Target: ₹620
CMP: ₹503.15
Emami, in its Q3FY26 results, outperformed our estimates across Revenue/EBITDA/PAT levels by 2.2 per cent/6.3 per cent/8.1 per cent. Sequential performance is not comparable due to lower base and seasonality. The company recorded revenues of ₹1,151.8 crore, growing by 9.8 per cent year on year. This was driven by 11 per cent growth (
The company delivered a strong, broad-based performance in Q3, with a sequential improvement following GST-2 related disruptions in the early part of the quarter. Strategic subsidiaries, The Man Company and Brillare, together delivered robust growth of 31 per cent. Gross margin expanded 30 bps to 70.6 per cent, reflecting continued cost discipline, calibrated price hikes and benefits from stable input costs. International business delivered 9 per cent growth, driven by double-digit momentum largely led by SAARC and CIS markets.
The company reiterated its aspiration to return to double-digit growth, while indicating confidence of achieving 8-10 per cent growth in the near term, given that seasonality doesn’t turn adverse. The growth strategy is increasingly skewed towards smaller SKUs, reflecting early signs of rural demand revival. With incremental demand expected to be driven primarily by rural markets, the company sees limited challenges to delivering high single-digit growth.
We retain our valuation multiple of 28x to FY28E EPS of ₹22, arriving at a price target of ₹620 (unchanged).
Published on February 5, 2026