Marico Reports Q2 Net Profit Of ₹550 Crore On ₹3,897 Crore Revenue

Market snapshot: Marico Limited announced strong second-quarter financial performance, driven by double-digit domestic volume expansion and operational margin gains. Consolidated revenue grew 12.9% YoY to reach ₹3,897 crore, supported by a 31% rise in net profit to ₹550 crore. EBITDA expanded 27% YoY to ₹709 crore with operating margin reaching 18.19%.

Data Snapshot

• Consolidated Net Profit rose to ₹550 crore, marking a 31% YoY increase from ₹420 crore.
• Consolidated Revenue from Operations grew 12.9% YoY to ₹3,897 crore compared to ₹3,500 crore in the prior year period.
• EBITDA increased 27% YoY to ₹709 crore, with EBITDA margin expanding 209 basis points to 18.19%.
• Domestic volume growth reached 10% YoY, while international business expanded 13% in constant currency terms.

What's Changed

• Consolidated Net Profit increased by 31% YoY from ₹420 crore to ₹550 crore.
• Consolidated Revenue rose from ₹3,500 crore to ₹3,897 crore.
• EBITDA margin expanded from 16.1% in Q2 of the previous fiscal to 18.19%.
• Full-year FY27 EBITDA growth guidance raised to 24–25%.

Key Takeaways

• Broad-based performance with 10% domestic volume growth led by Parachute and value-added hair oils.
• Significant margin widening supported by a 31% YoY drop in input copra costs.
• Foods, Premium Personal Care, and digital-first brands scaled up annual run rates.
• International portfolio maintained momentum with 13% constant currency growth.

SAHI Perspective

Marico's operational trajectory demonstrates strong operating leverage as softer key raw material input costs aligned with healthy consumer demand. The double-digit volume expansion in the domestic core combined with scaling digital and foods verticals provides structural earnings quality.

Market Implications

The outperformance in gross margins and upgraded earnings guidance position Marico favorably within the consumer staples sector, reflecting improved rural demand recovery and execution efficiency.

Trading Signals

Market Bias: Bullish

Strong operational backing evidenced by 10% domestic volume expansion, 27% EBITDA growth to ₹709 crore, and upgraded full-year guidance to 24–25% EBITDA growth.

Overweight: FMCG / Fast-Moving Consumer Goods, Personal Care & Foods

Trigger Factors:

• Sustained domestic volume growth trajectory above 8%
• Copra raw material cost trends in coming quarters
• Scaling of digital-first brands towards target revenue run rates

Time Horizon: Medium-term (3-12 months)

Industry Context

The FMCG sector has been navigating variable raw material dynamics. Lower copra prices have allowed hair oil leaders to reinvest in promotional strategy and advertising, driving volume share gains across core categories.

Key Risks to Watch

• Reversal or sudden spike in key commodity costs such as copra or crude oil derivatives
• Uneven monsoon distribution impacting rural demand recovery in key agricultural pockets
• Geopolitical headwinds affecting supply chain continuity in select international markets

Recent Developments

In recent quarters, Marico announced its Q1 FY27 financial results in August 2026, followed by a positive demand trend operational update in October 2026, culminating in the Q2 FY27 earnings release on November 2, 2026.

Closing Insight

Marico's ability to drive volume-led revenue growth while capturing supply-chain margin expansion reinforces its competitive positioning in consumer staples.

High Performance Trading with SAHI.