Shares of Emami opened nearly 2% lower on Friday after reporting a weak performance in the quarter ended March 31, 2026. Global brokerage Jefferies maintained a bearish outlook and cut its target price to Rs 620 from Rs 650 on the stock after what it described as "another quarter, another miss" for the FMCG conglomerate. However, the brokerage sustained its 'buy' call on the stock. Emami shares last traded 2.27% lower at Rs 407.20 apiece on the NSE.
The brokerage said the volatile trend in Emami's revenues continued in the fourth quarter, with sales declining during the period. Management attributed the weakness to unfavourable weather conditions, which hurt demand for key seasonal products. Jefferies noted that the revenue contraction had an obvious impact on EBITDA margins.
Emami's stock has seen a sustained derating, the brokerage said, given a series of disappointments in recent quarters. In this context, Jefferies said that the company's EBITDA has remained nearly flat over the past five years. It said that unless growth picks up, the stock is likely to remain out of favour with investors.
On the outlook, management expects the summer portfolio to grow in double digits in the first half of FY27, aided by harsh summer conditions. The international business is expected to post single-digit growth in the first quarter, with recovery to double digits from the second quarter onwards. Input cost inflation due to the Middle East crisis remains a concern, though margins are expected to improve somewhat in FY27.
Jefferies cut its FY27-28 EPS estimates by 6-8% to factor in the weak results. It retained its buy call solely on valuations, while cautioning that the stock needs growth to perform.
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Emami Share Price Today
Emami Share Price Today
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The scrip fell as much as 2.37% to Rs 407 apiece intraday on Friday at 10:00 a.m. This compares to a 0.52% rise in the NSE Nifty 50 Index. It has fallen 32.69% in the last 12 months and 23.08% year-to-date. Total traded volume so far in the day stood at 0.52 times its 30-day average. The relative strength index was at 48.85.
Emami Q4 Results
Emami Ltd. reported its Q4FY26 with a weak set of earnings, with net profit, revenue and operating earnings all declining on a year-on-year basis. The company posted a consolidated net profit of Rs 143 crore for Q4 FY26, down 11.7% from Rs 162 crore in the year-ago period.
Revenue from operations fell 3.9% to Rs 925 crore from Rs 963 crore, while EBITDA declined 14.9% to Rs 187 crore from Rs 219 crore. EBITDA margins contracted to 20.2% from 22.8%, accounting for a compression of 260 basis points year-on-year.
ALSO READ: Emami Q4 Results: Profit Falls 12%; Revenue And Margin Decline
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