Marico shares climb 8% as Q2 results beat estimates on strong demand

The company's performance was supported by a moderation in copra prices and steady consumption demand, Reuters reported. Marico, which owns brands such as Parachute and Saffola, had said in its quarterly business update that copra prices remained around 35 percent below their peak levels during the second quarter. Copra, the dried kernel of coconut, is a key raw material for coconut oil and related products.

It is an important cost component for Marico, with its Parachute coconut oil brand being a major contributor to the company's business. The company's revenue from operations increased 12.95 percent to Rs 3,897 crore in the second quarter of FY27, compared to Rs 3,450 crore in the corresponding period a year ago. "India business delivered 10 percent underlying volume growth, marking another quarter of robust volume growth.

The International business sustained healthy momentum, recording 13 percent constant currency growth (CCG)," said Marico in its earnings statement. Total expenses stood at Rs 3,276 crore in the September quarter of FY27, up 11 per cent year-on-year. The company's India business delivered a revenue growth of 9.83 percent to Rs 2,916 crore in Q2 FY27. "Gross margin expanded ~600 bps YoY, supported by moderation in the copra prices and a favourable portfolio mix,” said Marico, adding this also helped in expansion in gross margin by “200 bps to 18.2 percent, while Ebitda grew 27 percent, its strongest growth in 50 quarters.”

Moreover, net profit of the India business grew 31 percent, “marking the highest growth in the last 51 quarters”. Its revenue from the international market was up 23.39 percent at Rs 981 crore in the September quarter. Total consolidated income of Marico increased 12.88 percent to Rs 3,950 crore in the quarter. In the first half (H1) of FY27, Marico’s total consolidated income was at Rs 7,955 crore, up 17.4 percent YoY.

Commenting on the results, the company’s MD and CEO Saugata Gupta said, "The strength of our first-half performance underscores Marico’s evolution into a more resilient and diversified business, with several growth engines and a proven ability to deliver strong growth across commodity cycles. Robust momentum across the portfolio and several businesses reaching new highs, alongside multi-quarter high operating profit growth reflect the strength of our franchise and execution."

Over the outlook, the company reaffirmed to achieve double-digit revenue growth and surpass the Rs 15,000 crore mark, while delivering mid-twenties Ebitda growth in FY27. "India business is poised to deliver double-digit volume growth and International business should see accelerating constant currency growth in the second half of FY27," it said.