Emami Ltd. reported healthy results for the first quarter of fiscal year 2027, including a significant surge in its new-age business segment [1].
These results indicate the company's ability to scale modern product lines while navigating a volatile economic environment. The strategic shift toward new-age business suggests a diversification of revenue streams to protect against market fluctuations.
N.H. Bhansali, the CEO-Finance, Strategy & Business Development and CFO, said the company expects strong double-digit topline growth [1]. This growth is supported by the performance of the new-age business, which grew 61% year-over-year [1].
To maintain these margins, the company plans to implement price hikes of two% to three% [1]. Bhansali said these adjustments are necessary to offset rising input-cost inflation [1]. The move aims to shield the company's profitability from the increasing costs of raw materials, and logistics.
Emami is balancing this price increase with the momentum gained from its recent expansion. By leveraging the growth in newer segments, the company intends to absorb the inflationary pressures without sacrificing its overall growth trajectory.
“New-age business grew 61% year-over-year”
Emami's strategy reflects a broader trend in the consumer goods sector where companies use high-growth 'new-age' portfolios to mask or offset the inflationary pressures affecting legacy products. By implementing modest price increases of 2% to 3%, the company is attempting to pass costs to consumers without triggering a significant drop in demand, betting that its current growth momentum will sustain the price hike.
