Marico Expects Double-Digit Revenue Growth in Q2 on Strong Domestic, International Biz

New Delhi: FMCG major Marico Ltd on Monday said it expects consolidated revenue to grow in double digits in the September quarter, driven by strong performance across its domestic and international businesses.

Domestic demand remained ‘resilient’ during the quarter, even as the operating environment stayed volatile through the period, and it remains ‘optimistic’ on consumption trends.

However, it also said it is closely monitoring the evolving inflationary conditions.

“The India business continued its strong momentum, delivering another robust quarter with underlying volume growth touching double digits,” said the business update for the second quarter of FY27.

Its Parachute Coconut Oil sustained “strong performance” and accelerated further with early teens volume growth. Similarly, Saffola Oils delivered mid-single-digit price-led growth, though volumes declined as the company focused on maintaining profitability and rationalising supplies of select variants.

Its Value Added Hair Oils segment, which has brands such as Parachute Advansed, Nihar Naturals and Hair & Care, delivered growth in the twenties for the sixth consecutive quarter, aided by premiumisation, distribution expansion and strong demand in the almond oil segment.

Moreover, Marico’s Foods and Premium Personal Care businesses, including digital-first brands and shampoo, continued to register healthy growth, further supporting the company’s diversification strategy.

Marico’s international business, which typically contributes about a quarter of the FMCG major’s consolidated revenue, posted constant currency growth in the teens during the September quarter, led by strong performances in Vietnam, the Middle East and South Africa.

“Bangladesh witnessed a marginal sequential improvement, even as it continued to lap a high base amid persistently elevated inflation,” it said.

Marico expects its total consolidated revenue “to grow in double digits” with strong performance across its core, digital and international portfolios.

On the cost front, Marico said prices of crude-linked derivatives remained elevated during the quarter, while copra prices stayed range-bound and were around 35 per cent below their peak levels.

The company expects a strong year-on-year expansion in gross margins, supported by favourable product mix and lower copra costs. However, it increased advertising and sales promotion (ASP) investments significantly to support brand-building and growth initiatives.

“Overall, we expect operating profit to grow in the mid-twenties,” Marico said.

The company said its first-half FY27 performance positions it to surpass its near-term guidance across key financial parameters.

Marico reaffirmed its medium-term goal of delivering sustainable, profitable volume-led growth, supported by the strength of its core brands and the scaling of new growth engines.

“With a strong performance through the first half of the year, we are likely to surpass our near-term guidance across key financial parameters, anchored in the sustained strength of our core franchises and the scale-up of new growth engines,” it said.

In August, Marico reported a 27 per cent year-on-year rise in consolidated net profit to Rs 652 crore in the June quarter of FY27, led by strong volume growth in the domestic market, enhanced topline and better margin realisation.

The company had posted a consolidated net profit of Rs 513 crore in the corresponding quarter of the preceding fiscal, Marico Ltd said in a regulatory filing.

The homegrown FMCG firm’s revenue from operations increased 22.85 per cent to Rs 3,957 crore in the June quarter, compared to Rs 3,221 crore in the year-ago period.

Shares of Marico were trading at Rs 792.60 apiece on BSE, up 1.60 per cent from previous close.

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