Strong domestic volumes, value-added hair oils and international markets are expected to support Marico’s Q2 performance, while lower copra costs aid margins
Consumer goods company Marico expects consolidated revenue to grow in double digits in the second quarter of FY27, supported by strong domestic demand for premium products and continued momentum across its core, digital and international portfolios, the company said in its latest quarterly update.
The company expects its India business to record underlying volume growth in the double digits during the quarter. Parachute Coconut Oil is expected to post early-teens volume growth, while the value-added hair oils segment is likely to grow in the twenties for the sixth consecutive quarter.
Marico attributed the performance of Parachute Coconut Oil to the brand’s consumer equity, trust and supply-chain advantages. In value-added hair oils, the company said investments in the mid and premium segments, higher direct reach through Project SETU and growth in the Almond category are expected to support the segment’s momentum.
Saffola Oils is expected to report mid-single-digit, price-led growth, although volumes declined during the quarter as Marico prioritised threshold profitability and rationalised supplies of select variants. Its Foods and Premium Personal Care businesses, including digital-first brands and shampoo, continued to grow broadly in line with expectations.
The company said premiumisation remains an important growth driver as consumers increasingly shift towards higher-priced offerings across food and personal care. Marico expects its newer businesses to contribute more significantly to diversification as they scale alongside its established franchises.
Marico’s international business is expected to register growth in the teens on a constant-currency basis, led by Vietnam, the Middle East and South Africa. Bangladesh recorded a modest sequential improvement, although the business continued to operate against a high base and elevated inflation.
On input costs, Marico said crude-linked derivatives became more expensive during the quarter, while copra prices remained around 35 per cent below their peak levels. The company expects gross margin to improve strongly year-on-year, supported by a favourable portfolio mix and lower copra costs.
Marico has also increased investments in advertising and sales promotions as it continues to support brands and growth initiatives. The company expects operating profit to grow in the mid-twenties during the quarter, supported by revenue momentum and gross-margin expansion.
The company said its performance in the first half of FY27 puts it on track to exceed its near-term guidance across key financial parameters. It expects the momentum to be supported by its core franchises as well as newer growth engines across its portfolio.
