Marico Limited announced a 7% volume growth in India for Q2 FY26, despite disruptions in September. Key highlights include revenue growth hitting multi-quarter highs, benefits from GST rate rationalization, and strong performance in premium personal care. International business maintains robust performance. The company targets around 25% consolidated revenue growth this year and aims for double-digit EBITDA growth in the second half.
India Business Performance
Despite facing disruptions in September due to GST rate revisions, Marico Limited delivered a 7% volume growth in its India business. More than 95% of the business gained or sustained market share, with over 75% gaining or sustaining penetration. Revenue growth in India hit multi-quarter highs, supplemented by prior pricing actions.
Category Highlights
Parachute: Volume was muted due to unprecedented hyperinflation in Copra prices and 60% pricing growth year-on-year. The brand consolidated its market share and is expected to revert to growth as pricing and input cost headwinds recede.
Saffola: Oils were flattish in volume terms, but growth is anticipated to pick up. Value-added hair oils accelerated growth, gaining 150 bps in value market share.
Foods: The portfolio crossed Rs. 1,100 crore ARR. Saffola Oats continues to gain market share, with Honey and Soya Chunks scaling up well. True Elements and Plix maintain strong growth momentum.
Digital-First Portfolio
The digital-first portfolio exited the quarter with an ARR of over Rs. 1,000 crores and is on track to reach 2.5x of FY24 ARR by FY27. Focus remains on profitability, with aspirations to achieve double-digit EBITDA margins by FY27.
International Business
The international business maintained robust performance, with Bangladesh showcasing foundational strength and Vietnam showing signs of recovery. MENA remained on an accelerated growth path.
Future Outlook
Marico aims to improve India volume growth and maintain double-digit constant currency momentum in its overseas business. Supported by pricing growth, the company targets around 25% consolidated revenue growth this year and aims to deliver double-digit EBITDA growth in the second half. The company expects to make meaningful progress towards reaching Rs. 20,000 crores in revenue by 2030.
Source: BSE
