Marico (MARICO) Q2 25/26 earnings summary

Executive summary

• Achieved 7% volume growth in Q2 FY26 despite GST disruptions, with India business revenues up 35% year-over-year and international up 19% in INR terms; over 95% of the business gained or sustained market share.

• Distribution expansion and Project Sethu/SETU initiatives strengthened market presence, especially in upgraded towns and quick commerce, which nearly doubled year-over-year.

• Both India and international businesses delivered strong performances, with international growth led by Bangladesh, Vietnam, and MENA, while South Africa is expected to recover in H2.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2025, reviewed by statutory auditors with no material misstatements.

• Focus remains on executing strategic priorities, improving India volume growth, and maintaining double-digit constant currency growth overseas.

Financial highlights

• Q2FY26 consolidated revenue from operations was ₹3,482 crore, up 31% year-over-year; H1FY26 revenue was ₹6,741 crore, up 27%.

• Q2FY26 consolidated EBITDA grew 7% year-over-year to ₹560 crore, with an EBITDA margin of 16.1% (down 350 bps year-over-year); recurring PAT rose 8% to ₹420 crore.

• Parachute brand saw flattish volume but 60% year-over-year pricing growth due to hyperinflation in copra prices; copra prices have since declined 15% from July 2025 highs.

• Foods portfolio crossed INR 1,100 crore ARR, with Saffola oats gaining share and new muesli range showing early promise.

• Digital-first portfolio exited the quarter with over INR 1,000 crore ARR, on track for 2.5x FY24 ARR by FY27 and targeting double-digit EBITDA margins.

Outlook and guidance

• Revenue growth in India expected to remain strong in H2, even as pricing actions in Parachute and Saffola partially annualize.

• Targeting around 25% consolidated revenue growth for the year, with double-digit EBITDA growth in H2 as margin pressures ease.

• Foods portfolio is on track to become ~8x FY20 scale by FY27, with a 25%+ CAGR expected.

• Digital brands expected to reach double-digit operating margins by FY27.

• Confident in achieving INR 20,000 crore revenue by 2030.