EBITDA declined by 28.7% YoY to Rs 178.5 crore while EBITDA margin contracted by 570 basis points to 22.4% in the second quarter.

Profit before tax in Q2 FY26 stood at Rs 150.2 crore, down by 31.9% from Rs 220.4 crore in Q2 FY25.

Emami said that 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. While this reform lays the foundation for long-term demand acceleration, its implementation caused temporary trade disruptions in September. Trade channels and consumers deferred purchases in anticipation of lower MRPs, while distributors focused on liquidating higher cost inventory, resulting in a short-term moderation in sales.

The timing of the GST rate change also coincided with the peak winter pipeline build-up, leading to a deferment in the company's winter portfolio loading. Further, the summer portfolio navigated a second consecutive weather-affected quarter, with excessive rains impacting offtake in talc and prickly heat categories on a high comparative base.

Consequently, consolidated revenues for the quarter stood at Rs 799 crore, declining by 10% on a YoY basis. Excluding GST-impacted categories, non-impacted portfolio cohorts delivered encouraging results growing by 10% during the quarter.

The company's International Business delivered steady 8% growth despite persistent macro and geopolitical headwinds.

Its approach remains strategically focused, combining portfolio relevance, market-specific innovation, and localized execution excellence to drive sustained value creation globally.

Harsha V Agarwal, vice chairman and managing director, Emami, 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. With improving market sentiment and a favourable season ahead, we remain confident of strong growth in the coming quarters.

Our bottom line remains stable, with costs well managed despite global supply chain challenges due to geo-political issues.”

Emami is one of India’s leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products. With over 550 diverse products, Emami’s portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King.

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