Marico Shares Surge Over 8% as Q2 Profit Jumps 31% on Strong Margins and Volume Growth
Shares of Marico jumped as much as 8.4% to hit an intraday high of ₹865 during Tuesday trading on Dalal Street, trading within 3% of its 52-week peak of ₹889.95. The sharp rally followed the fast-moving consumer goods (FMCG) major's strong September-quarter financial report, marked by robust operating margins, double-digit domestic volume gains, and an upgraded full-year earnings forecast.
The maker of Parachute and Saffola reported a consolidated net profit of ₹550 crore for the quarter ended September 30, up 31% year-on-year from the corresponding quarter of the previous financial year. Revenue from operations climbed 12% to ₹3,897 crore, compared to ₹3,450 crore reported a year earlier.
Key Financial Highlights:
- Consolidated revenue from operations stood at ₹3,897 crore, representing a 12% year-on-year growth.
- Consolidated net profit rose 31% year-on-year to ₹550 crore.
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) advanced 27% to ₹709 crore.
- EBITDA margin expanded 200 basis points to 18.2% from 16.2% in the year-ago period.
- Gross margin widened by approximately 600 basis points year-on-year, supported by lower copra input costs and a favourable product sales mix.
- Advertising and sales promotion spending rose 44% year-on-year to ₹451 crore, representing 11.6% of revenue.
Broad-Based Volume Expansion Across Categories
The company's domestic business reported a 10% underlying volume growth, outpacing broader consumer sector trends. Over 95% of the domestic portfolio maintained or expanded its market share and penetration levels on a moving annual total basis.
Internationally, Marico generated a 13% constant-currency growth rate despite headwinds in certain overseas markets. Among its newer growth drivers, the company's packaged foods business surged 45% during the quarter, crossing an annualised revenue run-rate (ARR) of ₹1,500 crore. The premium personal care category crossed an ARR of ₹500 crore, while the digital-first brand portfolio reached an annualised run-rate of approximately ₹1,150 crore.
Addressing investors during the post-earnings commentary, Managing Director and Chief Executive Officer Saugata Gupta attributed the performance to "favorable product portfolio mix, improving profitability across our new growth engines and the benefit of softer copra prices".
Upgraded Guidance and Brokerage Targets
On the back of the first-half operating momentum, Marico raised its performance expectations for the full financial year. The management now targets revenue growth in the teens and expects consolidated turnover to comfortably surpass the ₹15,000 crore mark. Furthermore, EBITDA growth guidance was raised to the mid-twenties, backed by double-digit domestic volumes and an acceleration across international markets.
The upbeat performance and guidance triggered positive coverage from Dalal Street analysts:
- Jefferies: Maintained a 'Buy' recommendation and raised its share price target to ₹1,035 from ₹1,000, pointing to strong multi-year compounding and accelerating volume metrics.
- Systematix and Dolat Capital: Maintained constructive ratings, citing resilient market share defense and margin tailwinds from softer agricultural raw material baskets.
The stock has appreciated roughly 19% over the past 12 months, recovering strongly from its 52-week low of ₹706.35 recorded in November 2025.
