Fast-moving consumer goods major Marico Limited released its quarterly business update for the second quarter ended September 30, 2026 (Q2 FY27) on Monday, October 5, 2026, signaling double-digit underlying volume growth in the domestic market alongside expanding gross margins.
The Mumbai-based consumer company noted that consolidated revenue grew in double digits, while consolidated operating profit (EBITDA) is projected to advance in the mid-twenties percent. Backed by strong momentum across core hair care franchises, scaling digital-first brands, and favorable raw-material pricing, management indicated that the company is on track to surpass its near-term guidance across key financial metrics for the first half of FY27.
Key takeaways
- Double-digit domestic volume growth: Underlying volume growth in India touched double digits during Q2 FY27, extending the domestic volume recovery seen in Q1.
- Flagship brands drive volumes: Flagship Parachute Coconut Oil is projected to post early-teens volume growth, while Value-Added Hair Oils (VAHO) is expected to report growth in the twenties for the sixth consecutive quarter.
- Operating profit expands mid-twenties: Bolstered by gross margin expansion, consolidated operating profit is projected to increase in the mid-twenties (~24%–26%), outpacing top-line growth.
- Copra price tailwind: Domestic copra prices remained rangebound at approximately 35% below their historical peaks, providing substantial gross margin expansion on a year-on-year basis despite crude-derivative inflation.
- International business in double digits: The overseas portfolio maintained momentum, delivering constant-currency growth in the teens, led by Vietnam, the Middle East and North Africa (MENA), and South Africa.
- Guidance beat anticipated: Management noted that operational momentum across H1 FY27 positions the company to surpass earlier near-term revenue and margin expectations.
Operating volume breakdown: Parachute and VAHO lead the domestic basket
Marico’s performance in the July–September quarter was anchored by its core domestic personal care and hair nourishment portfolios:
DOMESTIC FRANCHISE PERFORMANCE IN Q2 FY27:
Parachute Coconut Oil:
[██████████████████████████] Early-Teens Volume Growth (~11%–13%)
Value-Added Hair Oils (VAHO):
[██████████████████████████████████████] 20%+ Value Growth (6th Straight Quarter)
International Business (Constant Currency):
[██████████████████████████████] Mid-Teens CCG (~14%–16%)
Saffola Edible Oils:
[████████████] Mid-Single-Digit Revenue Growth (Price-Led; Volumes Subdued)
1. Parachute Coconut Oil
The company’s largest revenue contributor demonstrated pricing power and volume resilience, delivering early-teens volume growth. The performance follows steady market share gains in rigid packs across rural and urban markets, supported by conversion from loose, unbranded coconut oils to branded packs as loose-oil price gaps narrowed.
2. Value-Added Hair Oils (VAHO)
The value-added hair oil category sustained its multi-quarter turnaround, projecting value growth in the twenties percent for the sixth consecutive quarter. The franchise benefited from:
- Market share gains in the premium almond and lightweight hair-oil tiers.
- Expanded direct rural and semi-urban distribution via Project SETU, Marico’s direct-reach augmentation program.
- Consumer trade-up into mid-to-premium hair treatments.
3. Saffola Edible Oils: Margin over volume
In contrast to the hair care portfolio, Saffola edible oils reported mid-single-digit price-led revenue growth, accompanied by a modest contraction in physical volume. Management intentionally rationalized low-margin bulk variants to defend threshold margins amidst volatile international import tariffs on crude and refined vegetable oils.
4. Foods and Digital-First Premium Personal Care
The diversification portfolio—comprising Saffola Oats, True Elements, Plix, and direct-to-consumer digital acquisitions like Beardo and Just Herbs—continued to grow in line with annual scaling targets. The company reiterated its medium-term objective to compound the Foods business at 25%+ CAGR through FY27.
| Segment / Division | Q2 FY27 Operating Trajectory | Growth Category / Primary Catalyst |
| India Business (Overall) | Double-Digit Volume Growth | Rural pickup, festive restocking, core brand pull |
| Parachute Rigids | Early-Teens % Volume | Brand equity, unbranded-to-branded conversion |
| Value-Added Hair Oils | 20%+ Value Growth | Sixth straight quarter of 20%+ expansion; Project SETU reach |
| Saffola Edible Oils | Mid-Single-Digit Revenue | Price-led; margin-defense prioritization |
| Foods & Digital-First | Steady Double-Digit Track | Scaling toward multi-year ARR targets (Plix, Beardo, Oats) |
| International Business | Teens % Constant Currency | Led by MENA, Vietnam, and South Africa; Bangladesh steadying |
Source: Compiled from Marico Limited regulatory quarterly business updates.
