Emami shares gain 5% on in-line Q3 results; stock targets revised higher

Shares of Emami Ltd. rose over 5 per cent on Thursday after the company's third-quarter revenue in the current financial year (Q3-FY26) came in line with estimates, prompting some analysts to raise their target prices.

 

The company's stock rose as much as 5.06 per cent during the day to ₹514 per share, a day after it rose over 9 per cent. The stock pared gains to trade 3.2 per cent higher at ₹505 apiece, compared to a 0.60 per cent decline in Nifty 50 as of 12:23 PM. 

 

Shares of the company rose for the fourth straight session and currently trade at 13 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 4.5 per cent this year, compared to a 2 per cent advance in the benchmark Nifty 50. Emami has a total market capitalisation of ₹22,173.54 crore. 

 

Emami Q3 results 

Emami reported a 14.5 per cent year-on-year (Y-o-Y) increase in consolidated net profit to ₹319.48 crore for the October-December quarter. Consolidated revenue from operations in Q3FY26 rose 9.8 per cent Y-o-Y to ₹1,151.81 crore.

 

Commenting on the performance, Harsha V Agarwal, vice chairman and managing director of Emami Limited, said Q3FY26 delivered strong, broad-based performance, with sales growth of 11 per cent driven by healthy volume expansion of 9 per cent.

 

“Our strategic priorities around purposeful innovation, premiumisation and portfolio expansion continue to translate into tangible outcomes. Ebitda grew by 13 per cent, with margins expanding 110 basis points to 33.4 per cent, reflecting operational excellence and disciplined cost management,” he said.

Analysts on Emami earnings

Emami's Q3 revenue was in line with expectations, prompting Antique Stock Broking to reiterate its long-term positive stance on the company. The brokerage cited an improving product mix compared with FY25 and a sharper focus on rural markets through low unit packs as key growth drivers.

 

Antique said management is targeting double-digit growth across portfolios, aided by a lower GST rate and deeper rural penetration. It also expects a stronger summer season in the coming quarters, supported by a low base in the fourth quarter and steady rural demand, boosting the summer portfolio. The brokerage maintained its 'Buy' recommendation on Emami and raised its target price to ₹671 from ₹635.

 

Emami delivered a steady performance in Q3, with management commentary pointing to a recovery in growth, according to Motilal Oswal. The brokerage said resilient demand in rural markets, along with the company’s initiatives around distribution expansion, new product launches and higher marketing spends, should help sustain revenue growth.

 

Motilal Oswal added that a healthy seasonal outlook and a broad-based recovery in consumption, coupled with comfortable valuations, bode well for the company. The brokerage reiterated its 'Buy' rating on Emami with a target price of ₹650.

 

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