Marico’s core franchises expected to power a strong Q2 as FMCG demand holds firm

Marico expects consolidated revenue to grow at a double-digit rate in the second quarter of FY27, with resilient domestic demand, strong volume growth across its core franchises and momentum in premium and digital-first businesses supporting performance at the FMCG major.

The update comes as the broader consumer goods market navigates a volatile operating environment, with companies balancing resilient consumption against evolving inflationary conditions and uneven input costs. Marico’s performance points to continued strength in premiumisation and branded consumption, while favourable copra prices are expected to provide a further boost to margins. Copra refers to the dried kernel of coconut used to extract oil.

Also Read: Marico to prioritise margins over volumes in certain segments


Marico offers a range of coconut oils under its flagship Parachute and Coco Soul brands, spanning pure edible and hair oils to enriched variants and virgin culinary oils.

The company also said its strong first-half performance puts it on track to surpass its near-term guidance across key financial parameters. Marico added its India business maintained strong momentum during the quarter, with underlying volume growth touching double digits.

Parachute Coconut Oil accelerated further, posting early-teens volume growth, which the company attributed to the brand’s strong equity, consumer trust and its supply-chain advantage. Value Added Hair Oils delivered its sixth consecutive quarter of stellar growth, with value growth again touching the twenties.

Growth in Value Added Hair Oils reflected the strength of the franchise and a structural shift in its growth trajectory, helped by investments in the mid and premium segments, wider direct reach through Project SETU and aggressive expansion in the Almond category.

Saffola Oils, meanwhile, delivered mid-single-digit price-led growth. Volumes declined as Marico focused on maintaining threshold profitability and rationalised supplies of select variants. Foods and Premium Personal Care, including digital-first brands and shampoo, also maintained their growth momentum, supporting the company’s broader diversification strategy.

Marico’s international business posted constant-currency growth in the teens, led by strong performances in Vietnam, the Middle East and South Africa. Bangladesh saw a marginal sequential improvement, although the business continued to face a high base and persistently elevated inflation.

The company expects consolidated revenue to grow in double digits, supported by its core, digital and international portfolios.

Also Read: Marico targets Rs 15,000 crore revenue in FY27, eyes Rs 20,000 crore by FY30 on premiumisation push

On the cost side, crude-linked derivatives became more expensive during the quarter, while copra prices remained rangebound at about 35% below their peak levels. Marico expects gross margin to accelerate strongly year-on-year, helped by a favourable portfolio mix and the benefit of lower copra prices.

At the same time, the company said investments in advertising and sales promotion increased significantly as it continued to spend behind brand building and growth initiatives.

Overall, Marico expects operating profit to grow in the mid-twenties.

“With a strong performance through the first half of the year, we are likely to surpass our near-term guidance across key financial parameters, anchored in the sustained strength of our core franchises and the scale-up of new growth engines,” the company said.

Marico said it remained optimistic about consumption trends going ahead while continuing to monitor evolving inflationary conditions. It reiterated its aspiration of delivering sustainable and profitable volume-led growth over the medium term.