Marico reported a 31% rise in consolidated net profit to Rs 550 crore for the July-September quarter of FY27, helped by cheaper copra and a better product mix. The results were announced on Monday, November 2.
Revenue from operations grew 12% from a year earlier to Rs 3,897 crore, up from Rs 3,450 crore in the same quarter last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 27% to Rs 709 crore from Rs 560 crore. The EBITDA margin widened by 200 basis points to 18.2% from 16.2% a year ago.
Gross margin improved by about 600 basis points, as copra prices eased and the product mix turned favourable. The company also raised advertising and promotion spending by 44%.
India business
India revenue rose 10% to Rs 2,916 crore, with underlying volume growth of 10%. Marico said over 95% of its business either gained or held market share and penetration on a moving annual total basis. Traditional and organised trade grew in double digits, while quick commerce kept gaining pace.
Parachute Rigids saw volumes rise 13%, its best showing in 22 quarters. Revenue grew only about 1%, because earlier price increases had run their course and prices were cut at the start of the year to share lower copra costs with consumers. The brand’s volume market share rose by more than 570 basis points to a new high of 60%.
Value-added hair oils grew 21% in value, the sixth straight quarter of growth. The portfolio gained 80 basis points in value market share. Marico credited innovation in mid-range and premium products, its Project SETU distribution overhaul and brand spending. Almond hair oils grew at a faster pace.
Saffola edible oils posted 6% revenue growth even though volumes fell by a high single-digit rate. Premium products, led by cold-pressed oils, did better than the rest of the range. The company is trimming the supply of some variants as part of a reset to improve long-term profitability. Towards the end of the quarter, it also passed on the benefit of lower import duties on vegetable oils through pricing.
Foods and premium personal care
The foods portfolio grew 45% and has crossed an annualised revenue run rate of Rs 1,500 crore. Saffola Foods grew at an early-teens rate, led by oats, muesli and soya chunks. Saffola Oats remains the leader in its category. True Elements, 4700BC and Cosmix kept scaling up.
Premium personal care, which includes Beardo, Livon Serums and Parachute Advansed Protein Shampoo, has crossed an annualised run rate of Rs 500 crore. The digital-first portfolio is at about Rs 1,150 crore on the same basis.
International business
The international business grew 13% in constant currency and 23% in rupee terms.
– Bangladesh: 5% constant currency growth, a slight sequential improvement amid weak demand, high inflation and a high base. Marico expects gradual improvement.
– Vietnam: 22%, helped by broad-based growth and faster e-commerce sales.
– Middle East and North Africa: 15%, supported by the Gulf markets.
– South Africa: 15%.
– NCD and Exports: 17%.
Copra prices stayed range-bound at about 35% below last year’s peak. Prices of crude-linked derivatives and vegetable oils continued to rise on geopolitical developments and weather worries.
Outlook
Marico said demand held up despite a volatile environment, and it remains optimistic on consumption while watching inflation and geopolitical risks. Based on first-half performance, it expects revenue growth in the teens for FY27 and to comfortably cross Rs 15,000 crore in revenue. It expects EBITDA growth in the mid-twenties.
The India business is expected to deliver double-digit volume growth, and international constant currency growth is expected to accelerate in the second half.
Under its Vision 2030 strategy, Marico aims for revenue of Rs 20,000 crore with a mid-teens EBITDA compound annual growth rate. It wants Foods and Premium Personal Care, including digital-first businesses, to make up about 27% of India revenue by the end of FY27 and 33% by FY30. Digital-first businesses are expected to reach double-digit EBITDA margins by the end of FY27.
In international markets, premium categories rose from about 20% of revenue in FY20 to 30% in FY26, and are expected to reach 40% by FY30. Markets outside Bangladesh are expected to account for 65% of international revenue by FY30, against about 55% in FY26.
The company also announced Project SETU 2.0, which will use AI for assortment selling, sales-force enablement and store execution, with a separate go-to-market plan for Foods and Premium Personal Care. The SETU model has already been taken abroad, with encouraging results in Vietnam and an early rollout in Bangladesh.
Ahead of the results, Marico shares closed almost flat on the NSE at Rs 800, down 0.18%.
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