Marico posts 31% YoY growth in Q2 revenue

Marico has posted ₹3,482 crore as Revenue from Operations in Q2FY26, up 31% YoY, with underlying volume growth of 7% in the India business and constant currency growth of 20% in the international business.

The India business revenues stood at ₹2,667 crore, up 35% YoY.

“We witnessed steady demand trends in India during the quarter, except for the transitionary disruption in trade channels ahead of the implementation of new GST rates in the month of September. The India business revenues stood at ₹2,667 crore, up 35% YoY, aided by price hikes in core portfolios in response to sharp inflation in key input costs. Offtake growth also remained strong, with more than 95% of the business gaining or sustaining market share and more than 75% of the business gaining or sustaining penetration, both on MAT basis.”

The international business maintained its robust growth trajectory with 20% constant currency growth, demonstrating its strong fundamentals and sustained growth potential.

Gross margin contracted by 810 bps YoY, on a particularly high base, as sharp inflation in key commodities exerted incremental pressure in this quarter. Despite these headwinds, we continued to invest meaningfully to strengthen the long-term equity of our franchises and accelerate portfolio diversification, with A&P spends rising 19% YoY. Consequently, EBITDA was up 7%. EBITDA margin stood at 16.1%, down ~350 bps. PAT stood at ₹420 crore, up 8% YoY on a like-for-like basis, i.e. after adjusting for one-offs in the base quarter. Reported PAT was marginally lower on a YoY basis.

As part of it’s FY outlook, Marico’s statement said: The sector has witnessed stable demand trends during the quarter. We also expect consumer sentiment to gradually improve on the back of easing inflation, healthy crop outlook and policy stimulus. The recent GST rate rationalization announced by the Government is a welcome step towards stimulating demand and long-term growth in the FMCG sector. 30% of our India business has benefited from the GST rate rationalization. We have passed on the benefits of revised GST rates to consumers across relevant product categories, reinforcing affordability and accessibility. We expect a steady growth trajectory in our core categories, despite input cost headwinds in the near term. This will be further aided by ongoing initiatives to support select General Trade (GT) channel partners and
transformative expansion in our direct reach footprint under Project SETU. We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organized retail and ECommerce channels.”

Saugata Gupta, MD & CEO commented, “Our performance in the first half of the year reflects the institutionalized resilience of our operating model amidst tough inflationary conditions. We have sustained healthy volume-led growth in the India business, coupled with market share and penetration gains across key portfolios. The core franchises have been stable despite steep input cost headwinds, while the new businesses continue to advance towards strategic aspirations. The International business has delivered stellar growth, reinforcing the breadth and balance of our portfolio. We expect to maintain healthy volume and revenue growth momentum in the quarters ahead, with profit growth gaining traction as margin pressures gradually abate.”