Emami Q2 FY26 ad spend rises 7.3% YoY to Rs 156.39 crore

New Delhi: FMCG major Emami reported a 7.3% rise in advertisement and sales promotion expenses to Rs 156.39 crore in Q2 FY26, up from Rs 145.72 crore in Q2 FY25. 

On a QoQ basis, the company’s adex was down 13.0% from Rs 179.75 crore in Q1 FY26. Altogether, the company’s adex stood at Rs 336.14 crore in the first half of FY26.

Emami reported consolidated revenue of Rs 799 crore for the September quarter (Q2 FY26), a decline of 10% year-on-year, as trade deferred purchases ahead of GST rate cuts and unseasonal rains hit summer categories. 

Profit after tax stood at Rs 148 crore, down 30% year-on-year, with EBITDA at Rs 179 crore, down 29%. 

Gross margin remained stable at 71%, reflecting cost discipline despite lower topline. 

The company said the Government’s reduction of GST rates to 5% across key FMCG categories is a structurally positive reform for the long term. About 88% of Emami’s core domestic portfolio benefited from rate cuts (from 12%/18% to 5%), taking the 5% GST portfolio coverage in core domestic business to around 93%. 

Emami revised prices across 293 products and 497 SKUs, passing on ~7%–13% reductions to consumers. However, in September, channel partners and consumers delayed purchases in anticipation of lower MRPs, while distributors liquidated higher-cost inventory, moderating sales. The timing also deferred winter pipeline loading.

Excluding GST-impacted categories, non-impacted portfolio cohorts grew 10% in the quarter. International business rose 8% despite macro and geopolitical headwinds. The summer portfolio faced a second challenging quarter as excessive rains hurt offtake in talc and prickly-heat categories on a high base.

Emami continued premiumisation and innovation. “Smart & Handsome” expanded with 12 new SKUs across sunscreens, shower gels, under-eye creams, deodorants, face serums and sheet masks. “Kesh King” relaunched as “Kesh King Gold” with refreshed packaging, sharper positioning and an upgraded formulation enriched with Gro Biotin and Plant Omega 3-6-9. The Zanducare range added Good Gut Cleanse & Detox Shots and Acidity & Bloating Relief Tablets. Internationally, the company extended Creme 21 with the Xtra Bright range (Elixir, Day/Night creams, Facewash, Scrub, Micellar Water) and new body lotions, strengthening its skincare presence.

Harsha V Agarwal, Vice-Chairman and Managing Director of Emami, said, “We are happy that over 90% of our core domestic portfolio now falls under the lowest GST rate of 5%, making our products more affordable and accessible to consumers. The quarter’s performance was a temporary impact of trade disruptions linked to the pending GST revision and weak summer.”

He added, “With improving market sentiment and a favourable season ahead, we remain confident of strong growth in the coming quarters. Our bottom line remains stable, with costs well managed despite global supply chain challenges due to geopolitical issues. To meet our growth aspirations, going forward, we will continue to strengthen our portfolio through premiumisation and value-added innovation to stay aligned with the evolving preferences of our consumers.”

Mohan Goenka, Vice-Chairman and Whole-Time Director, Emami, said, “October marked a clear turning point, with trade sentiment rebounding and deferred winter loading recovering, putting us on a solid footing for the second half of the year. I am also pleased to share that our non-GST impacted portfolio delivered 10% growth in Q2 signifying that consumer demand remained intact. These gains, coupled with normalisation of trade post-GST reforms, and the positive of impact of strategic interventions position us to sustain profitable growth in the second half and strengthen our foundation for long-term value creation and market leadership.”