FMCG major posts marginal profit dip despite strong revenue growth and higher domestic sales momentum
FMCG company Marico reported a slight dip in its consolidated net profit for the September quarter, with earnings coming in at Rs 432 crore. The figure is marginally lower than the Rs 433 crore posted in the same quarter last year, according to the firm’s regulatory filing. The decline came as gross margins compressed due to a high base and increased input costs.
Despite the profit moderation, Marico recorded strong topline growth. Consolidated revenue from operations rose 30.7 per cent year-on-year to Rs 3,482 crore for the September quarter of FY26, compared with Rs 2,664 crore a year earlier.
“In Q2FY26, revenue from operations was at Rs 3,482 crore, up 31 per cent year-on-year, with underlying volume growth of 7 per cent in the India business and constant currency growth of 20 per cent in the international business. Consolidated and India revenue growth stood at multi-quarter highs”, the company said in its earnings release.
Operating costs climbed sharply, with total expenses rising 35.87 per cent to Rs 2,981 crore during the quarter.
“Gross margin contracted by 810 bps year-on-year, on a particularly high base, as sharp inflation in key commodities exerted incremental pressure in this quarter. Despite these headwinds, we continued to invest meaningfully to strengthen the long-term equity of our franchises and accelerate portfolio diversification, with A&P spending rising 19 per cent YoY”, Marico stated.
As a result, the company’s operating margin slipped to 16.1 per cent, down 350 basis points.
Domestic revenue grew 34.76 per cent to Rs 2,667 crore, while its international business generated Rs 815 crore, a 19 per cent increase year-on-year. Total income, which includes other income, rose 28.58 per cent to Rs 3,531 crore for the quarter.
For the first half of FY26, Marico’s consolidated income reached Rs 6,846 crore, reflecting a 26.17 per cent rise from the year-ago period.
On the BSE, Marico shares were trading at Rs 723.60 apiece on Friday, up 0.23 per cent from the previous close.
