Marico Q2 PAT rises 31% to ₹550 crore; targets ₹15,000 crore revenue in FY27

Marico reported a 27% jump in consolidated EBITDA to ₹709 crore in the September quarter, its strongest operating profit growth in 50 quarters, as easing copra prices and a favourable product mix helped the FMCG maker expand margins despite a sharp increase in advertising spends. Net profit rose 31% to ₹550 crore, marking its highest growth in 51 quarters.

Revenue from operations grew 13% year-on-year to ₹3,897 crore in Q2FY27, while EBITDA margin expanded 200 basis points to 18.2%. The company’s gross margin improved by around 600 basis points year-on-year, supported by copra prices remaining below their peak levels and a favourable portfolio mix.

The performance was backed by sustained demand in the domestic market, where underlying volume growth stood at 10% for another consecutive quarter. Revenue from Marico's India business increased 10% to ₹2,916 crore, with more than 95% of its business gaining or sustaining market share and penetration on a moving annual total (MAT) basis.

Advertising and promotion (A&P) spends, meanwhile, increased 44% year-on-year as the company continued investing in its brands and growth initiatives. The improvement in gross margins gave Marico room to step up these investments while still delivering stronger operating profitability.

For the first half of FY27, consolidated revenue increased 18% to ₹7,854 crore, while EBITDA rose 26% to ₹1,528 crore. Profit after tax grew 28% to ₹1,180 crore.

Saugata Gupta, managing director and CEO of Marico, said the first-half performance reflected the company's evolution into a more resilient and diversified business.

"The strength of our first-half performance underscores Marico’s evolution into a more resilient and diversified business, with several growth engines and a proven ability to deliver strong growth across commodity cycles. Robust momentum across the portfolio and several businesses reaching new highs, alongside multi-quarter high operating profit growth reflect the strength of our franchise and execution. With multiple growth engines firing and sustained investments behind our brands, people and capabilities, we are well positioned to sustain this momentum and build an even stronger Marico for the future," he said.

Foods and premium personal care emerge as growth drivers

Beyond its core hair and edible oils portfolio, Marico is increasingly relying on foods, premium personal care and digital-first brands to diversify its revenue mix.

Its foods portfolio grew 45% during the quarter, crossing an annualised revenue run rate of ₹1,500 crore. Growth was led by Saffola Oats, Muesli and Soya Chunks, while newer brands True Elements, 4700BC and Cosmix recorded sequential acceleration. The company said improved unit economics and a favourable product mix also helped profitability.

Its premium personal care portfolio, which includes hair nourishment, hair cleansing, male grooming and skincare, crossed an annualised revenue run rate of ₹500 crore. The broader digital-first portfolio reported an annualised revenue run rate of around ₹1,150 crore, led by brands such as Beardo and Livon.

In its core portfolio, Parachute Rigids recorded 13% volume growth, its highest in 22 quarters, taking its volume market share to a new high of 60%, after gaining more than 570 basis points. Value-added hair oils registered 21% value growth, marking their sixth consecutive quarter of strong performance.

Internationally, the business delivered 13% constant currency growth, with Vietnam growing 22%, MENA 15%, South Africa 15% and North Africa, C&D and exports 17%. Bangladesh remained relatively subdued, growing 5% amid high inflation and weak consumer demand.

FY27 outlook

Marico expects to deliver revenue growth in the teens this fiscal and comfortably cross the ₹15,000 crore revenue mark, alongside mid-twenties EBITDA growth. It expects double-digit volume growth in India and accelerating international constant currency growth in the second half.

The company is also pushing to increase the contribution of foods and premium personal care to around 27% of India revenue by the end of FY27, with an ambition to take it to 33% by FY30. Its broader Vision 2030 targets consolidated revenue of ₹20,000 crore and a mid-teens EBITDA compound annual growth rate.