Volume Momentum Meets Margin Tailwinds
Marico enters Q2 results with India volume growth hitting double digits for a second consecutive quarter, while gross margin tailwinds and pricing power set the stage for 25%+ EBITDA growth. Street consensus across 40 analysts: Buy.
Marico enters Q2 FY27 with momentum intact. The company has signalled double-digit revenue growth on the back of sustained India volume momentum—a second consecutive quarter above 10%—and margin tailwinds from easing raw-material costs and pricing actions taken across the portfolio. The Street expects consolidated revenue of ~₹4,000 Cr, with EBITDA expanding 25%+ to ₹703 Cr and PAT near ₹529 Cr. The print will hinge on whether volume growth holds, whether pricing discipline holds amid competitive pressure, and whether the gross-margin uplift tracks the consensus 150-bp expansion.
What to Expect
~₹4,000 Cr
14.9% YoY growth; Street consensus across 40 analysts
~₹703 Cr
25.5% YoY growth; margin 17.6% vs 16.1% prior year (+150 bps)
~₹529 Cr
26% YoY growth anchored in EBITDA expansion and lower finance costs
~10% YoY
Second consecutive double-digit quarter; Parachute ~14% YoY (21-quarter high)
Strong print: A beat on volume (>10% India growth) with margin holding above 17.5%, signalling that pricing power and gross-margin improvement are both real and not just one-time. Q2 would then set up Q3–Q4 as a story of high-twenties profit growth and return to mid-teens return-on-equity. Weak print: Volume growth dips below 8% or margins compress below 17.0%, signalling either competitive pressure or faster raw-material inflation. That would force a guidance reset and trigger a 5–8% stock correction.
On Track?
Yes. In Q1 FY27 (June quarter), Marico delivered ₹3,957 Cr revenue (+22.9% YoY) and ₹630 Cr PAT (+25% YoY) against a ₹3,800 Cr guidance. The full-year guidance remains for mid-teen FY27 profit growth; Q2 hitting 26% PAT growth keeps the company ahead of plan. The company itself confirmed double-digit India volume growth in its October 5 trading update—the second consecutive quarter—and flagged gross-margin improvement as a tailwind. As long as volumes stay >8% and margins stay near 17.0%, full-year guidance is safe.
What the Street Says
Since Last Quarter
Operational updates: On October 5, Marico signalled double-digit India volume growth and strong momentum in Parachute (14% YoY) and value-added hair oils (23% YoY expected). International business tracking ~15% YoY in constant-currency terms. Capital actions: October 5 saw Marico raise stake in subsidiary Satiya Nutraceuticals from 60% to 84.09% for ₹1,012 Cr. Routine acquisition discipline; no material debt trigger. Governance: Independent director Rajeev Vasudeva retires October 31 after term completion; routine refresh. ESG: Company announced 89.3% reduction in operational emissions intensity since FY13; leadership ratings across CRISIL, NSE, and SES ESG—signals investor credential-building ahead of result. No pledges, no insider selling flagged. Board meeting set for November 2 to approve results.
Watch List
1 · India volume growth trajectory
Street expects ~10% YoY. A beat to >11% would signal demand staying resilient; a miss to <8% would raise questions on channel inventory or competitive share loss. This is the leading indicator for FY27 profit guidance reset.
2 · Gross margin and pricing durability
Consensus expects 150-bp margin expansion to 17.6%. Monitor management commentary on raw-material cost trends (coconut oil, palm, castor) and pricing elasticity—is the margin gain structural or one-quarter tailwind?
3 · Segment breakdown and guidance
Pay close attention to Parachute (flagship, ~30% of revenue), VAHO (hair care adjacency, growing 20%+), and international business (15% of revenue, targeting mid-teens growth). Any segment missing plan or guide cut = risk event.
