Marico surges after Q2 PAT climbs 31% YoY to Rs 550 cr
Profit before tax stood at Rs 674 crore in Q2 FY27, up 23% from Rs 550 crore in the year-ago quarter.
EBITDA increased 27% year on year to Rs 709 crore from Rs 560 crore. EBITDA margin expanded 200 basis points to 18.2% from 16.2% in Q2 FY26.
Material costs increased 1% to Rs 2,022 crore, while employee costs rose 19% to Rs 259 crore. Other expenses increased 26% to Rs 456 crore. Advertising and sales promotion expenses rose 44% to Rs 451 crore as the company stepped up brand investments.
The India business reported 10% revenue growth to Rs 2,916 crore, supported by 10% underlying volume growth. The company said over 95% of its business gained or sustained market share and penetration on a moving annual total basis. Traditional and organised trade recorded double-digit growth, while quick commerce growth accelerated.
Gross margin expanded around 600 basis points year on year, supported by lower copra prices and a favourable portfolio mix. Copra prices remained range-bound during the quarter at 35% below their peak levels last year. Higher advertising and sales promotion investments supported brand-building and growth initiatives.
The International business sustained strong growth momentum and reported 13% constant currency growth (CCG) and 23% revenue growth in INR terms. Vietnam continued its strong growth momentum and delivered 22% CCG, with healthy growth across the portfolio, and acceleration in e-commerce. MENA delivered 15% CCG, supported by resilient performance in the Gulf on the back of focused execution. South Africa and NCD & Exports business registered strong performance with 15% and 17% CCG respectively.
For the first half of FY27, Marico's consolidated net profit increased 27.71% YoY to Rs 1,180 crore from Rs 924 crore in H1 FY26. Revenue from operations grew 17.73% YoY to Rs 7,854 crore in H1 FY27.
EBITDA rose 26% year on year to Rs 1,528 crore during the first half, while EBITDA margin improved 130 basis points to 19.5%.
On the outlook front, Marico remains optimistic about its growth prospects, backed by strong business fundamentals and disciplined execution. The company expects to deliver revenue growth in the teens in FY27 and comfortably surpass the Rs 15,000 crore revenue milestone. EBITDA is projected to grow at a mid-twenties rate during the fiscal year. Its India business is expected to register double-digit volume growth, while the International business is likely to witness an acceleration in constant currency revenue growth in the second half of FY27.
Over the longer term, Marico aims to sustain a top-quartile volume growth trajectory in India and achieve constant currency revenue growth in the teens in its International business. At the consolidated level, the company aspires to achieve double-digit revenue growth and reach the Rs 20,000 crore revenue milestone, supported by a mid-teens EBITDA CAGR.
The company continues to realign its product portfolio towards premium and higher-margin categories to strengthen growth and profitability. It plans to accelerate the profitable expansion of its Foods and Premium Personal Care segments, including digital-first businesses, with the objective of increasing their contribution to India revenue to around 27% by the end of FY27 and approximately 33% by FY30. Additionally, Marico expects its digital-first businesses to achieve double-digit EBITDA margins by the end of FY27, with further expansion into the teens over the medium term.
Marico's International business continues to demonstrate resilience, supported by premiumisation, portfolio diversification and sustained profitability. The contribution of premium categories to International revenue has increased from around 20% in FY20 to approximately 30% in FY26 and is targeted to reach nearly 40% by FY30. The company is also diversifying its international growth drivers by accelerating business expansion in Vietnam and the MENA region, while scaling up operations in South Africa. Reflecting these efforts, the share of markets outside Bangladesh in the International revenue mix has increased from around 50% in FY20 to 55% in FY26 and is expected to rise further to approximately 65% by FY30.
Marico is one of India's leading consumer products companies in the global beauty and wellness space. It sells products under brands such as Parachute, Saffola, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs etc.
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