Marico Ltd, an FMCG goods manufacturer, reported on Monday that its consolidated net profit grew by 29.16% to 558 crore rupees for the September quarter of fiscal year 27. This growth was driven by a strong increase in domestic market sales volumes.
According to regulatory filings, the company's net profit in the same quarter of the previous fiscal year was 432 crore rupees. Furthermore, operating revenue increased by 12.95%, reaching 3,897 crore rupees in Q2 FY27, compared to 3,450 crore rupees the previous year. The growth was supported by increased domestic sales volumes.
In its earnings report, Marico indicated that the business in India demonstrated a 10% growth in base sales volume, marking another quarter of confident volume growth. The international business maintained healthy momentum, showing a 13% growth in constant currency (CCG).
Total expenses for the September quarter of FY27 amounted to 3,276 crore rupees, which is 11% higher than last year. Marico owns brands such as Saffola, Parachute, and Livon.
Business Growth Details
The business in India generated revenue of 2,916 crore rupees in Q2 FY27, corresponding to a revenue growth of 9.83%. The company noted that fundamental indicators remain healthy, supported by high sales volumes and a wide increase in market share and penetration. Over 95% of the business either increased or maintained its market share and penetration based on MAT.
By sales channels, traditional and organized trade showed double-digit growth, alongside accelerated development in Quick Commerce. Gross profit margin expanded by approximately 600 basis points (bps) year-on-year, supported by moderate copra prices and a favorable product mix. This also contributed to a gross profit increase of 200 bps to 18.2%, while EBITDA grew by 27%, the strongest growth in 50 quarters. Additionally, the net profit of the Indian business increased by 31%, the highest growth in the last 51 quarters.
Revenue from the international market grew by 23.39% to 981 crore rupees in the September quarter. It was noted that Bangladesh showed a 5% growth in constant currency (CCG), representing a modest sequential improvement despite weakening consumer demand amid persistent high inflation and a comparison effect from a high base. Growth is expected to gradually improve in subsequent quarters.
Vietnam continued to show strong growth, posting 22% CCG, with good portfolio development and acceleration in e-commerce. The MENA region business reached 15% CCG, supported by sustained operations in Gulf countries through targeted execution. South Africa and the NCD & Exports business registered strong results—15% and 17% respectively.
Marico's total consolidated revenue increased by 12.88% to 3,950 crore rupees in the quarter. For the first half (H1) of FY27, the company's total consolidated revenue was 7,955 crore rupees, up 17.4% year-on-year.
Management Comments and Product Segments
Commenting on the results, CEO Sougata Gupta stated that the strength of the first-half results underscores Marico's transformation into a more resilient and diversified business, possessing multiple growth drivers and a proven ability to deliver strong growth across various product cycles. The sustained momentum across the portfolio and the achievement of new highs by many businesses, alongside multi-quarter operating profit growth, reflects brand strength and execution efficiency.
During the quarter, the Parachute Rigids product maintained a strong pace, with sales volume accelerating to 13%, the highest growth in the last 22 quarters. However, revenue growth remained nearly flat due to the impact of price reductions implemented at the beginning of the year to pass on benefits from moderating copra prices.
The value-added hair oil segment, including brands like 'Parachute Advansed, Nihar Naturals, and Hair & Care', demonstrated its sixth consecutive quarter of stellar growth, recording 21% growth in value and an 80 bps increase in value-based market share on a MAT basis. FMCG food portfolio products grew by 45%, exceeding the annual revenue run rate of 1,500 crore rupees. Similarly, the premium personal care segment also showed strong growth. The digital portfolio also demonstrated good growth, supported by the brands Beardo and Plix.
The portfolio encompassing premium hair nutrition, hair cleansing, men's grooming, and skincare exceeded the annual revenue run rate by 500 crore rupees, while the digital portfolio reported an annual run rate of 1,150 crore rupees.
Regarding outlook, the company reaffirmed its goal of achieving double-digit revenue growth and surpassing the 15,000 crore rupee mark, as well as ensuring EBITDA growth in the mid-twenties in FY27. It was stated that the Indian business is poised to deliver double-digit volume growth, and the international business is expected to see accelerated growth in constant currency in the second half of FY27.
At the close of the day on Monday, Marico shares on BSE closed 0.36% lower, at 797.90 rupees per share.
