Emami Q1 Results Review — Dolat Capital Maintains 'Reduce' Rating On The Stock, Cuts Target Price

Emami's net sales declined by a mere 0.2% YoY to Rs 9.0 billion in Q1 FY26. Domestic business de-grew by 1% with 3% volume de-growth, while international business grew by 2% YoY (flat growth in CC terms). Core Domestic business (Ex-Talc/ PHP) grew by 6% with 3% volume growth.

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Dolat Capital Report

Emami Ltd.'s Q1 FY26 revenue was below; however, Ebitda/adjusted profit after tax were in line with our estimates. Domestic revenue de-grew by 1.0% with 3.0% volume drop due to unseasonal rains, nonetheless, core domestic business (ex-Talc/ PHP) grew by 6% with 3% volume growth.

International business grew by 2.0% YoY. In constant currency terms, IB reported flat growth.

Organized channels like modern trade, E-commerce and institutional sales grew by ~6% with saliency improving by 190bps. Emami is continuously improving its share in the new trade channels and is expected to accelerate sales.

Though Q1 profitability was in line with our estimate, we have reduced our FY26/27E EPS estimates by 6.6/4.2% at Rs. 19.4/21.0 to factor in growth challenges across select categories.

We continue to value the stock at 30x FY27E EPS and reduce the target price to Rs 628 (Rs 656 earlier). Maintain ‘Reduce' rating.

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