Marico is set for a clean quarter. Double-digit volumes have shown legs through Q1 and into Q2 guidance commentary, margin tailwinds are real, and the Street is aligned. The company sits 12% below ATH on a neutral technical setup—neither panic nor euphoria. A beat on volumes and margins will push the stock toward the ₹1,000–₹1,050 target; a margin miss or volume decel below 8% will risk a 5–8% pullback. Watch volumes, listen hard on margin sustainability, and keep an eye on full-year guidance. Result day: November 2, 2026.
Marico Q2 FY27: consolidated PAT up 29% YoY to ₹558 Cr as margins expand, revenue +13%
PAT +29.17% YoY · revenue +12.96% · margins expanding · inline vs street
₹3,897 Cr
+12.96% YoY
₹558 Cr
+29.17% YoY
14.13%
+1.9pp YoY
₹4.24
Marico's consolidated PAT rose 29% YoY to ₹558 Cr (₹550 Cr attributable to owners, EPS ₹4.24) on revenue of ₹3,897 Cr, up 13% YoY against the restated year-ago base of ₹3,450 Cr. Sequentially both lines eased from Q1 FY27's ₹3,957 Cr revenue and ₹652 Cr PAT — down 1.5% and 14% respectively — reflecting the seasonally softer quarter and the input-cost pressure management had flagged coming into it.
Q2 FY-2027 vs prior quarters
Operating profit (PBT plus finance cost) of ₹698 Cr grew 24% YoY, landing almost exactly on the ~₹700 Cr, mid-20s growth the company itself guided in its October 5 pre-quarter business update. Net profit margin expanded to 14.3% from 12.5% a year ago but compressed from 16.3% in Q1 FY27, as elevated crude and vegetable-oil costs — called out explicitly in the prior concall as a Q2 risk even with copra staying ~35% below its peak — weighed on the sequential trend. India revenue grew 9.8% YoY to ₹2,916 Cr, with the company's own update citing double-digit underlying volume growth, ahead of the high-single-digit pace guided for the full year. International revenue rose 23.4% YoY to ₹981 Cr, though part of that reflects the April 2026 consolidation of Skinetiq (Vietnam skincare), which management itself notes makes the period not fully comparable to prior quarters.
The stock went into the print at ₹798.55, up 1.6% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
FY27: Double-digit revenue growth to cross ₹15,000 Cr easily; high-teens EBITDA growth, aspiring for 20%. India: high single-digit volume growth. International: mid-teens constant currency growth. Q2 expects higher input costs (crude/veg oils); copra range-bound ~35% below peak.
— This quarter: beat
Against the FY27 guidance laid out on the August concall — double-digit revenue growth crossing ₹15,000 Cr, high-teens-to-20% EBITDA growth, and high-single-digit India volumes — the quarter beats on volume and EBITDA growth pace, while tracking almost exactly to the more specific figures the company pre-announced on October 5. Nuvama, reviewing that update, called the revenue and EBITDA trajectory in line with its estimates; the actual print does not deviate materially from that read. No post-result press release commentary beyond the pre-quarter business update was available for this filing. Standalone PAT of ₹683 Cr (EPS ₹5.27) runs ahead of the consolidated figure only because standalone other income includes ₹272 Cr of dividends from subsidiaries that eliminate on consolidation — the consolidated number is primary here. Separately, the board used the quarter to raise the Satiya Nutraceuticals (Plix) stake to 84.09% via an October 5 agreement, with the remaining 14.09% due to complete in July 2027.
W1
Input-cost trajectory: crude/vegetable-oil and liquid paraffin costs flagged for Q2 — watch whether operating margin recovers toward Q1's ~20.7% in H2
W2
FY27 revenue guidance of crossing ₹15,000 Cr (double-digit growth): H1 FY27 consolidated revenue is ₹7,854 Cr, confirm H2 pace stays on track
W3
International constant-currency growth guided at mid-teens vs 23.4% YoY reported — watch organic vs Skinetiq-driven contribution split next quarter