Margin dynamics: Copra tailwind vs. crude-linked inputs
The primary catalyst behind the projected mid-twenties growth in operating profit is an expanding gross margin spread:
INPUT COST COUNTERWEIGHTS:
Tailwind (Deflationary):
[ Copra Prices ] ────────► Rangebound at ~35% below peak levels
- Expands gross margins in Parachute & Coconut portfolio
- Creates operating leverage for higher A&P spends
Headwind (Inflationary):
[ Crude Derivatives ] ───► Moderate cost increases in packaging polymers & LLP
- Light Liquid Paraffin (LLP) input costs edge higher
- Offset by pricing power and premium product mix
- Copra deflation: Copra, which accounts for approximately 40% to 50% of Marico’s raw material basket, remained rangebound at roughly 35% below historic highs. Because Marico held pricing steady on its primary SKUs, the input price stability translated into a wider gross profit spread per unit sold.
- Reinvestment in brand equity: Rather than allowing all gross margin gains to flow straight to the bottom line, Marico channeled a portion into Advertising and Sales Promotion (A&P) investments to support festive product launches and expand market reach.
- Net operational leverage: Even after elevated promotional outlays, the operational leverage generated by double-digit volume throughput is expected to drive mid-twenties EBITDA growth, expanding operating margins compared to the 16.1% recorded in Q2 FY26.
Rural recovery and the broader FMCG context
Marico’s volume acceleration aligns with broader industry data indicating a consumption recovery in rural and semi-urban India.
Recent retail intelligence from tracker Bizom documented that overall FMCG value growth accelerated to a six-quarter high of 8.6% in Q2, led by a 10.6% surge in rural retail off-take. Marico’s double-digit volume print suggests that staple personal care products are benefiting from:
- Normalized monsoon precipitation across central and southern agricultural belts.
- Higher rural household liquidity supporting everyday personal care essentials.
- Direct distribution expansion into interior villages, capturing market share from unorganized regional operators.
What to watch next
- Audited Q2 FY27 earnings release: Marico will publish its audited second-quarter financial statements later in October or early November 2026, confirming exact revenue figures, EBITDA margins, and net profit after tax.
- Secondary festive off-take: Because the peak festive shopping period (Navratri, Dussehra, and Diwali) shifted deeper into October and November in 2026, analysts will monitor whether primary pipeline dispatches from Q2 clear efficiently through retail counters in Q3.
- Copra price trajectory into winter: Commodity watchers will track copra flush arrivals in southern states to gauge whether input cost tailwinds will persist into the second half of FY27.
Frequently asked questions
What are the key highlights of Marico’s Q2 FY27 business update?
Marico reported double-digit underlying volume growth in its domestic India business, double-digit consolidated revenue growth, and operating profit expansion in the mid-twenties percent, driven by strong performance in Parachute and Value-Added Hair Oils.
Why is Marico’s operating profit growing faster than revenue?
Operating profit is growing faster than revenue due to gross margin expansion. Copra prices (Marico’s primary raw material) remained rangebound at roughly 35% below their historical peaks, creating favorable input costs that offset minor increases in crude-linked packaging materials.
How did Parachute and Value-Added Hair Oils perform in Q2?
Parachute Coconut Oil recorded volume growth in the early teens, while Value-Added Hair Oils delivered value growth in the twenties percent for the sixth consecutive quarter.
How did the international business perform?
Marico’s international operations recorded constant-currency growth in the teens during the quarter, led by strong performance in Vietnam, the Middle East and North Africa (MENA), and South Africa, with Bangladesh showing sequential signs of stabilization
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