Marico hikes ad spends 25% as Q1 revenue climbs 23% to Rs 3,957 crore

Marico stepped up its advertising and sales promotion (A&SP) spending by 25% year-on-year in the quarter ended June 2026, reinforcing its focus on brand building as it delivered its strongest quarterly profit growth in the last seven years.

Advertising and sales promotion expenditure stood at Rs 327 crore in Q1 FY27, compared with the restated Rs 261 crore in the corresponding quarter last year. A&SP accounted for 8.3% of revenue, up slightly from 8.1% a year ago. The company said the higher investment reflects its continued focus on strengthening the long-term equity of its brands.

The FMCG company reported consolidated revenue from operations of Rs 3,957 crore for the quarter, up 23% from the restated Rs 3,221 crore in Q1 FY26. EBITDA rose 25% to Rs 819 crore from Rs 655 crore, while the EBITDA margin improved by 40 basis points to 20.7%. Profit after tax (PAT) also increased 25% year-on-year to Rs 630 crore, marking Marico's highest quarterly profit growth in the last 28 quarters.

The company said the performance was driven by 11% underlying volume growth in its India business, the strongest in 20 quarters, along with 15% constant currency growth in its international operations. Over a two-year CAGR basis, volume growth stood at 10%, while revenue and PAT grew 23% and 17%, respectively.

In India, revenue grew 21% year-on-year to Rs 3,003 crore, aided by broad-based demand across channels. Traditional trade and organised retail registered double-digit growth, while e-commerce continued to gain momentum, led by more than 50% growth in quick commerce. Marico said over 96% of its portfolio either gained or retained market share, while more than 99% maintained or expanded household penetration during the quarter.

Across categories, Parachute Rigids delivered 10% volume growth, with revenue rising 23%. Value-Added Hair Oils recorded 22% value growth and gained 80 basis points in market share. Saffola edible oils posted 7% revenue growth, although volumes declined in the high single digits due to supply rationalisation of select variants. The Foods portfolio expanded 43%, crossing an annualised revenue run rate of Rs 1,300 crore, led by Saffola Soya Chunks, oats and muesli. Meanwhile, the Premium Personal Care portfolio reached an annualised revenue run rate of around Rs 450 crore, supported by growth in premium hair nourishment, male grooming and skincare.

Marico's international business maintained its growth trajectory with 15% constant currency growth during the quarter. Vietnam grew 27%, while the Middle East and North Africa (MENA) region reported 24% growth. South Africa recorded 8% growth, and Bangladesh expanded 4% despite inflation-led softness in consumer demand and a high base. The company's exports and NCD businesses also registered 16% growth.

Looking ahead, Marico said it remains on track to deliver double-digit revenue growth in FY27 and expects revenue to cross Rs 15,000 crore. It has guided for high single-digit volume growth in India, mid-teens constant currency growth in its international business and high-teen EBITDA growth during the year.

The company added that it will continue investing in its core brands while accelerating growth in Foods, Premium Personal Care and its digital-first portfolio. It aims to increase the contribution of Foods and Premium Personal Care to India revenue to around 27% by FY27 and 33% by FY30. Internationally, Marico plans to deepen its premium portfolio while reducing its dependence on Bangladesh by expanding in markets such as Vietnam, MENA and South Africa.

Saugata Gupta, Managing Director and CEO of Marico, said the quarter reflected the company's focus on strengthening core brands while scaling premium and digital businesses alongside its international portfolio. "Our Q1 performance is a reaffirmation of our strategic clarity, execution quality and growth model. With 23% revenue growth driven by double digit volume growth in India and 25% profit growth, our highest in the last 28 quarters, we have a great start to the year."