How Emami Is Growing Strong Despite Market Challenges
Emami Limited, one of India’s leading FMCG companies, has shown that even a 50-year-old business can continue to grow by adapting to changing consumer trends. Despite inflation, rising raw material costs, and global uncertainty, the company reported a strong performance in the first quarter of FY27.
Emami’s revenue increased 15% year-on-year to ₹1,039 crore, proving that the company is successfully balancing its traditional brands with new growth opportunities.
1. New-Age Brands Are Driving Growth
One of the biggest highlights of the quarter was the impressive performance of Emami’s strategic investment portfolio.
Brands such as The Man Company, Vedix, and Brillare recorded 61% like-to-like growth. These brands now contribute nearly 18% of Emami’s domestic business, helping the company attract younger and digital-first consumers.
According to Vice Chairman and Managing Director Harsha V. Agarwal, these investments are becoming an important growth engine alongside Emami’s established brands.
2. Strong Focus on Product Categories
Instead of reporting performance brand by brand, Emami has started presenting its business by product categories such as:
- Skin Care
- Hair & Scalp Care
- Healthcare
This gives investors a better understanding of which parts of the business are growing the fastest.
During the quarter, the Hair & Scalp Care category delivered an impressive 11% growth.
3. Quick Commerce and Digital Sales Continue to Expand
Emami is strengthening its digital presence while maintaining a massive retail network of 5.4 million outlets across India.
Organized retail channels grew 19% and now contribute 32% of domestic sales.
Quick commerce is also becoming a major sales channel, accounting for 35% of Emami’s e-commerce business. The company is also investing in digital marketing campaigns to connect with younger consumers through online platforms.
4. International Business Faces Temporary Challenges
While domestic sales remained strong, Emami’s international business declined 12% during the quarter.
The company said the decline was mainly due to disruptions caused by the conflict in West Asia, which affected order execution.
Despite these short-term challenges, Emami continues to improve its international operations and pricing strategy to support future growth.
5. Investing in Wellness and Personal Care
Emami is expanding its presence in fast-growing wellness and personal care segments through acquisitions such as:
- Axiom Ayurveda (AloFrut)
- IncNut (Vedix and SkinKraft)
These businesses strengthen Emami’s position in preventive healthcare and personalized beauty.
Although higher crude oil and packaging costs reduced gross margins, the company managed to maintain healthy profitability through disciplined cost control.
During Q1 FY27, Emami reported:
- Revenue: ₹1,039 crore
- EBITDA: ₹226 crore
- Profit Before Tax (PBT): ₹195 crore
- Net Profit : 139 crore.
Emami remains optimistic about the rest of FY27. The company reported 16% domestic volume growth (8% on a like-to-like basis) and plans to continue investing in digital technology, AI, innovation, and new-age brands.
By combining its trusted legacy brands with modern consumer-focused businesses, Emami is building multiple growth engines for the future. While challenges such as inflation and global uncertainty remain, the company appears well-positioned to deliver sustainable long-term growth.