Marico Limited reported a strong improvement in profitability for the second quarter of FY27, supported by healthy consumer demand, lower copra prices and improved operating margins. Consolidated revenue from operations increased 13% year-on-year to ₹3,897 crore, while consolidated net profit rose 29.2% to ₹558 crore from ₹432 crore in the corresponding quarter last year.
The company, which owns popular brands such as Parachute, Saffola and Livon, also reported 10% underlying volume growth in its India business. Its international business recorded 13% growth in constant currency. EBITDA increased approximately 27% to ₹709 crore, while the operating margin expanded by 200 basis points to 18.2%, indicating improved profitability despite continuing cost pressures.
Marico Q2 FY27 Results: Key Financial Highlights
Marico’s September-quarter performance reflected stronger earnings growth than revenue growth. Consolidated revenue increased 13%, while EBITDA grew approximately 27%.
The company’s financial results for the quarter ended September 30, 2026, were approved by its board on November 2.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹3,897 crore | ₹3,450 crore | +13% |
| Total income | ₹3,950 crore | ₹3,499 crore | +12.9% |
| Consolidated net profit | ₹558 crore | ₹432 crore | +29.2% |
| Profit attributable to owners | Approximately ₹550 crore | ₹420 crore | Approximately +31% |
| EBITDA | ₹709 crore | ₹560 crore | +26.6% |
| EBITDA margin | 18.2% | 16.2% | +200 bps |
Note: The ₹558-crore figure represents consolidated net profit, while approximately ₹550 crore is the profit attributable to owners of the parent company. These are different accounting measures and should not be treated as conflicting figures.
India Business Records 10% Underlying Volume Growth
Marico’s domestic business remained an important contributor to its quarterly performance.
India business revenue increased 10% year-on-year to ₹2,916 crore. Underlying volume growth also reached 10%, indicating that the improvement was supported by higher product volumes rather than price increases alone.
The company said more than 95% of its business gained or sustained market share and penetration on a moving annual total (MAT) basis.
Traditional retail and organised trade recorded double-digit growth, while quick commerce continued to expand.
Marico’s performance across different sales channels is important because consumer goods companies are increasingly competing for customers through a combination of traditional distributors, supermarkets, e-commerce platforms and rapid-delivery services.
The company’s ability to maintain volume growth across these channels will remain an important factor in its future performance.
Parachute and Saffola Support Consumer Demand
Marico’s major brands continued to contribute to its domestic business.
Parachute Coconut Oil recorded early-teen volume growth during the quarter. The company attributed the performance to brand strength, consumer trust and its distribution capabilities.
Saffola and other food and personal-care products also form part of Marico’s broader effort to diversify beyond its traditional coconut oil business.
The company has been expanding its portfolio across foods, premium personal care and digital-first consumer brands. This strategy is intended to reduce dependence on individual product categories and create additional sources of growth.
However, competition remains intense across the fast-moving consumer goods (FMCG) sector, particularly in categories where consumers can switch between competing brands.
Lower Copra Prices Help Improve Operating Margins
One of the major factors supporting Marico’s profitability was the moderation in copra prices compared with the previous year.
Copra is a key raw material used in coconut oil production. Changes in its prices directly affect the company’s input costs and gross margins.
Reuters reported that lower year-on-year copra prices helped Marico deliver stronger quarterly profit, alongside steady consumer demand.
The company’s gross margin improved by approximately 600 basis points year-on-year. This provided room for higher advertising and promotional spending while still expanding operating profitability.
The EBITDA margin increased from 16.2% in Q2 FY26 to 18.2% in Q2 FY27.
This improvement is particularly notable because the company also increased its investments in brand building.
Marico Increases Advertising Spending by 44%
Marico significantly increased its advertising and sales promotion expenditure during the September quarter.
According to reported figures, advertising and sales promotion spending rose 44% year-on-year to ₹451 crore, compared with a restated ₹313 crore in Q2 FY26.
The company had also increased this spending in the first quarter of FY27.
| Advertising and sales promotion spending | Amount |
|---|---|
| Q2 FY26, restated | ₹313 crore |
| Q2 FY27 | ₹451 crore |
| Year-on-year increase | 44% |
| Q1 FY27 | ₹327 crore |
| H1 FY27 combined | ₹778 crore |
The increased spending indicates that Marico is continuing to invest in brand visibility, consumer engagement and market expansion.
The company has benefited from improved input costs, which have helped support profitability while allowing it to increase marketing expenditure.
A comparison note is important: Marico changed the presentation of certain customer-related promotional expenses from Q1 FY27, deducting them from revenue instead of reporting them under advertising and sales promotion. Historical figures were restated for comparison.
International Business Delivers 13% Constant-Currency Growth
Marico’s international operations also contributed to quarterly growth.
The international business recorded 13% growth in constant currency during Q2 FY27.
The company operates across several international markets and sells products in categories such as personal care, hair care, foods and wellness.
Constant-currency growth removes the effect of exchange-rate movements, providing a clearer picture of underlying business performance in overseas markets.
The international business is an important part of Marico’s diversification strategy, although currency fluctuations and differences in consumer demand across markets can influence reported financial results.
Standalone Profit Rises 72%, but Other Income Plays a Role
Marico’s standalone financial performance also showed substantial growth.
Standalone revenue from operations increased 8.4% year-on-year to ₹2,722 crore, while standalone net profit rose 71.6% to ₹683 crore.
However, the increase in standalone profit was partly supported by higher other income. Other income increased to ₹330 crore from ₹171 crore in the year-ago quarter.
This distinction matters because standalone results cover the parent company, whereas consolidated results include subsidiaries. Investors generally examine consolidated performance to understand the overall group’s operations.
The Bigger Picture
Marico’s Q2 FY27 results highlight the importance of volume growth, input-cost movements and brand investments in determining FMCG profitability. Lower copra prices supported margins, while strong domestic demand helped the company increase sales volumes. Higher advertising spending also indicates that Marico is continuing to invest in its brands rather than relying solely on favourable commodity prices to improve earnings.
The company’s performance also reflects the changing competitive environment in India’s consumer goods market. Traditional retail remains important, but organised trade and quick commerce are becoming increasingly relevant distribution channels. Marico’s ability to maintain market share while expanding its premium and digital-first portfolio will be important for sustaining growth.
Looking Ahead
Marico’s near-term performance will depend on consumer demand, commodity prices and its ability to maintain volume growth across domestic and international markets. The company’s increased advertising expenditure suggests that it is prioritising brand development and market penetration while benefiting from improved input-cost conditions.
Investors will also monitor whether the improvement in gross margins can be sustained if copra and other raw material prices change. The September-quarter results demonstrate stronger profitability, but consistent volume growth, competitive pricing and disciplined brand investments will determine how effectively Marico converts this performance into longer-term growth.
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