Emami shares trade lower for third straight day; slips 8% on heavy volumes

Emami share price was trading 5 per cent lower at ₹582.15, as compared to a 0.43 per cent rise in the BSE Sensex, as of 2:20 PM

Emami shares price today

Shares of Emami continued to trade under pressure, falling 8 per cent to ₹562.50 on the BSE in Monday's intra-day trade amid heavy volumes. The stock price of the personal care products company is trading lower for the third straight day, falling 10 per cent during the period.

 

With the three-day decline, Emami's stock price has corrected 35 per cent from its 52-week high level of ₹859.20 touched on September 6, 2024. It had hit a 52-week low of ₹509.25 on March 4, 2025.

 

At 02:51 PM, Emami was trading 5 per cent lower at ₹582.15, as compared to a 0.43 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped multiple-fold, with a combined 8 million equity shares representing 1.8 per cent of the total equity of Emami changing hands on the NSE and BSE. 

 

Emami growth outlook

Emami's April to June 2025 quarter (Q1FY26) performance was hit by unseasonal and early rains that led to a 17 per cent decline in summer products, while pain management grew 17 per cent year-on-year (Y-o-Y), aided by monsoon-led demand. Core domestic business (ex-, talcum and prickly heat powder) grew 6 per cent Y-o-Y, led by 3 per cent volume growth.

 

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, Emami said.

 

The International Business delivered modest growth despite ongoing macroeconomic and geopolitical uncertainties across key markets such as Bangladesh, the Middle East, and Africa.

 

However, looking ahead, Emami expects the macro environment to gradually improve, supported by a buoyant monsoon, stabilising inflation, and ongoing consumption recovery.

Sector outlook

Despite facing turbulence, the fast-moving consumer goods (FMCG) sector is poised for a positive turnaround in the years ahead. The sector is starting to exhibit signs of recovery after experiencing subdued growth due to high inflation, weak urban demand and the escalating cost of raw materials. Key factors, such as easing inflationary pressures and a gradual recovery in demand, contribute to an optimistic outlook, hinting at a potential rebound in the FMCG sector.

 

This economic growth will serve as a strong tailwind for the FMCG sector, driven by the rising aspirations of India’s middle class and the increasing purchasing power. Rural demand, traditionally a significant driver of the FMCG market, is expected to show a marked improvement, supported by favourable monsoon conditions in FY26. Further, the tax benefits announced in the Union Budget will offer additional support to consumers, the company said. 

Brokerages' view on Emami

Distribution expansion, higher investment in brands, continued new product launches and recovery in rural markets will aid revenue growth in FY26, while a rise in OPM will likely be driven by expansion in gross margins due to the softening of input prices, price hikes and cost reduction initiatives, Mirae Asset Sharekhan said.

 

With gradual demand recovery underway, Emami’s initiatives related to distribution expansion, new launches, and focused marketing spending are expected to accelerate its revenue growth, Motilal Oswal Financial Services said in its Q1 result update.