Emami Limited ended FY26 with mixed results as the FMCG company faced pressure on its earnings while continuing to expand its presence in India’s growing direct-to-consumer (D2C) beauty and personal care market. Although its core business remained stable, weak demand for summer products, global supply chain issues and higher operating costs affected the company’s overall performance.
At the same time, premium men’s grooming brand The Man Company, which is now fully owned by Emami, reported a sharp increase in losses despite recording a small rise in revenue. Even with these challenges, Emami has continued investing in new-age consumer brands to strengthen its long-term business.
Weak summer season and global challenges affect Emami’s FY26 results
Emami’s financial performance showed the impact of a difficult business environment during FY26. In the fourth quarter, the company’s consolidated revenue from operations fell 4% year-on-year to ₹925 crore. Profit after tax dropped 12% to ₹143 crore, while EBITDA declined 15% to ₹187 crore.
For the full financial year, revenue slipped 1% to ₹3,780 crore and net profit fell 4% to ₹775 crore.
A major reason for the weaker quarterly performance was poor demand for summer products. Sales from the company’s summer portfolio declined by 22%, which pulled down overall domestic sales. However, the company’s regular product portfolio performed much better. Excluding summer products, core domestic sales grew 11%, supported by a 7% increase in volume. The pain management category also recorded 11% growth.
During FY26, Emami also reported an exceptional expense of ₹10.15 crore because of changes in wage definitions under the government’s New Labour Codes.
To deal with rising raw material prices and inflation, the company increased prices by around 1.5% to 2.5% across different pack sizes. It also used shrinkflation, which means reducing product quantity while keeping prices almost the same.
Modern trade, e-commerce and institutional sales continued to grow strongly and together contributed around 32% of Emami’s domestic business. Quick commerce platforms and GT Marts were among the fastest-growing sales channels.
The company also continued its brand repositioning efforts. Earlier, it had renamed its popular men’s grooming product from “Fair and Handsome” to “Smart and Handsome” to create a more modern and inclusive brand image.
International business also faced challenges because of geopolitical tensions in West Asia. Supply chain disruptions linked to the closure of the Strait of Hormuz affected exports, especially in GCC, CIS and South Asian markets. According to the company’s management, international revenue declined 5% during the fourth quarter as shipping operations were disrupted throughout March.
Despite these issues, Emami’s international business still grew 8% during the full financial year and contributed about 22% of the company’s total sales. The company expects international operations to improve gradually from the second quarter of FY27.
The Man Company records higher losses as Emami expands its D2C business
While Emami is focusing on building its premium grooming business, The Man Company continued to face financial pressure during FY26.
Emami completed the purchase of the remaining 49.60% stake in Helios Lifestyle Pvt. Ltd., the parent company of The Man Company, for ₹177.63 crore. The company had already become the majority shareholder after starting its investment in 2017.
However, the brand’s latest financial results were disappointing. Revenue increased by only 4.5% during FY26 to around ₹161.17 crore, but net losses jumped 48.7% to ₹32.54 crore.
The rising losses show that the company’s costs increased faster than its revenue. During FY26, The Man Company spent ₹1.20 to earn every ₹1 of operating revenue, compared with ₹1.15 in the previous year. Higher procurement and operating expenses were the main reasons behind the weaker performance.
At the end of FY26, the company had cash and bank balances of ₹4.09 crore, while its total current assets stood at ₹46 crore.
The brand also lagged behind some of its competitors. Marico-owned Beardo crossed ₹200 crore in revenue during FY25 and reported a sharp rise in profits, while Ustraa recorded a fall in revenue during the same period.
Even with these challenges, Emami continues to expand its D2C business. In the first quarter of FY27, the company signed an agreement to acquire the remaining stake in Axiom Ayurveda, the company behind the AloFrut brand, for up to ₹200 crore. It also announced the acquisition of a 60% stake in IncNut Digital, the parent company of Vedix and SkinKraft, for up to ₹321 crore.
These investments show that Emami is focused on building a stronger presence in India’s fast-growing beauty and wellness market. Although short-term profits remain under pressure because of higher costs and market challenges, the company is continuing to invest in premium consumer brands with the aim of achieving long-term growth.