Emami July-September PAT Down 30% On Year on GST Disruption, Weak Summer Demand

Emami Ltd reported a 29.7% year-on-year fall in consolidated profit after tax at ₹1.48 billion for the July–September quarter, hit by temporary trade disruptions ahead of a GST rate cut and muted demand in its summer portfolio.

Revenue from operations declined 10.3% to ₹7.99 billion from ₹8.91 billion in the same quarter last year, as distributors and consumers deferred purchases in anticipation of lower MRPs following the GST revision.

The company said the GST rate reduction—from 12% or 18% to 5%—is structurally positive, benefiting nearly 88% of its core domestic portfolio and laying the foundation for long-term demand growth. However, the transition caused short-term disruptions, coinciding with the peak winter pipeline build-up.

Emami’s total expenses fell slightly to ₹6.20 billion from ₹6.40 billion a year earlier. Its summer portfolio also remained under pressure for a second straight quarter due to excessive rains impacting talc and prickly heat sales.

Vice Chairman and Managing Director Harsha V Agarwal said the impact was temporary and the company remains confident of strong growth ahead, supported by improved trade sentiment and a favourable season.

The board declared an interim dividend of ₹4 per share for 2025-26.