Emami's Q2 Profit Tumbles 30%! GST Chaos & Heavy Rains Dent Sales - What Investors MUST Know!

Emami Limited's consolidated profit after tax for the second quarter ended September 30, 2025, declined by 29.7% to ₹148.35 crore, compared to ₹210.99 crore in the same period last fiscal. Consolidated revenue from operations also saw a dip, coming in at ₹798.51 crore versus ₹890.59 crore year-on-year. The company cited two primary reasons for this performance: temporary trade disruptions due to anticipation of GST rate cuts, leading consumers and trade channels to defer purchases in September, and excessive rainfall that affected sales of certain product categories like talc and prickly heat. Despite these challenges, Emami noted that nearly 88% of its core domestic portfolio benefited from the GST reduction to 5%, which is structurally positive for long-term demand. The board has approved an interim dividend of ₹4 per share for FY25-26. Management expressed optimism for the second half of the fiscal year, anticipating a rebound in trade sentiment and recovery in winter portfolio loading.

Impact: This news has a direct impact on Emami Limited's stock performance and investor sentiment within the Fast-Moving Consumer Goods (FMCG) sector. The reasons cited are temporary, suggesting potential recovery. Rating: 6/10

Difficult Terms: Consolidated profit after tax: The total profit of a company and its subsidiaries after deducting all expenses, taxes, and interest. Revenue from operations: The total income generated from the primary business activities of a company. GST rate cut: A reduction in the Goods and Services Tax rate, which can affect product pricing and consumer demand. Offtake: The rate at which products are sold or consumed by the end-user. MRP (Maximum Retail Price): The highest price at which a product can be sold to the end consumer. Pipeline build-up: The process of stocking up inventory by distributors and retailers in anticipation of seasonal demand. Loading: The process of replenishing inventory in the distribution channel.