Marico’s investors have reason to change their mind after the September quarter (Q2FY27) earnings announced post-market hours on Monday. The stock gained about 8% on Tuesday. Recall that the stock had slumped 9% after its Q1 results.
The turnaround in sentiment has come on the back of market-share gains and a sharp recovery in profitability, with consolidated Ebitda growing 27% year-on-year, the fastest growth in 50 quarters, as per Marico. The Ebitda margin expanded 200 basis points (bps) to 18.2%, benefiting from softening of copra prices year-on-year.
But with revenue missing estimates and commodity prices remaining a wild card, the question is whether this optimism can last. Consolidated revenue grew 13% year-on-year in Q2, while net profit rose faster at 31% to ₹550 crore. India underlying volume growth stood at 10% and revenue growth was 9%, reflecting healthy demand and improving distribution.
More than 95% of the portfolio gained or sustained market share and penetration on a moving annual total basis. Traditional and organized trade grew in double-digits, while quick commerce gained momentum, making up for the uneven growth reported in mainstay Parachute coconut oil and Saffola edible oil products.
Parachute delivered 13% volume growth—the strongest in 22 quarters—taking its volume market share beyond 60%. However, value growth was barely 1%, as price cuts to pass on lower copra costs supported volumes but constrained realizations.