Marico Q2 FY27 Results: Revenue Rises 13% To ₹3,897 Crore, PAT Grows 31% As EBITDA Margin Expands 200 Bps

Marico Ltd reported consolidated revenue from operations of ₹3,897 crore in Q2 FY27, an increase of 13% year on year (YoY). Consolidated profit after tax (PAT) rose 31% to ₹550 crore, reflecting stronger operating performance and improved margins.

The company attributed the improvement in gross margin to softer copra prices and a favourable product mix. It also stepped up advertising and sales promotion spending during the quarter to support its brands and categories.

The Marico share price closed at ₹798.55 on 2 November on the National Stock Exchange (NSE).

Marico Q2 Results: Other Key Highlights

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27% to ₹709 crore. The EBITDA margin expanded to 18.2%, compared with 16.2% in the year-ago quarter, an improvement of 200 basis points.

Gross margin expanded by around 600 basis points year on year, which Marico described as its highest level in 50 quarters. Material costs accounted for 51.9% of revenue, compared with 57.9% a year earlier. The company attributed the improvement mainly to lower copra prices and a favourable product mix.

Profit before tax increased 23% to ₹674 crore. The company also raised advertising and sales promotion (A&P) expenditure by 44% to ₹451 crore. A&P spending represented 11.6% of revenue, against 9.1% in the corresponding quarter last year. Marico said the growth in this expenditure was its highest in 51 quarters.

How Did Marico's India And International Businesses Perform?

Marico's India business recorded revenue growth of 10% during the quarter, supported by underlying volume growth of 10%. The company said more than 95% of its India business gained or maintained market share and penetration on a moving annual total (MAT) basis.

Parachute Coconut Oil recorded 13% volume growth, its highest in 22 quarters, although value growth was around 1%. For Parachute Rigids, volume market share increased by more than 570 basis points to a record 60%.

Value Added Hair Oils recorded 21% value growth and gained 80 basis points in value market share on a MAT basis. This was its sixth consecutive quarter of strong growth. Saffola Edible Oils recorded 6% value growth, although volumes declined in the high single digits.

The foods portfolio grew 45% during the quarter. Marico also said its Premium Personal Care portfolio had reached an annualised revenue run-rate of more than ₹500 crore.

The international business grew 13% in constant currency terms and 23% in rupee terms. Among the markets, Vietnam recorded 22% constant-currency growth, followed by North Africa, the Middle East and other markets (MENA), and South Africa at 15% each. Bangladesh grew 5%, while the NCD and Exports category recorded 17% growth.

What Did Management Say?

Chief Executive Officer Saugata Gupta described the first half as a period in which Marico was becoming a more resilient and diversified business, capable of delivering growth across commodity cycles. He said the company was well placed to sustain its momentum. Management expects Bangladesh's growth to improve gradually over the coming quarters, while continuing to monitor inflation and geopolitical developments.

Marico retained its FY27 growth ambitions, targeting revenue growth in the teens and expecting revenue to comfortably exceed ₹15,000 crore. It is targeting EBITDA growth in the mid-twenties and double-digit volume growth in India.

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