Marico (MARICO) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue grew 23% year-over-year to ₹3,957 crore, with EBITDA and PAT up 25%, marking the highest profit growth in 28 quarters.

• India business saw 11% volume growth and 21% revenue growth, driven by core brands and new growth engines, with over 96% of the business gaining or sustaining market share and 99% maintaining or growing penetration.

• International business delivered 15% constant currency growth, led by Vietnam (27%), MENA (24%), and South Africa (8%), with Bangladesh moderating at 4%.

• Net profit for the quarter stood at ₹652 crore, compared to ₹513 crore in Q1 FY26, reflecting robust profitability improvement.

• The quarter included the impact of the Skinetiq acquisition in Vietnam and the integration of Beardo and Just Herbs businesses.

Financial highlights

• EBITDA margin improved by 40 bps to 20.7%, with profit before tax at ₹790 crore and EPS at ₹4.86.

• Gross margin expanded 30 bps year-over-year, aided by softer copra prices and favorable mix.

• Foods segment reported 43% growth, crossing ₹1,300 crore annualized run rate; premium personal care reached ₹450 crore ARR; digital-first brands exceeded ₹1,100 crore ARR.

• Advertising and sales promotion expenses grew 25% year-over-year, now 8.3% of revenue.

• Net working capital improved to 26 days from 34 days in Q4FY26.

Outlook and guidance

• Targeting double-digit revenue growth to surpass ₹15,000 crore for FY27 and high teens EBITDA growth, aspiring to reach 20% for the year.

• India expected to deliver high single-digit volume growth; international business to see mid-teens constant currency growth.

• Medium-term vision to reach ₹20,000 crore topline by FY30, with double-digit revenue CAGR and mid-teen EBITDA CAGR.

• Tax rate guidance: ~18% for FY27, 19-20% for FY28.

• Strategic focus on premiumization, digital expansion, and reducing commodity-linked portfolio share.