Markets India

Marico's Q2 FY27 net profit surged 31% year-on-year to Rs 550 crore, driven by strong domestic demand and international expansion, according to ET Markets.

Marico Q2 Net Profit Jumps 31% YoY to Rs 550 Crore

Marico reported a 31% YoY increase in consolidated net profit to Rs 550 crore for Q2 FY27, with revenue from operations rising 12% to Rs 3,897 crore. EBITDA grew 27% YoY to Rs 709 crore, and margins expanded to 18.2%, ET Markets reported. The company expects double-digit growth in FY27, citing robust domestic volumes and international expansion. India revenue increased 10% YoY to Rs 2,916 crore, with 95% of its business gaining or sustaining market share. International business grew 13% in constant currency terms, led by 22% growth in Vietnam and 15% in MENA. Gross margin expanded 600 basis points YoY, supported by lower copra prices and a favorable portfolio mix. Advertising and promotion expenditure rose 44% YoY to Rs 1,150 crore, reflecting increased brand investment.

The margin expansion and EBITDA growth underscore Marico's operational efficiency and pricing power, while international growth highlights diversification benefits. The shift toward premium categories and digital-first businesses aligns with long-term strategies to enhance profitability and market share. However, reliance on global markets introduces exposure to geopolitical and inflationary risks. Management faces pressure to sustain momentum amid inflationary and geopolitical risks, while competitors in the FMCG sector may face intensified competition from Marico's premiumization and digital expansion strategies.

Marico's focus on premiumization and digital-first businesses positions it to drive revenue growth, with Project SETU 2.0's AI-led capabilities expected to enhance distribution and sales efficiency. The company aims to achieve Rs 20,000 crore revenue by FY30 with mid-teens EBITDA CAGR. However, sustaining growth will depend on managing international risks and accelerating premiumization. The key uncertainty is whether global market conditions will support the projected 15,000 crore revenue target for FY27.

Marico plans to scale digital-first businesses and expand premium categories internationally, with Project SETU 2.0 rolling out in Bangladesh and other markets.

Marico's strong Q2 performance highlights strategic execution, but global market conditions will determine its ability to meet growth targets.

Topics: Marico, Q2 Results, Net Profit, EBITDA Growth, India Economy, International Markets, FMCG Sector, Premiumization, Digital Business, Project SETU 2.0

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Source: ET Markets