Emami's digital share of ATL jumps from 20% to 55% in five years

Emami's marketing mix has undergone a significant shift over the past five years, with digital now accounting for more than half of the company's total ATL investments. The share of digital in ATL spending rose from 20% in FY22 to 55% in FY26, according to the company's AGM presentation. At the same time, organised channels and quick commerce are becoming a larger part of its domestic business.

In FY26, Emami's non-seasonal portfolio accounted for 56% of domestic business, compared with 50% in FY20. Its new-age and mainstream portfolio also increased its share from 7% to 21% over the same period.

Digital becomes the largest part of ATL
Digital's share of Emami's overall ATL spending has risen steadily every year since FY22: 20% in FY22, 28% in FY23, 35% in FY24, 42% in FY25 and 55% in FY26. The company said the increase allows it to target consumers more precisely, measure engagement and improve the efficiency of its brand-building investments.

The change is taking place alongside a wider shift in consumer discovery and purchase. Emami's presentation identifies digital channels, e-commerce, quick commerce and social media as increasingly important points through which consumers discover, evaluate and purchase products. For Emami, therefore, the digital shift is happening alongside changes in its sales channels rather than in isolation.

Legacy brands are being extended beyond their original categories
The second major change is taking place at the brand level. Emami is expanding several of its established brands into new formats and adjacent categories. Zandu's pain-management portfolio now includes gels, sprays and roll-ons in addition to its traditional balms. Kesh King has expanded into serums, organic solutions, shampoo and an onion range.

BoroPlus, historically associated with antiseptic cream and winter use, has been extended into aloe vera gel, lip balm, soft cream and lotions. Dermicool has expanded into soaps, shower gels, prickly-heat spray and Dermicool HER. Smart And Handsome has also been repositioned to widen its presence in male grooming.

The strategy is aimed at increasing the number of categories, formats and usage occasions associated with existing brands.

Emami's own category and brand penetration data also points to room for growth. Kantar HHP data cited in the AGM presentation shows category penetration substantially ahead of brand penetration across brands including Zandu and Mentho Plus Balms, BoroPlus Antiseptic Cream, Navratna Cool Oils, Kesh King Oil and Smart And Handsome Cream.

The company is also supporting this expansion through product development. It invested ₹31 crore in R&D in FY26, with a 166-member R&D team, and launched 58 new products and variants during the year.

Reducing exposure to seasonal categories
The portfolio expansion also has a business rationale. A weak and unseasonal summer affected demand for Emami's talc and prickly-heat powder portfolio during FY26. The company said its broader portfolio helped offset some of that impact, with domestic business excluding the affected portfolio continuing to grow.

The composition of the business has consequently become less seasonal. The non-seasonal portfolio increased from 50% of domestic business in FY20 to 56% in FY26. Emami's presentation says more than half of its domestic portfolio is now non-seasonal, despite the Dermicool acquisition in FY23.

The share of new-age and mainstream brands has also risen from 7% to 21% over the same period. This points to a broader portfolio strategy: reduce reliance on individual seasons and categories while creating additional growth through newer brands and extensions.

Organised channels and quick commerce gain ground
The shift in marketing is happening alongside a change in where Emami's products are being sold. In Q1 FY27, organised channels grew 19% and accounted for 32% of domestic business. Quick commerce accounted for 35% of e-commerce sales during the quarter.

Domestic business grew 20% in Q1 FY27, with like-for-like growth at 12%, while consolidated revenue increased 15% to ₹1,039 crore. The numbers put greater significance on Emami's digital investments. With quick commerce becoming a meaningful part of e-commerce sales, the company's brands are increasingly operating across general trade, organised retail, e-commerce and quick commerce.

The AGM material does not break down advertising spends by individual digital platforms or channels, but the increase in digital ATL investment and the growth of digital commerce are happening in parallel.

AI moves into sales and distribution
Emami's digital strategy also extends beyond advertising. The company is working on three technology initiatives: Project SETU, SalesCode.AI and Analytics Hub. Project SETU is focused on supply-chain planning and distributor visibility, while SalesCode.AI is intended to improve field-force productivity. Analytics Hub is being built as an enterprise-wide platform for data and AI-driven decision-making. All three are expected to be completed during FY27. This puts AI and data closer to the commercial side of the business, covering sales, distribution and decision-making rather than only consumer-facing marketing.

Strategic investments become a larger growth engine
Emami is also increasing its exposure to newer consumer businesses. The company acquired majority stakes in Axiom Ayurveda, which operates the AloFrut brand, and IncNut Digital, bringing personalisation-led brands Vedix and SkinKraft into its portfolio during FY27.

Its strategic investment portfolio contributed around 6% of consolidated turnover in FY26. Emami expects that contribution to rise to around 16% in FY27 and approximately 25% by FY30.

The portfolio already includes investments such as The Man Company and Brillare. According to the Chairman's speech, Emami's rationale for investing in founder-led consumer businesses is that these companies bring innovation, consumer insights and category relevance, while Emami can provide marketing, distribution, R&D, capital and operational support.

That means the strategic investment portfolio is expected to become a considerably larger part of Emami's overall business rather than remaining a small collection of minority investments.

International business and local execution
International business contributed approximately 18% of consolidated revenue in FY26 and spans more than 70 countries. Growth moderated to 3% for the year after disruptions related to the West Asia conflict affected shipping, freight costs and manufacturing in the region. Emami said it responded by strengthening distributor partnerships, increasing localisation and sharpening execution across modern trade and digital channels.

The business is becoming broader, but profitability remains the test
Emami reported consolidated FY26 revenue of ₹3,779 crore and EBITDA of ₹964 crore, with an EBITDA margin of 25.5%. In Q1 FY27, EBITDA grew 6% to ₹226 crore despite higher crude oil prices and packaging cost inflation. Profit Before Tax grew 4% to ₹195 crore.

The numbers show that Emami's transformation is taking place across several fronts at once: media is moving towards digital, legacy brands are entering adjacent categories, organised channels and quick commerce are expanding, AI is being introduced into sales and operations, and strategic investments are expected to account for a much larger share of revenue. The next test for the company will be whether these newer categories, channels and businesses can add growth while maintaining the profitability and brand equity of its established portfolio. For now, the AGM numbers show an Emami that is becoming less dependent on seasonal categories and more diversified across brands, channels and consumer businesses.