Emami Shares Fall 2% After Weak Q2 Results; PAT Down 30% YoY, Nuvama Says BUY, Cuts TP

Emami shares are trading in the red on Tuesday morning, slipping nearly 2% to Rs. 517.25 on the NSE, after the company announced a decline in revenue and profit for the second quarter of FY2025-26. The stock has dropped 18% in the past six months and is down 15% so far in 2025.

Emami Q2 Results: Revenue and Profit Decline

For the quarter and half-year ended September 30, 2025, Emami Ltd reported a consolidated revenue from operations of Rs. 798.51 crore, down 10% YoY from Rs. 890.59 crore in the same period last year. The company's profit after tax for the quarter came in at Rs. 148.35 crore, a sharp 29.7% decline compared to Rs. 210.99 crore in the year-ago period.

Revenue from domestic operations stood at Rs. 618.32 crore, while international business contributed Rs. 180.19 crore. The company's earnings per share (EPS) for the quarter were reported at Rs. 3.40.

The FMCG major said that the decline was because of weak performance across key categories, especially its summer portfolio, which faced a double-digit contraction due to lower offtake during the quarter.

Dividend Announcement Despite a weak performance

Despite the subdued financial results, the Board of Directors of Emami announced a first interim dividend of Rs. 4 per equity share. The record date to determine eligible shareholders for the interim dividend has been fixed as November 14, 2025, and the dividend payout is expected to be made on or before December 9, 2025.

Emami Shares Outlook: Nuvama Maintains Buy

Brokerage firm Nuvama Institutional Equities maintained its "buy' rating on Emami but revised its target price downward to Rs. 795 from Rs. 885, citing weaker-than-expected Q2 performance and sustained margin pressures.

According to Nuvama's report, Emami's Q2FY26 revenue and EBITDA fell 10.3% and 28.7% YoY, respectively, broadly in line with market estimates. The brokerage noted that domestic volumes were down around 16% YoY, with the summer portfolio declining 33% YoY due to weak seasonal demand.

"Talc sales plunged 76% YoY, though international business rose 8% YoY in constant currency," Nuvama stated, adding that gross margins remained flat, but EBITDA margins contracted by 577 basis points YoY.

About Emami Ltd

Emami Ltd is a major and fast-growing Indian FMCG company established in 1974. It operates primarily in personal care and healthcare segments with a portfolio of over 550 products centered on natural and Ayurvedic formulations. Renowned household brands include BoroPlus, Navratna, Smart And Handsome (formerly Fair And Handsome), Zandu Balm, Mentho Plus Balm, Fast Relief, and Kesh King.

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