News ArticleMarico Limited Achieves 13% Revenue Growth and 31% PAT Increase in Q2 FY27 Amid Broad-Based Volume Gains
Strong performance led by 10% volume growth in India and 13% international growth, with Parachute reaching 60% market share and Saffola Foods surpassing INR 1,500 crore annualized revenue
Marico Limited announced robust financial results for Q2 FY27, posting a 13% consolidated revenue growth fueled by 10% volume growth in India and 13% growth in international business. The company achieved a 27% rise in EBITDA and a 31% increase in PAT, driven by improved gross margins and strategic product portfolio diversification. Key brands like Parachute and Value-Added Hair Oils showed significant volume gains, while Saffola Foods crossed an annualized revenue run rate of INR 1,500 crores.
Marico Limited
Earnings Call Transcript
Marico Limited reported a 13% increase in consolidated revenue for Q2 FY27, driven by 10% volume growth domestically and 13% constant currency growth internationally. Profit after tax surged 31%, marking the highest profit growth in 50 quarters, supported by improved margins and strategic investments in branding and product diversification.
The company expanded gross margin by approximately 600 basis points year-on-year through favorable portfolio mix, growth in new business segments, and lower copra prices. Advertising and promotion expenses increased by 44% during the quarter to support long-term brand equity and growth in new products, yet EBITDA margin improved by 200 basis points to 18.2%.
Key domestic brands performed strongly: Parachute grew volumes by 13%, achieving a 60% volume market share—its highest in 22 quarters—and maintained positive value growth despite deflationary pricing. Value-Added Hair Oil grew value by 21% and gained 80 basis points of value market share, driven by mid- and premium segment growth, including accelerated scaling of the almond hair oil franchise targeting INR 100 crore annualized revenue run rate by FY28.
Saffola Edible Oil is undergoing a strategic reset focused on long-term profitability, with rationalization of low-margin variants leading to a volume decline but a 6% increase in revenue. Saffola Foods showed a 45% growth rate and exceeded INR 1,500 crore in annualized revenue, with strength in oats, muesli, and soya chunks. Other brands like True Elements, 4700BC, and Cosmix are scaling in line with the company’s plans.
The company’s Project SETU transformation bolstered distribution, increasing direct reach over 1.5 times and nearly doubling rural stockists, contributing an estimated 1-2% incremental volume growth in recent years. Marico is advancing SETU 2.0 focused on AI and technology for premium and digital brand growth.
Highlights
- Consolidated revenue increased 13% in Q2 FY27, with 10% volume growth in India and 13% constant currency growth internationally.
- PAT grew 31%, the highest profit increase in the last 50 quarters.
- Gross margin expanded by ~600 basis points due to portfolio mix and softer copra prices.
- Advertising spend rose by 44%, while EBITDA margin expanded 200 basis points to 18.2%.
- Parachute achieved 13% volume growth and a new peak 60% volume market share despite deflationary pricing.
- Value-Added Hair Oil segment grew 21% in value and gained 80 basis points in market share, accelerating mid- and premium segments including almond hair oil franchise plans to reach INR 100 crore ARR by FY28 and INR 200-250 crore by FY30 .
Key Data Snapshot
What happened
- Marico Limited reported financial results for Q2 FY27 with 13% consolidated revenue growth and 31% profit after tax increase.
- India business volume rose 10%, while international business grew 13% on a constant currency basis.
- EBITDA increased by 27%, supported by gross margin expansion and efficient cost management.
Key details
- Gross margin improved by approximately 600 basis points year-on-year driven by favorable portfolio mix and softer copra prices.
- Advertising and promotion expenses rose by 44% to bolster brand strength and growth segments, yet EBITDA margin expanded by 200 basis points to 18.2%.
- Parachute brand achieved a 13% volume growth and reached a 60% volume market share, its highest in 22 quarters, with positive value growth despite deflationary pricing.
- Value-Added Hair Oil posted 21% value growth and an 80 basis point market share gain, driven by mid- and premium segments including the almond hair oil franchise.
- Saffola Edible Oil is adjusting its portfolio for profitability with some volume decline but 6% revenue growth.
- Saffola Foods crossed an annualized revenue run rate of INR 1,500 crores with 45% growth, led by oats, muesli, and soya chunks.
- Project SETU improved distribution significantly, increasing direct reach by over 1.5 times and doubling rural stockists, contributing incremental volume growth.
Strategic context
- Marico expanded its portfolio across core franchises, foods, premium personal care, and digital-first brands to create a diversified and resilient business model.
- The company is advancing Project SETU 2.0 to leverage AI and technology for enhanced growth and distribution efficiencies.
- Sustained investments in brand equity aim to support long-term growth across existing and new product categories.
Highlights
- Consolidated revenue increased 13% in Q2 FY27, with 10% volume growth in India and 13% constant currency growth internationally.
- PAT grew 31%, the highest profit increase in the last 50 quarters.
- Gross margin expanded by ~600 basis points due to portfolio mix and softer copra prices.
- Advertising spend rose by 44%, while EBITDA margin expanded 200 basis points to 18.2%.
- Parachute achieved 13% volume growth and a new peak 60% volume market share despite deflationary pricing.
- Value-Added Hair Oil segment grew 21% in value and gained 80 basis points in market share, accelerating mid- and premium segments including almond hair oil franchise plans to reach INR 100 crore ARR by FY28 and INR 200-250 crore by FY30 .
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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