Marico, one of India’s leading consumer products companies in the global beauty and wellness categories, expects resilient domestic demand and strong performance across its core franchises to drive another robust quarter in the second quarter of FY27.
In its quarterly business update, the company said underlying volume growth in its India business touched double digits, while consolidated revenue is expected to grow in double digits.
Marico said it remains optimistic about consumption trends, while continuing to monitor evolving inflationary conditions.
Parachute Coconut Oil accelerates
Parachute Coconut Oil sustained its strong performance and accelerated further, recording early-teens volume growth during the quarter.
Marico attributed the performance to the brand’s strong equity and consumer trust, along with its supply chain-led competitive advantage.
Saffola Oils, meanwhile, delivered mid-single-digit price-led growth, while volumes declined as the company focused on maintaining threshold profitability and rationalised supplies of select variants.
Value Added Hair Oils maintain momentum
Marico’s Value Added Hair Oils segment delivered its sixth consecutive quarter of stellar growth, with growth touching the twenties once again.
The company said the performance reflects the strength of the franchise and a structural shift in its growth trajectory, supported by investments in the mid and premium segments, enhanced direct reach through Project SETU and aggressive growth in the Almond category.
Foods and Premium Personal Care expand
Foods and Premium Personal Care, including digital-first brands and shampoo, sustained their growth momentum in line with Marico’s aspirations.
The company said these businesses are further accelerating its diversification journey and strengthening its portfolio beyond its core franchises.
International business grows in teens
Marico’s international business delivered constant-currency growth in the teens, led by strong performances in Vietnam, the Middle East and South Africa.
Bangladesh recorded 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.
Copra prices support margins
Among key inputs, the cost of crude-linked derivatives increased further, while copra prices remained range-bound at around 35% below peak levels.
Marico expects a strong year-on-year acceleration in gross margin, supported by a favourable portfolio mix and the benefit of lower copra prices.
At the same time, A&P investments increased significantly as the company continued to invest behind brand building and growth initiatives.
Operating profit seen rising in mid-twenties
Marico expects operating profit to grow in the mid-twenties during the quarter.
The company said strong performance through the first half of FY27 puts it on track to surpass its near-term guidance across key financial parameters.
The outlook is anchored by the continued strength of its core franchises and the scale-up of newer growth engines.
Marico said it remains focused on delivering sustainable and profitable volume-led growth over the medium term.