Marico Q1 FY27: A strong start with double-digit India volumes and a steady push into Foods and Premium

Marico opened FY27 with one of its strongest quarters in recent years. Consolidated revenue from operations rose 23 percent year on year to INR 3,957 crore. Profitability also moved in step. EBITDA increased 25 percent to INR 819 crore and reported PAT rose 25 percent to INR 630 crore. EBITDA margin improved to 20.7 percent, up 40 basis points versus the prior year quarter.

The quarter stood out not just for the headline growth, but for breadth. The investor presentation highlighted 11 percent domestic volume growth, the highest in 20 quarters. International business delivered 15 percent constant currency growth. Management also emphasized that the portfolio is changing, with Foods and Premium Personal Care including digital-first brands taking a steadily higher share of India revenues.

The quarter in numbers and what changed

Growth was accompanied by disciplined cost control and improving operating structure. Gross margin expanded modestly, supported by softer copra prices, while other inputs such as crude-linked derivatives and packaging showed inflation.

A notable disclosure during the quarter was a reclassification of certain customer-related advertisement and promotional expenses. These were earlier included in Advertising and Sales Promotion, but have now been netted off from Revenue from Operations. The company applied the change retrospectively for Q4 FY26, Q1 FY26, and FY26. Marico stated the reclassification had no impact on EBITDA, net profit, equity, cash flows, or EPS.

India business: Parachute back in double-digit volumes, VAHO stays strong

The India business recorded 11 percent volume growth and 21 percent revenue growth year on year. Management attributed the performance to strong brand momentum and sharper execution across channels, especially general trade and modern trade.

Parachute Coconut Oil remained a key driver. The presentation indicated Parachute contributes 35 percent of India revenues. Parachute delivered 10 percent volume growth, described as the strongest in 20 quarters, and 23 percent value growth. In the concall, management explained that after last year’s sharp input inflation cycle, the company executed a calibrated price reduction, primarily in loyalty packs. They also stressed tighter demand sensing and lower pipeline stock, which helped price changes flow through faster than in prior cycles.

Value Added Hair Oils, shown at 18 percent of India revenues, delivered 22 percent value growth and a 80 basis points gain in MAT value market share. Management said mid and premium hair oils delivered close to high-teens volume growth, supported by premiumisation and distribution expansion. Project SETU was cited as an important enabler for better general trade execution.

Saffola Edible Oils, which is about 16 percent of India revenues as per the presentation, saw a different pattern. The business delivered 7 percent value growth but had a high single-digit volume decline. Management stated this was linked to calibrated pricing actions in response to higher input costs and a conscious decision to rationalise supply of select variants in certain channels to protect threshold profitability. In addition, Marico pointed to cold pressed oils as an attractive growth engine, and management stated the gross margin structure in cold pressed is far superior to the core Saffola edible oil business.

New growth engines: Foods, Premium Personal Care, and Digital-first brands scale up

Diversification is increasingly central to Marico’s medium-term direction. The presentation showed the contribution of Foods and Premium Personal Care including digital-first brands to India revenues rising from 11 percent in FY20 to 23 percent in FY26 and 24 percent in Q1 FY27.

Foods continued to be a growth engine. Marico reported 43 percent value growth and an annualised revenue run-rate of over INR 1,300 crore for the quarter. Management said the core Saffola Foods franchise is still delivering strong double-digit growth, and confirmed that the 43 percent growth includes contributions from acquisitions. When asked about growth excluding acquisitions, management said it was in double digits.

Premium Personal Care reached an annualised revenue run-rate of around INR 450 crore. A key near-term initiative is the push in shampoos. Management called it a national launch and stated an aspiration to reach about INR 100 crore revenue in shampoos in FY27.

Digital-first Premium Personal Care, led by Beardo and Plix, was reported at an annualised revenue run-rate of over INR 1,100 crore. Management commentary focused on improving profitability, stating Beardo is in double-digit profitability and Plix is at high single digit trending toward double digit. The company also indicated that other brands have a path to profitability over the next 12 to 18 months, with cash burn now low.

International business: growth continues despite Bangladesh softness

International business delivered 15 percent constant currency growth in Q1. Performance varied by market.

Bangladesh recorded 4 percent constant currency growth. Management described the moderation as transient, driven by pricing anniversarization and demand softness in a high inflation environment, further accentuated by a sharp rise in fuel and energy prices.

Vietnam grew 27 percent in constant currency terms, and Marico highlighted traction across male and female personal care. The company referenced go-to-market transformation and acceleration in e-commerce as key factors.

MENA delivered 24 percent constant currency growth, supported by strong performance in both Gulf and Egypt. South Africa grew 8 percent, led by hair care, with management naming Black Chic, Just for Kids, and Isoplus as key brands.

The company’s longer-term portfolio shift in international markets was also highlighted. The presentation showed the contribution from non-Bangladesh markets rising from 50 percent of international revenues in FY20 to 59 percent in Q1 FY27.

Margins, inputs, and working capital

Marico reported improved working capital ratios. Net working capital improved to 26 days in Q1 FY27 versus 34 days in Q4 FY26, with debtor days falling to 31 from 39 and inventory days improving to 40 from 43.

Input costs remained mixed. The presentation showed copra prices down 29 percent year to date versus the prior year, supporting gross margin. However, other inputs moved sharply higher, including liquid paraffin up 97 percent and HDPE up 65 percent year to date. Management said crude and vegetable oils continue to show an upward bias and expects input costs to be relatively higher in Q2.

Outlook: clear near-term targets and a 2030 ambition

Marico reiterated specific near-term expectations for FY27. The presentation stated the company expects to sustain high single-digit volume growth in India and deliver mid-teens constant currency growth in international business. It expects double-digit consolidated revenue growth to cross INR 15,000 crore and high-teen consolidated EBITDA growth. Management also stated it aspires to touch 20 percent EBITDA growth.

In the medium term, Marico reiterated its Vision 2030 ambition of achieving over INR 20,000 crore topline by 2030, with a mid-teen EBITDA CAGR. The strategy is anchored around the EDGE framework, covering portfolio expansion, distribution and digitization, profitable growth, and building a future-ready organization.

The quarter’s message was consistent. The company is using strong execution in its core franchises to fund and scale newer engines such as Foods, Premium Personal Care, and digital-first brands. At the same time, it is navigating an input-cost landscape that remains volatile beyond copra. Q1 FY27 sets a solid base, but the next few quarters will test how well Marico can sustain growth while absorbing crude-linked inflation and protecting profitability.