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Homegrown FMCG player Emami Ltd on Monday reported a 29.7 per cent decline in consolidated profit after tax at Rs 148.35 crore in the second quarter ended September 30, 2025, impacted by temporary trade disruption in expectation of GST rate cut and excessive rains affecting certain product categories.
The Kolkata-based company had reported consolidated profit after tax of Rs 210.99 crore in the second quarter last fiscal, Emami Ltd said in a regulatory filing.
Consolidated revenue from operations in the second quarter was lower at Rs 798.51 crore, as compared to Rs 890.59 crore in the year-ago period, it added.
Total expenses in the quarter under review stood at Rs 619.98 crore, as against Rs 640.12 crore in the same period a year ago, the company said.
Emami said the GST rate reduction from 12 per cent or 18 per cent to 5 per cent is structurally positive, laying the foundation for long-term demand acceleration, as nearly 88 per cent of its core domestic portfolio benefited from the reduction.
At the same time, its implementation caused temporary trade disruptions in September.
Trade channels and consumers deferred purchases in anticipation of lower MRPs, while distributors focused on liquidating higher cost inventory, resulting in a short-term moderation in sales, the company added.
“The timing of the GST rate change also coincided with the peak winter pipeline build-up, leading to a deferment in the company’s winter portfolio loading,” it said.
The board of directors of the company also declared an interim dividend of Rs 4 per share for the financial year 2025-26.
Further, Emami said its summer portfolio navigated a second consecutive weather-affected quarter, with excessive rains impacting offtake in talc and prickly heat categories on a high comparative base.
“We are happy that over 90 per cent of our core domestic portfolio now falls under the lowest GST rate of 5 per cent, 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,” Emami Ltd vice chairman and managing director, Harsha V Agarwal, said.
Looking ahead, he said, “With improving market sentiment and a favourable season ahead, we remain confident of strong growth in the coming quarters.”
Emami Ltd vice chairman and whole-time director, Mohan Goenka said October marked a clear turning point, with trade sentiment rebounding and deferred winter loading recovering, putting the company on a solid footing for the second half of the year.
