Emami Q2 FY27 Results Analysis: Revenue Jumps 36%, EBITDA Margin Compresses 192 bps (EMAMILTD)
Cofacto Research
Published November 05, 2026
3 min read
Negative
Emami Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,087.65 Cr (+36.21% YoY) and PAT growth of -1.92% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | November 05, 2026 |
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| Revenue (Q2) | Rs. 1,087.65 Cr (+36.21% YoY) |
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| PAT (Q2) | Rs. 145.50 Cr (-1.92% YoY) |
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| EBITDA margin | 20.44% (-192 bps YoY) |
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| EPS (Q2) | Rs. 3.30 (-2.94% YoY) |
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Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|
| "the guided double-digit print being achievable" on the low base + M&A | rev_yoy_pct = +36.21% | Played out |
| "compressing bias — crude exited the quarter far higher than it entered"; GM recovery "looks at risk" | gm_q2fy27_pct = 65.82% (flat QoQ, −520 bps YoY); EBIDTA margin 20.44% vs Q1 21.76% | Played out |
| International checkpoint "looks behind on the evidence retrieved" | intl_yoy_pct = +1.12% vs double-digit guide — guide missed | Played out |
| Tax "path has substance" via MAT credit toward 25–26% | etr_q2fy27_pct = 24.85% | Played out |
| Input offset "chased by a rising cost curve, not a fading one" | GM flat sequentially; no recovery | Played out |
| Watch: whether the qualified review resolves | Still qualified this quarter — persists | Played out |
| Watch: interim dividend | Rs.5/share declared | Played out |
| Watch: reported-vs-LTL split; Strategic Investments run-rate vs Rs.750–800 Cr | Not disclosed in the filing (single segment) — open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|
| Q2 FY27 "good double-digit growth" (consolidated) | Q4 FY26 earnings call, 21 May 2026 | +36.21% reported YoY — M&A- and base-flattered; no LTL split disclosed | Met |
| International double-digit growth by Q2 FY27 | Q4 FY26 earnings call, 21 May 2026 | +1.12% YoY (H1 −3.86%) — the direct checkpoint quarter failed | Missed |
| Tax rate "around 25–26% going forward" | Q1 FY27 earnings call, 4 Aug 2026 | ETR 24.85% | Met |
| Input-cost offset via prices; "the next few quarters should be relatively better than this" | Q1 FY27 earnings call, 4 Aug 2026 | Gross margin flat QoQ at 65.82%; EBIDTA margin 20.44% vs 21.76% in Q1 — offset not yet visible | Too Early |
| Consol EBIDTA margin "some improvement" (26–27% ask declined) | Q4 FY26 earnings call, 21 May 2026 | 20.44% vs 22.36% year-ago, 21.76% in Q1 — no improvement yet | Too Early |
| Interim dividend FY27 to be considered 5 Nov 2026 | Board-meeting intimation, Oct 2026 | Rs.5/share declared | Met |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|
| Domestic volume (reported) | ~−16% | +9% | −7% | +16% | not disclosed |
| Gross margin | 71.0% | 70.6% | 68.4% | 65.8% | 65.82% |
| EBIDTA margin (mgmt basis) | 22.36% | 33.4% | 20.22% | 21.76% | 20.44% |
| Effective tax rate | 1.22% | — | — | 28.64% | 24.85% |
| International revenue YoY | +8% | +9% | −5% | −12% | +1.12% |
Key Investment Insights
Key Positives
- Consolidated revenue grew 36.21% YoY to Rs.1,087.65 Cr, the second consecutive acceleration after +14.9% in Q1 FY27
- EBIDTA grew 24.53% YoY to Rs.222.32 Cr on the management basis
- Effective tax rate normalised to 24.85%, inside management's guided 25-26% band, with Rs.593.10 Cr of MAT credit still available
- Subsidiaries flipped from a −Rs.44.87 Cr PAT drag in Q1 to a +Rs.7.70 Cr contribution in Q2
- H1 CFO of Rs.266.77 Cr covered capex of Rs.20.91 Cr ~12.8x; FCF of Rs.245.86 Cr
- India revenue grew 46.44% YoY, carrying the entire growth
Risk Factors
- EBIDTA margin fell ~192 bps YoY to 20.44% and 132 bps QoQ; gross margin fell 520 bps YoY to 65.82% with no recovery yet
- Consolidated PAT declined 1.92% YoY to Rs.145.50 Cr and EPS fell 2.94% to Rs.3.30 despite 36.21% revenue growth
- International revenue grew only +1.12% YoY (H1 −3.86%), missing management's double-digit growth guidance for Q2 FY27
- Cost of materials consumed grew 51.69% YoY, outpacing revenue; the promised price-increase offset has only stabilised, not recovered, margins
- Qualified limited review persists — one subsidiary group (Q2 revenue Rs.8,357 lacs) remains unreviewed
- Standalone PAT fell 25.16% YoY on the tax swing (Rs.45.73 Cr vs a Rs.(1.49) Cr prior-year credit)
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
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