Marico ramps up brand spending in Q2 FY27

Marico stepped up its advertising and sales promotion (ASP) investments in Q2 FY27, with the company saying spending “increased significantly” during the quarter as it continued to back brand building and growth initiatives.

The company has not yet disclosed the absolute ASP spend for the quarter.

The higher investment comes after a 25% increase in ASP spending in Q1 FY27. Marico had spent Rs 327 crore on advertising and sales promotion in the June quarter, compared with restated ASP expenditure of Rs 261 crore in Q1 FY26. ASP accounted for about 8.3% of consolidated revenue in Q1 FY27.

At the time, Marico said the increased spending was intended to strengthen the long-term equity of its brands.

The increased brand-building investment comes against another strong quarter for Marico’s India business, where underlying volume growth moved into double digits.

Parachute Coconut Oil recorded early-teens volume growth in Q2 FY27, with Marico attributing the performance to the brand’s equity, consumer trust and supply-chain advantage.

Value Added Hair Oils continued its strong momentum, posting growth in the twenties for the sixth consecutive quarter. Marico said investments in the mid and premium segments, expanded direct reach through Project SETU and growth in the almond category supported the business.

Saffola Oils recorded mid-single-digit price-led growth. Volumes, however, declined as the company prioritised threshold profitability and rationalised supply of select variants.

Marico’s Foods and Premium Personal Care businesses, which include its digital-first brands and shampoo portfolio, also maintained their growth momentum as the company continued to expand beyond its traditional core franchises.

The increased marketing focus comes alongside Marico’s efforts to build a broader portfolio across premium personal care, foods and digital-first businesses. The portfolio includes Beardo, Plix, True Elements, Just Herbs and Cosmix, alongside established franchises such as Parachute and Saffola.

Its international business registered constant-currency growth in the teens, led by Vietnam, the Middle East and South Africa. Bangladesh saw a marginal sequential improvement, although the market continued to face elevated inflation and a high base.

On the input-cost front, crude-linked derivatives became more expensive, while copra prices remained around 35% below their peak levels.

Marico expects gross margins to see strong year-on-year improvement, supported by portfolio mix and lower copra prices. Despite the stepped-up brand investments, the company expects operating profit to grow in the mid-twenties during the quarter.

Marico said its first-half performance keeps it on track to exceed its near-term guidance across key financial parameters.