Emami increased its advertising and sales promotion expenditure by 13.2% year-on-year during the first quarter of FY27 as the FMCG company posted a 15% rise in consolidated revenue, backed by robust domestic demand and continued investments in its portfolio.
The company spent Rs 203.4 crore on advertising and sales promotion during the quarter ended June 30, 2026, compared with Rs 179.8 crore in the corresponding period last year.
Consolidated revenue from operations rose to Rs 1,039.2 crore from Rs 904.1 crore a year earlier. Domestic business grew 20%, while like-to-like domestic growth stood at 12%, with volume growth of 8% after adjusting for the previous year's acquisitions of Axiom Ayurveda and IncNut Digital.
International operations, however, declined 12% during the quarter due to disruptions caused by the West Asia conflict, which affected order execution.
Despite rising crude oil-linked input costs and inflationary pressures, Emami reported EBITDA of Rs 226 crore, up 6% year-on-year. Profit before tax increased 4% to Rs 195 crore, while profit after tax declined to Rs 138.9 crore from Rs 164.3 crore in the year-ago period. Gross margins contracted by 360 basis points to 65.8% owing to higher packaging and raw material costs.
Among its business segments, Hair & Scalp Care emerged as the fastest-growing category with an 11% increase, while Skin Care and Health Care recorded growth of 3% and 2%, respectively.
The company's strategic investment portfolio, comprising Axiom Ayurveda and IncNut, grew 61% on a like-to-like basis and contributed nearly 18% of the domestic business during the quarter.
Emami also continued to strengthen its omnichannel presence. Organised trade channels grew 19% on a like-to-like basis and accounted for 32% of domestic sales, while quick commerce contributed 35% of the company's e-commerce revenue.
During the quarter, Emami increased its stake in Axiom Ayurveda, making it a wholly owned subsidiary, and acquired a majority stake in IncNut, the parent company of Vedix and SkinKraft, to expand its presence in the personalised beauty and personal care segment.
Commenting on the performance, Harsha V. Agarwal, vice chairman and managing director, said the company delivered strong domestic growth despite geopolitical uncertainties, uneven summer conditions and inflationary headwinds. He added that digital technologies and artificial intelligence are becoming key enablers of Emami's long-term growth strategy.
Mohan Goenka, vice chairman and whole-time director, said the company remains focused on cost optimisation, operational efficiency, channel transformation and innovation to support sustainable profitability amid elevated input costs.
