Marico Shares Jump 6% on Strong Q2 Earnings and Positive Guidance Revision

Marico’s Earnings Momentum Lifts Its FY27 Ambitions

Stronger volumes and wider margins have given the consumer-goods maker room to raise its growth outlook.

Volume growth powered a stronger quarter

Marico’s consolidated net profit rose to ₹558 crore in Q2FY27 from ₹432 crore in the year-earlier quarter. Revenue from operations increased 12.95% to ₹3,897 crore, while EBITDA climbed 27% to ₹710 crore. The faster growth in operating profit, alongside revenue growth, points to improved operating leverage during the quarter.

The company attributed the performance to domestic volume growth. Its India business recorded 10% underlying volume growth and revenue rose 9.83% to ₹2,916 crore. India business net profit increased 31%, which Marico described as its strongest growth in 51 quarters. International business delivered 13% constant-currency growth.

EBITDA margin expanded by 200 basis points year on year to 18.2%. For investors, the combination of volume expansion and better margins is more informative than sales growth alone: it suggests the quarter’s profit improvement was supported by both demand and operating performance.

A higher FY27 outlook raises the execution bar

Management lifted its FY27 EBITDA growth guidance to the mid-20s from the high teens. It cited a favourable product mix, stronger Parachute volumes and improving profitability in Foods and digital-first businesses. The revision signals greater confidence in sustaining earnings momentum beyond the reported quarter, but it also gives investors a higher benchmark against which to judge subsequent performance.

Marico also expects to achieve its ₹20,000 crore revenue target, originally set for FY30, a year earlier. Motilal Oswal Financial Services said the target could be reached by FY29 if current momentum holds. That remains an outlook, not a guaranteed outcome: delivery will depend on continued growth in the core portfolio as well as newer businesses becoming profitable at scale.

Newer categories add opportunity—and a test of scale

The growth plan extends beyond established brands such as Saffola and Parachute. Jefferies noted a favourable response to shampoo and almond-oil initiatives, with management expecting Parachute shampoo to cross ₹100 crore in revenue in FY27. Shampoo and almond oils together are targeted to reach ₹400 crore–₹500 crore over the medium term.

In protein, Marico is participating across categories and price points through Saffola, Cosmix, Plix and True Elements. These businesses could broaden the company’s growth drivers, but their contribution will matter most if expansion translates into sustainable profitability. Jefferies raised its FY27–29 earnings-per-share estimates by 2%–3% after the quarter and increased its target price to ₹1,035 from ₹1,000. Motilal Oswal reiterated a Buy rating with a ₹975 target price, forecasting 12% revenue and 18% EBITDA CAGR over FY26–29.

The rally reflects stronger expectations, not certainty

Marico shares rose about 6% in morning trade after the results. The stock opened at ₹832.55 on the NSE and reached ₹847.55; at 9:22 a.m., it was trading at ₹845.65, with about 2.7 million shares changing hands. The sharp response reflected investors’ assessment of the earnings beat and raised guidance, though a single session does not establish how the stock will perform from here.

Jefferies characterised Marico as standing out against peers and highlighted its premium valuation relative to them. That makes delivery important: stronger growth expectations may support sentiment, while any slowdown in volumes, margin expansion or the scaling of newer categories could test the assumptions reflected in analyst targets. Those targets are brokerage estimates, not assured share prices.

Key Highlights

• Consolidated net profit rose 29.16% to ₹558 crore in Q2FY27.
• Revenue increased 12.95% to ₹3,897 crore; EBITDA grew 27% to ₹710 crore.
• EBITDA margin expanded 200 basis points to 18.2%.
• FY27 EBITDA growth guidance was raised to the mid-20s from the high teens.
• Management expects to reach its ₹20,000 crore FY30 revenue target a year early.

Investor Note: The quarter and guidance revision strengthen Marico’s growth case, but investors should weigh the improved outlook against execution in newer categories and the company’s premium valuation, rather than treating brokerage targets or one-day share gains as a certainty.