Emami increased its advertising and sales promotion expenditure by 13.2% year-on-year in Q1 FY27, even as the FMCG company reported 15% growth in consolidated revenue for the quarter ended June 30, 2026.
Ad and sales promotion expenses rose to Rs 203.4 crore, up from Rs 179.8 crore in the year-ago quarter. Consolidated revenue from operations climbed to Rs 1,039.2 crore from Rs 904.1 crore, driven by 20% growth in the domestic business. On a like-to-like basis, domestic business grew 12%, with volume growth at 8% after adjusting for the previous year’s Axiom Ayurveda and IncNut Digital numbers. International business declined 12%, which the company linked to disruptions from the West Asia conflict affecting order execution.
Despite inflationary pressures and higher crude oil-linked input costs, EBITDA rose 6% to Rs 226 crore, and profit before tax grew 4% to Rs 195 crore. Profit after tax fell to Rs 138.9 crore from Rs 164.3 crore a year earlier, while gross margins contracted 360 basis points to 65.8% on higher packaging and input costs.
Hair & Scalp Care led category growth at 11%, followed by Skin Care and Health Care at 3% and 2% respectively. Emami’s strategic investments portfolio, including Axiom Ayurveda and IncNut, grew 61% and now makes up 18% of domestic business. Organised channels grew 19%, reaching 32% of domestic business, while quick commerce contributed 35% of e-commerce sales.
During the quarter, Emami made Axiom Ayurveda a wholly owned subsidiary and acquired a majority stake in IncNut, owner of Vedix and SkinKraft.
