Marico (MARICO) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue was ₹3,897 crore, up 13%; India volume growth was 10% and International constant-currency growth was 13%.

• Q2 EBITDA rose 27% to ₹709 crore and reported and recurring PAT increased 31% to ₹550 crore; consolidated net profit was ₹558 crore.

• H1 revenue rose 18% to ₹7,854 crore, EBITDA increased 26% to ₹1,528 crore and PAT grew 28% to ₹1,180 crore; growth was broad-based across businesses.

• More than 95% of India business gained or sustained MAT market share and penetration; Traditional and Organized Trade grew in double digits, with Quick Commerce accelerating.

Financial highlights

• Q2 gross margin expanded ~600 bps YoY; EBITDA margin rose 200 bps to 18.2%, despite A&P spending increasing 44%.

• H1 EBITDA margin was 19.5%, up 130 bps; Q2 PBT was ₹674 crore, up 23%, and H1 PBT was ₹1,464 crore, up 21%.

• Two-year compounded growth was 22% for revenue and 17% for EBITDA; India volume growth was 8% and International constant-currency growth was 16%.

• Material cost was 51.9% of Q2 revenue versus 57.9% a year earlier; PBDIT before A&P was 29.8% versus 25.3%.

Outlook and guidance

• FY27 outlook: teens revenue growth, revenue comfortably above ₹15,000 crore, mid-20s EBITDA growth and double-digit India volume growth; management expects EBITDA growth of at least 24%–25%.

• EBITDA margin could expand 120–150 bps in FY27; profit growth from FY28 is expected to be mid-teens.

• Medium-term construct: high-single-digit India growth, mid-teens International growth and ~3% inflation; ₹20,000 crore revenue by FY29 remains an organic-growth aspiration.

• Growth portfolio is expected to deliver 20%–25% growth with improving profitability; Parachute and Saffola are expected to grow mid-single digits, while value-added hair oils target double-digit value growth.

• Vision 2030 targets include ₹20,000 crore revenue, double-digit revenue growth and mid-teens EBITDA CAGR; India Foods and Premium Personal Care share targeted at ~33% by FY30.