Mumbai: Marico reported a strong improvement in its financial performance for the September quarter of FY27, with consolidated net profit rising 31% year-on-year to Rs 550 crore. The consumer goods company had posted a net profit of Rs 420 crore in the corresponding quarter of the previous financial year.
The company also recorded a significant improvement in operating profitability, with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 26.6% to Rs 709 crore, compared with Rs 560 crore in Q2 FY26. The EBITDA figure was marginally higher than the market estimate of Rs 702 crore.
A key highlight of the results was the expansion in operating margins. Marico’s operating margin improved by 200 basis points to 18.2% during the quarter, compared with 16.2% in the year-ago period. The improvement indicates that the company was able to increase its operating profitability at a faster pace than revenue growth.
However, revenue performance was slightly below market expectations. Consolidated revenue from operations increased 13% year-on-year to Rs 3,897 crore from Rs 3,450 crore in Q2 FY26. The figure was lower than the Bloomberg estimate of Rs 3,974 crore.
The September-quarter results reflected growth in both the company’s domestic and international businesses, with overseas operations recording a faster increase in revenue. Segment results also improved across both divisions.
Marico Q2 FY27 results: Key financial figures
Marico’s September-quarter performance showed double-digit growth in revenue, stronger profit expansion and improved operating margins.
The key financial figures for Q2 FY27, compared with the corresponding quarter of the previous financial year, are:
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Consolidated net profit | Rs 550 crore | Rs 420 crore | Up 31% |
| Consolidated revenue | Rs 3,897 crore | Rs 3,450 crore | Up 13% |
| EBITDA | Rs 709 crore | Rs 560 crore | Up 26.6% |
| Operating margin | 18.2% | 16.2% | Up 200 bps |
The net profit of Rs 550 crore was significantly higher than the market estimate of Rs 420 crore. EBITDA also exceeded the Bloomberg-tracked analyst estimate of Rs 702 crore, although the difference was relatively small.
Revenue, on the other hand, came in below the estimated Rs 3,974 crore. This meant that the company delivered stronger-than-expected profitability despite a modest shortfall in revenue against market projections.
The gap between revenue growth and profit growth was one of the notable aspects of the results. While revenue increased by 13%, EBITDA rose by 26.6%, indicating an improvement in operating performance during the quarter.
200-basis-point margin expansion stands out
The expansion in operating margins was among the most important highlights of Marico’s Q2 FY27 results.
The company’s operating margin increased to 18.2% from 16.2% in the corresponding quarter last year, marking an improvement of 200 basis points. A basis point represents one-hundredth of a percentage point, making a 200-basis-point expansion equivalent to a rise of two percentage points.
The improvement in margins was accompanied by a 26.6% increase in EBITDA to Rs 709 crore. The growth in operating earnings was more than twice the 13% increase in consolidated revenue.
This indicates that Marico’s profitability improved at a faster pace than its overall sales during the September quarter. The company also managed to report EBITDA slightly above analyst expectations, despite missing the revenue estimate.
For investors, the margin performance will be an important metric to track in subsequent quarters. Sustaining higher margins alongside revenue growth would be relevant in assessing the consistency of the company’s earnings performance.
However, the quarterly figures alone do not establish whether the margin expansion will continue. Future performance will depend on factors affecting the company’s domestic and international operations, as well as its costs and sales growth.
Marico’s India business records revenue growth
Marico’s domestic business remained its largest revenue contributor in Q2 FY27.
Revenue from the India segment increased to Rs 2,916 crore during the September quarter, compared with Rs 2,655 crore in Q2 FY26. This represented an increase of around 9.8% year-on-year.
The India business also recorded a substantial improvement in segment results. Its segment result increased to Rs 540 crore from Rs 398 crore in the corresponding quarter last year.
The increase in segment results suggests that the domestic business contributed meaningfully to the company’s overall improvement in profitability.
India continues to be Marico’s largest business by revenue among the two reported segments. Its performance is therefore an important component of the company’s consolidated results.
The domestic segment’s revenue growth, together with the rise in segment results, helped support the overall improvement in the September-quarter performance.
International business grows faster
Marico’s international business recorded a faster increase in revenue than its India operations during Q2 FY27.
Revenue from international markets rose to Rs 981 crore from Rs 795 crore in the year-ago quarter. This represents growth of approximately 23.4% year-on-year.
The international business also reported an improvement in segment results, which increased to Rs 217 crore from Rs 195 crore in Q2 FY26.
The stronger revenue growth meant that overseas operations contributed a larger share of Marico’s consolidated revenue during the quarter. International revenue accounted for around one-fourth of the company’s total segment revenue.
The performance reflects continued growth across Marico’s overseas operations, although the figures provided do not specify the contribution of individual countries or product categories.
The faster growth in international revenue also highlights the importance of the overseas business to the company’s overall expansion. Along with the domestic segment, it contributed to the increase in consolidated revenue and segment results.
Segment results rise to Rs 757 crore
Marico’s combined segment revenue stood at Rs 3,897 crore in Q2 FY27, compared with Rs 3,450 crore in the corresponding period last year.
Total segment results increased to Rs 757 crore from Rs 593 crore, reflecting an improvement across both the India and international businesses.
The India segment contributed Rs 540 crore to the total segment results, while the international business contributed Rs 217 crore.
The domestic business remained the larger contributor to segment profitability, accounting for the majority of the reported results. At the same time, the international business recorded faster revenue growth, supporting the company’s overall performance.
The increase in segment results, along with higher EBITDA and wider operating margins, points to an improvement in Marico’s operating performance during the quarter.
What Marico’s Q2 performance means for investors
Marico’s Q2 FY27 results presented a mixed picture on revenue and a stronger performance on profitability. Consolidated revenue increased 13% year-on-year but fell short of the Bloomberg-tracked analyst estimate. Net profit and EBITDA, however, were higher than their respective market estimates.
The 31% rise in net profit to Rs 550 crore was particularly notable, while the 26.6% increase in EBITDA demonstrated stronger growth in operating earnings. The 200-basis-point expansion in operating margin to 18.2% was another key feature of the results.
The domestic business continued to provide the largest share of revenue and segment results. Meanwhile, international operations recorded faster revenue growth, indicating that overseas markets remained an important contributor to the company’s expansion.
Investors will likely monitor whether Marico can sustain its improved margins while maintaining growth across both business segments. Revenue performance will also remain important, given that the September-quarter figure was below analyst expectations.
Overall, Marico delivered a strong improvement in profitability in Q2 FY27, supported by growth in both India and international operations. The margin expansion, combined with higher net profit and EBITDA, was the standout feature of the September-quarter results.