr 2027.
• Ratify remuneration of cost auditors for 2026-27 (₹2,00,000 plus taxes and expenses).

Meeting Details

• Tuesday, 4 August 2026 at 4:00 PM IST.
• Conference call with analysts/investors; virtual format.
• Organised by Emami Limited; post-Q1 FY27 results.
• Discuss business strategy and outlook post Q1 FY27 results.
• Key participants: Wholetime Director & Vice Chairman; CEO (International Business).
• Other executives: Chief Growth Officer; Presidents (Healthcare, Sales, Finance & IR).
• Details and materials will be available on the company website.
• Regional times: HK/Singapore 6:30 PM; UK 11:30 AM; NY 6:30 AM.

Meeting Details

• Board meeting on Tuesday, 4 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated Q1 FY2026 results for quarter ended 30 June 2026.

Other Notes

• Trading window closure from 1 July 2026 to 6 August 2026.

Encumbrance releases

• Diwakar Finvest Pvt Ltd released 9,00,000 shares from Bajaj Finance encumbrance on 08-07-2026.
• Post-release encumbred shares fell from 2,79,39,014 (6.40%) to 2,70,39,014 (6.19%).
• Diwakar Finvest Pvt Ltd released 2,43,000 shares to IndusInd Bank on 10-07-2026.
• Post-release encumbrance reduced to 2,67,96,014 shares (6.14%).
• Suraj Finvest Pvt Ltd released 6,47,000 shares to IndusInd Bank on 10-07-2026.
• Post-release encumbrance by Suraj Finvest fell from 91,18,992 (2.09%) to 84,71,992 (1.94%).
• Promoter entities involved: Diwakar Finvest Pvt Ltd and Suraj Finvest Pvt Ltd.
• Encumbrances were in favor of Bajaj Finance Limited and IndusInd Bank Limited.
• Reason: release of encumbrance per loan agreement with lender.
• Post-release promoter encumbrance: Diwakar 6.19%, Suraj 1.94% of total share capital.