Emami Ltd Faces Q2 Profit Dip Amid GST and Weather Challenges

Emami Ltd reported a 29.7% decline in Q2 profit, impacted by trade disruptions due to anticipated GST cuts and excessive rains. Despite challenges, a GST rate reduction to 5% is noted as positive for growth. The company anticipates a stronger performance with improving market conditions.

Emami Ltd, a prominent homegrown FMCG company, reported a significant 29.7% decline in its consolidated profits after tax, totalling Rs 148.35 crore for the second quarter ending September 30, 2025. This downturn was attributed to temporary trade disruptions caused by the anticipation of a GST rate reduction and excessive rains affecting select product lines.

The Kolkata-based firm's consolidated revenue fell to Rs 798.51 crore from Rs 890.59 crore in the same period last year, primarily due to deferred purchases and inventory liquidation by distributors. The GST rate cut from 12-18% to 5% is anticipated to spur long-term demand, benefiting 88% of Emami's core domestic portfolio.

Senior executives at Emami expressed optimism for future growth, citing an encouraging market outlook and an expected strong performance in forthcoming quarters. They noted that October marked a turning point with improving trade sentiments and recovery in the company's winter portfolio.

(With inputs from agencies.)