Emami's ad spend declines 2.1% to Rs 179 crore in Q1 FY26, focus shifts to strategic investments

Emami Limited on Thursday posted its first-quarter results for the fiscal year 2026. The FMCG brand’s consolidated profit increased by 9.07% to Rs 164.26 crore in the April-June quarter FY26 compared to Rs 150.60 crore.

However, the revenue from operations of the company marginally declined during the quarter. According to the stock exchange filing of Emami, the company's revenue from operations stood at Rs 904 crore in Q1 FY26 compared to Rs 906 crore in Q1 FY25.

The advertisement and sales promotions expenditure declined by 2.1% to Rs 179.75 crore year-on-year. In Q1 FY25, Emami spent Rs 183.69 crore on ads and promotions.

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The urban discretionary consumption continued during the quarter, accompanied by a short summer season and early monsoon arrival remained the key headwinds in Q1 revenue.

Emami's gross margins expanded by 170 bps to 69.4%, driven by improved cost efficiency.

In a media statement, Emami said, "The quarter witnessed persistent pressure on urban discretionary consumption, while rural demand displayed signs of recovery. However, an unusually soft and shortened summer, caused by unseasonal rainfall and the early arrival of the monsoon, negatively impacted consumption across the company's summer-centric portfolio".

Apart from the talc/PHP portfolio, Emami's core domestic business delivered a 6% revenue growth. The talcum and prickly heat powder (PHP) category, which is highly reliant on peak summer sales declined by 17% due to adverse weather conditions.

However, on a 2-year Compound Annual Growth Rate (CAGR) basis, the category grew at 13%, Emami added.

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The company's international business delivered modest growth across key markets such as Bangladesh, the Middle East, and Africa.

"The company remains committed to long-term value creation in these regions through focused portfolio strategies and localized innovations," Emami said.

According to Harsha V Agarwal, Vice Chairman and Managing Director of Emami, strong monsoon conditions, easing inflation and potential interest rate reductions will be supporting a recovery in consumption.