Marico Ltd has reported strong momentum for Q2 FY27, projecting double-digit revenue growth and mid-twenties operating profit expansion. The company’s core Parachute and Value Added Hair Oils brands drove domestic volume growth, while international markets maintained solid performance. Despite rising crude-linked input costs, stable copra prices and favorable portfolio mix are supporting margin acceleration. Management expects to surpass its near-term financial targets, signaling a positive growth trajectory for the consumer goods major.
Marico Projects Strong Q2 Performance with Double-Digit Revenue Growth
Revenue expected to grow in double digits while operating profit eyes mid-twenties expansion.
Reader Takeaway: Strong volume-led growth in core categories and stable copra prices offset rising input costs for Marico.
What just happened
Marico has issued a strong performance update for the second quarter of FY27, forecasting double-digit revenue growth and operating profit growth in the mid-twenties. The company is currently outperforming its initial guidance for the first half of the year.
Why this matters
The results highlight the resilience of Marico's core portfolio. The Parachute Coconut Oil brand continues to deliver early-teen volume growth, while the Value Added Hair Oils category has sustained growth in the twenties for six consecutive quarters. This consistent performance indicates strong brand equity and successful execution of expansion initiatives like 'Project SETU'.
Cost Dynamics and Margins
While crude-linked derivative prices are rising, Marico is benefiting from copra prices remaining approximately 35% below peak levels. These stable raw material costs, combined with a favorable product mix, are expected to drive gross margin expansion. The company has aggressively increased its advertising and sales promotion (ASP) spending to sustain this momentum.
International Business
The international segment is showing strong health with constant currency growth in the teens. Markets in Vietnam, the Middle East, and South Africa are key drivers of this performance, while the Bangladesh operations have shown signs of sequential improvement.
Risks to watch
Investors should monitor the impact of persistent inflation on consumer demand, particularly in the premium segments. Additionally, while the current copra price environment provides a tailwind, volatility in global commodity prices remains a long-term input cost risk.
What to track next
Watch for the full audited financial results to confirm these internal projections. The sustainability of domestic volume growth amid competitive pricing environments in the Saffola oil segment will be a key performance indicator.