Consumer goods major Marico reported a better-than-expected performance for the June quarter (Q1FY27) on Tuesday, with net profit rising 25% on-year to Rs 630 crore, driven by healthy volume growth and improved operating margins.
The FMCG major’s consolidated revenue rose 22.9% year-on-year to Rs 3,957 crore during the quarter, nearing the Rs 4,000-crore mark, while earnings before interest tax depreciation and amortisation (Ebitda) increased 25% on-year to Rs 819 crore. Ebitda margin expanded to 20.7% from 20.3% a year earlier, up 40 basis points. One basis point is one-hundredth of a percentage point.
The company outperformed Bloomberg consensus estimates across key parameters. Analysts had expected net profit of Rs 581 crore, revenue of Rs 3,925 crore, Ebitda of Rs 763 crore and an Ebitda margin of 19.4% during the quarter under review. Shares of Marico closed trade up 0.41% on the BSE at Rs 879.05 apiece. Results were disclosed during market hours by the Mumbai-based firm on Tuesday.
Marico said advertisement and promotional spending increased 25% during the quarter as it continued investing behind its brands.
The India business grew 21% year-on-year, while the international business expanded 29%. Domestic volumes grew 11%, the highest in the last 20 quarters, while the international business delivered 15% constant-currency growth.
Within its portfolio, Parachute recorded 10% volume growth, its strongest performance in 20 quarters. Value Added Hair Oils (VAHO) posted 23% value growth and 10% volume growth, while contributing 18% to India’s revenue. Saffola Foods registered 43% value growth, though the broader Saffola franchise reported high single-digit volume decline with 7% value growth.
On the outlook, the company said it aims to deliver double-digit revenue growth in FY27 to cross the Rs 15,000-crore revenue mark, along with high-teen Ebitda growth during the year.
“We expect to deliver high single-digit volume growth in the India business and mid-teens constant currency growth in the International business,” the company said.
Commenting on the operating environment, Marico said domestic economic activity remains resilient, supported by private consumption. However, it cautioned that global supply chain disruptions have led to an uptick in inflation, while the progression of the monsoon remains a key monitorable amid the evolving El Nino forecast. The company also noted that softer copra prices are helping offset crude-linked inflationary pressures.
“We continue to drive a structural shift in our portfolio towards premium and more profitable categories. Through focused investments to accelerate profitable scale up of our foods and premium personal care portfolios (including digital-first businesses), we aim to increase their share of India revenue to around 27% by end of FY27 and 33% by FY30,” the company said.