Emami plans another 2–3% price hike as crude-linked input costs rise
After implementing annualised price increases of 3–4%, Emami plans a further 2–3% hike over the next two quarters. The Kolkata-based FMCG company expects strong double-digit FY27 growth, supported by domestic demand and its fast-growing new-age portfolio.
What happened
Emami plans calibrated additional price hikes of 2-3% over two quarters after 3-4% increases, to offset crude-linked input inflation. The FMCG company targets
Key facts
- Strong double-digit revenue growth expected in FY 2026-27
- 3-4% annualised price increases already implemented
- Additional 2-3% price increase planned over the next two quarters
- 15% revenue growth in April-June 2026
- 20% domestic business growth including strategic investments
- 12% like-for-like domestic growth
- New-age portfolio contributes 18% of domestic revenue
- New-age portfolio delivered 61% like-for-like growth in Q1
- Strategic investments targeted to contribute 25% over the medium to long term
- Market capitalisation: ₹17,782.74 crore
- Shares at ₹398.90
- Shares declined more than 34% over the past year
Why this matters
Emami’s faster-growing new-age portfolio and pricing resilience make adjacent premium, health and digital-first FMCG assets attractive routes to strengthen its growth mix.
What to watch
- Crude oil, HDPE/LDPE, packaging-material and freight-cost trends over the next two quarters.
- Management commentary on volume growth versus price-led growth, especially in rural and mass-market categories.
- NielsenIQ or channel data on category volumes, market share and downtrading after price implementation.
- Pricing actions from Dabur, Marico, HUL and regional competitors in overlapping personal-care and healthcare categories.
- Rural demand indicators, monsoon progress, food inflation and disposable-income trends.
- Gross-margin and A&P-to-sales movement in quarterly results, indicating whether pricing is being retained or reinvested.
- Implement category- and pack-specific hikes rather than a uniform portfolio-wide increase, protecting high-elasticity mass SKUs with smaller packs.
- Increase grammage/pack-price innovation and targeted trade schemes to retain entry-price consumers without broadly discounting.
- Prioritise advertising and distribution behind faster-growing new-age brands, using improved gross margins to build premium and digital-led categories.
- Tighten procurement, packaging and freight-cost hedging to reduce exposure to further crude-linked inflation.
- Monitor competitor pricing closely; if peers delay hikes, use selective promotions in vulnerable categories rather than abandoning margin targets.