Emami Q1 revenue up 15%, quick commerce contributes 35% of e-commerce sales
The FMCG company said digital and artificial intelligence are becoming core enablers of its growth strategy
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Published: Aug 4, 2026 2:31 PM | 3 min read
- Emami Ltd reported a 15% year-on-year increase in consolidated revenue, reaching ₹1,039 crore for Q1 FY27, with domestic business growing 20% and like-to-like growth at 12%.
- Organised channels contributed 32% of domestic business, with modern trade and e-commerce showing strong growth; quick commerce accounted for 35% of e-commerce sales.
- The company faced challenges from rising crude oil prices, inflation, and geopolitical disruptions, leading to a 12% decline in international business, while gross margins were compressed by 360 basis points to 65.8%.
- Emami strengthened its portfolio by acquiring a majority stake in IncNut and increasing its stake in Axiom Ayurveda, with the Strategic Investments segment growing 61% and now contributing 18% to domestic business.
Emami Ltd continued to strengthen its omnichannel play in the first quarter of FY27, with organised channels growing 19% on a like-to-like basis and contributing 32% of its domestic business. Modern trade and e-commerce maintained strong momentum, while quick commerce accounted for 35% of e-commerce sales, reflecting the company’s focus on evolving consumer purchase behaviour.
The FMCG company also said digital and artificial intelligence are becoming core enablers of its growth strategy as it reported a 15% year-on-year increase in consolidated revenue from operations to ₹1,039 crore for the quarter ended June 30, 2026. Domestic business grew 20%, while like-to-like domestic growth stood at 12%, supported by volume growth of 8% after accounting for the previous year’s numbers of Axiom Ayurveda and IncNut Digital.
The quarter was marked by a mixed summer season across India, elevated crude oil prices, inflationary pressures and disruptions arising from the West Asia conflict. While domestic demand remained resilient, international business declined 12% as the conflict affected the company’s ability to execute orders. Emami said it has used the period to strengthen market fundamentals, improve pricing architecture and enhance operational agility, and expects to regain momentum as conditions stabilise.
Hair & Scalp Care was the strongest-performing category during the quarter, growing 11%. Skin Care and Health Care grew 3% and 2%, respectively. The company’s Strategic Investments portfolio delivered 61% like-to-like growth and now contributes around 18% of domestic business.
During the quarter, Emami increased its stake in Axiom Ayurveda, making it a wholly owned subsidiary, and acquired a majority stake in IncNut, strengthening its presence in the personalised beauty and personal care segment through Vedix and SkinKraft.
Rising crude prices and inflation in packaging materials and other key inputs compressed gross margins by 360 basis points to 65.8%. Despite the pressure, EBITDA grew 6% to ₹226 crore, while profit before tax increased 4% to ₹195 crore, aided by disciplined cost management and operational efficiencies.
Commenting on the performance, Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, said, “We delivered another quarter of strong performance despite a challenging operating environment marked by geopolitical disruptions, elevated inflationary pressures and an uneven summer season across markets. Our Domestic Business grew 20%, driving overall revenue growth of 15%, reflecting the strength of our brands and execution capabilities. We are particularly encouraged by the growing contribution of our Strategic Investments portfolio, which now accounts for nearly 18% of our domestic business, reinforcing our strategy of building multiple growth engines alongside our trusted core brands. As we invest for the future, digital and AI are increasingly becoming core enablers of our growth strategy. By embedding these capabilities across our value chain, we are strengthening execution, improving agility and building a future-ready organisation that is well positioned to deliver sustained, profitable growth.”
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