Marico's ad spends jump 44% to ₹451 crore as profit growth hits a 51-quarter high
The Parachute and Saffola maker raised A&SP spends to ₹451 crore in Q2 FY27, while PAT rose 31% to ₹550 crore on 13% revenue growth
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Published: Nov 2, 2026 4:42 PM | 2 min read
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- Marico increased its advertising and sales promotion (A&SP) expenditure by 44% year-on-year to ₹451 crore in Q2 FY27, following a 25% rise to ₹327 crore in Q1 FY27, bringing total first-half spending to ₹778 crore.
- The company reported a 13% rise in consolidated revenue from operations to ₹3,897 crore, though this fell short of market expectations of ₹4,000 crore; net profit increased by 31% to ₹550 crore.
- Marico's EBITDA grew 27% to ₹709 crore, with operating margins expanding by 200 basis points to 18.2%, supported by a significant increase in gross margin due to lower input costs and a favorable product mix.
- The India business saw a 10% volume growth, while international operations grew by 13% in constant currency, with Parachute Coconut Oil achieving early-teens volume growth attributed to strong brand equity and supply-chain advantages.
Marico has raised its advertising and sales promotion (A&SP) spend by 44% year-on-year to ₹451 crore in the second quarter of FY27, up from ₹313 crore a year ago. The increase came in a quarter in which the company also reported its highest PAT growth in 51 quarters.
The Q2 outlay builds on an already heavy first quarter. Marico spent ₹327 crore on A&SP in Q1 FY27, a 25% rise, which took the line to 8.3% of revenue. Together, the two quarters take first-half spends to ₹778 crore. At ₹451 crore, the September quarter figure works out to roughly 11.6% of revenue. Ahead of the results, the company had said only that A&SP investments had "increased significantly", without putting a number on it.
On the financials, consolidated revenue from operations rose 13% to ₹3,897 crore, below the Street estimate of ₹4,000 crore. Profitability more than made up for it. EBITDA grew 27% to ₹709 crore, with margin expanding 200 basis points to 18.2%, while profit attributable to owners climbed 31% to ₹550 crore from ₹420 crore. Total net profit stood at ₹558 crore for the quarter and ₹1,210 crore for the first half.
The margin story rested on input costs. Gross margin expanded by around 600 basis points year-on-year, supported by moderation in copra prices and a favourable portfolio mix. That is a sharp turnaround from Q2 FY26, when gross margin contracted by 810 basis points as commodity inflation bit. The cushion allowed Marico to step up brand spends while still widening operating margin.
The India business delivered 10% underlying volume growth, while the international business grew 13% in constant currency. Parachute Coconut Oil recorded early-teens volume growth, which Marico attributed to brand equity, consumer trust and its supply-chain advantage.
A note on comparisons: from Q1 FY27, certain customer-related promotional expenses are netted off against revenue instead of being reported under A&SP, with past periods restated. The year-ago base of ₹313 crore is therefore a restated figure. Marico had originally reported ₹345 crore for Q2 FY26.
Marico is not alone in leaning in. Nestlé India raised its ad spends by 46% in Q2, and Marico's own A&SP stood at ₹1,300 crore in FY26, or 9.6% of sales.
The Q2 outlay builds on an already heavy first quarter. Marico spent ₹327 crore on A&SP in Q1 FY27, a 25% rise, which took the line to 8.3% of revenue. Together, the two quarters take first-half spends to ₹778 crore. At ₹451 crore, the September quarter figure works out to roughly 11.6% of revenue. Ahead of the results, the company had said only that A&SP investments had "increased significantly", without putting a number on it.
On the financials, consolidated revenue from operations rose 13% to ₹3,897 crore, below the Street estimate of ₹4,000 crore. Profitability more than made up for it. EBITDA grew 27% to ₹709 crore, with margin expanding 200 basis points to 18.2%, while profit attributable to owners climbed 31% to ₹550 crore from ₹420 crore. Total net profit stood at ₹558 crore for the quarter and ₹1,210 crore for the first half.
The margin story rested on input costs. Gross margin expanded by around 600 basis points year-on-year, supported by moderation in copra prices and a favourable portfolio mix. That is a sharp turnaround from Q2 FY26, when gross margin contracted by 810 basis points as commodity inflation bit. The cushion allowed Marico to step up brand spends while still widening operating margin.
The India business delivered 10% underlying volume growth, while the international business grew 13% in constant currency. Parachute Coconut Oil recorded early-teens volume growth, which Marico attributed to brand equity, consumer trust and its supply-chain advantage.
A note on comparisons: from Q1 FY27, certain customer-related promotional expenses are netted off against revenue instead of being reported under A&SP, with past periods restated. The year-ago base of ₹313 crore is therefore a restated figure. Marico had originally reported ₹345 crore for Q2 FY26.
Marico is not alone in leaning in. Nestlé India raised its ad spends by 46% in Q2, and Marico's own A&SP stood at ₹1,300 crore in FY26, or 9.6% of sales.
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