Marico Limited Targets Double-Digit Q2 Revenue, Mid-Twenties Profit

Marico Limited expects double-digit consolidated revenue growth and operating profit growth in the mid-twenties for Q2 FY27, led by double-digit India volume growth and strong international performance. Zee Business estimates place revenue at Rs 4,000 crore, up 14.9% year-on-year from Rs 3,482 crore.

What has Marico said about its Q2 FY27 performance?

Marico said its consolidated revenue is expected to grow in double digits for the quarter ended September 30, 2026, while operating profit is projected to rise in the mid-twenties. The company released the provisional business update on October 5, before the Board approves and publishes its unaudited quarterly financial results.

The update indicates that domestic demand remained resilient despite a volatile operating environment. Marico said growth was supported by its core portfolios, digital-first businesses and international operations. Its India business delivered double-digit underlying volume growth, which is a key indicator for an FMCG company because it measures sales expansion excluding the impact of pricing changes.

Zee Business estimates consolidated revenue of Rs 4,000 crore for Q2 FY27, compared with Rs 3,482 crore in the year-ago quarter. That would represent 14.9% growth. The estimate also indicates operating profit of about Rs 700 crore, against Rs 560 crore in Q2 FY26, broadly consistent with the company's guidance for mid-twenties profit growth.

Marico has not disclosed final quarterly revenue, profit or advertising expenditure for the September quarter. Its business update is therefore an operational indication rather than the final financial result.

Which India businesses drove Marico's volume growth?

Marico's India business was led by Parachute Coconut Oil and Value Added Hair Oils, while Foods and Premium Personal Care also sustained their growth momentum. The company said Parachute Coconut Oil recorded volume growth in the early teens during Q2 FY27.

Marico attributed Parachute's performance to the brand's equity, consumer trust and supply-chain advantage. Zee Business had estimated Parachute oil volume growth at 7% to 9% year-on-year, while the company subsequently indicated early-teen growth in its quarterly update.

Value Added Hair Oils recorded growth in the twenties for the sixth consecutive quarter. Marico said investment in the mid and premium segments, expanded direct reach through Project SETU and growth in the almond category supported this performance. Zee Business had projected growth of 17% to 20% for the segment.

Saffola Oils reported mid-single-digit price-led growth. However, volumes declined as Marico rationalised supply of select variants and focused on threshold profitability. Foods and Premium Personal Care, including digital-first brands and the shampoo portfolio, continued to expand alongside the company's traditional core franchises.

What do the key Q2 FY27 figures show?

The available company commentary and Zee Business estimates point to broad-based growth, although final numbers will be confirmed only with the quarterly results. Revenue growth is expected to be supported by domestic consumption, portfolio expansion and international operations.

In the first quarter of FY27, Marico reported consolidated revenue of Rs 3,957 crore, up 23%, and profit after tax of Rs 630 crore, up 25%. The Q2 update suggests that the company expects the first-half operating momentum to continue, though the Q2 final figures have not yet been disclosed.

Why are margins expected to improve despite higher marketing spending?

Marico expects gross margins to improve year-on-year because copra prices remained about 35% below their peak levels and the portfolio mix was favourable. Copra is an important raw material for the coconut oil business, making its price movement relevant to the company's profitability.

The company also noted that crude-linked derivative costs were edging up. Nevertheless, it expects operating profit growth in the mid-twenties, indicating that raw-material conditions and business mix are expected to offset part of the cost pressure.

At the same time, Marico significantly increased advertising and sales promotion spending in Q2 FY27 to support brand building and growth initiatives. The exact Q2 expenditure has not been disclosed. In Q1 FY27, it spent Rs 327 crore on advertising and sales promotion, up 25% from a restated Rs 261 crore in Q1 FY26. This spending represented 8.3% of Q1 consolidated revenue.

The company is continuing this high-intensity marketing approach while maintaining its profitability focus. The Saffola Oils strategy illustrates that balance: Marico accepted lower volumes after reducing supplies of selected variants to protect threshold profitability.

How does the update affect investors and the FMCG sector?

For investors, the update places attention on the quality of Marico's growth rather than revenue alone. Double-digit underlying volume growth in India, early-teen Parachute growth and continued expansion in Value Added Hair Oils indicate that the company is reporting volume-led momentum across important domestic categories.

International operations also contributed to the outlook, with constant-currency growth in the teens. Marico cited Vietnam, the Middle East and South Africa as contributors, while Bangladesh showed marginal sequential recovery amid inflationary pressures. Currency movements can affect reported consolidated results, which is why the company separately refers to constant-currency growth.

The update also reflects broader FMCG conditions where companies are pursuing growth through premium offerings, wider distribution and new product categories while managing volatile commodity costs. Marico's spending through Project SETU, its focus on mid and premium hair oils, and its investment in digital-first brands are part of this operating approach.

Conclusion

Marico's Q2 FY27 business update points to a quarter of volume-led growth in India, supported by Parachute Coconut Oil, Value Added Hair Oils and newer portfolios. With revenue expected to rise in double digits and operating profit projected to increase in the mid-twenties, the company expects improved margins despite significantly higher brand-building expenditure.

The next key event is the Board-approved release of Marico's unaudited Q2 FY27 financial results, which will confirm revenue, operating profit, margins and advertising expenditure. Investors will also watch whether the company sustains its near-term guidance beat while monitoring copra prices, crude-linked costs and consumption conditions.