Marico Ltd Q2 FY27 Results Analysis: EBITDA Jumps 27%, Margin Expands 196 bps

Cofacto Research Published November 02, 2026 4 min read

Marico Ltd reported Q2 FY27 numbers with revenue of Rs. 3,897.00 Cr (+12.96% YoY) and PAT growth of +29.17% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 3,897.00 Cr (+12.96% YoY)
PAT (Q2)	Rs. 558.00 Cr (+29.17% YoY)
EBITDA margin	18.19% (+196 bps YoY)
EPS (Q2)	Rs. 4.24 (+30.86% YoY)

Quarter Snapshot

Marico delivered ahead of its own FY27 framework on revenue (+12.96%), EBITDA (+26.61% vs mid-twenties guidance) and margin (+196 bps vs +140-150 bps guided), with a ~600 bps gross-margin expansion from copra deflation partly reinvested into a deliberate A&P step-up. Watch items are the Rs.95 cr deferred-tax credit flattering the 17.21% ETR, International margin compression of 241 bps, and an inventory-led working-capital build that took CFO/PAT to 0.57x. H1 momentum leaves only ~5% H2 revenue growth needed to cross the Rs.15,000 cr FY27 target.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 revenue double-digit growth, cross Rs.15,000 cr	FY27 framework, Q4 FY26 earnings call; Oct 5, 2026 business update ("likely to surpass near-term guidance across key financial parameters")	Q2 +12.96% YoY (restated base); H1 Rs.7,854 cr, +17.73% YoY	On Track
FY27 EBITDA growth high-teen base, 20% aspiration	FY27 guidance, Q4 FY26 call; Oct 5 update: "operating profit expected to grow mid-twenties"	Q2 +26.61%; H1 +25.76% — ahead of base case	On Track
FY27 EBITDA margin +140–150 bps	FY27 reverse-math guidance, Q4 FY26 call	H1 19.46% vs 18.21% = +125 bps; Q2 +196 bps YoY	On Track
Gross margin "hold the gross margin percentage"	FY27 guidance, Q4 FY26 call	Gross-margin proxy 48.11% vs 42.12% year-ago (+~600 bps)	On Track
India volume growth high single-digit	FY27 guidance, Q4 FY26 call	Not disclosed in the filing; Oct 5, 2026 business update: double-digit volumes — per business update; not in filing	On Track
International CCG mid-teens	FY27 guidance, Q4 FY26 call	Filing has no CCG; segment revenue +23.40% YoY INR; Oct 5 update cites teens CCG — direction	On Track
Consolidated tax rate ~20%	FY27 guidance, Q4 FY26 call	ETR 17.21% (Q2), 17.35% (H1), flattered by Rs.95 cr deferred credit — better than guided	Met
"Operating profit expected to grow mid-twenties" (Oct 5, 2026 business update)	Company business update	EBITDA +26.61% YoY	Confirmed
Consolidated revenue "expected to grow double digits" (Oct 5, 2026 update)	Company business update	+12.96% YoY restated basis (+11.92% on pre-restatement base)	Confirmed
"Likely to surpass near-term guidance across key financial parameters" (Oct 5, 2026 update)	Company business update	Revenue, EBITDA, margin and tax all at or ahead of the FY27 framework trajectory	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q4 FY26	Q1 FY27	Q2 FY27
India volume growth	9%	11%	not in filing (Oct 5 update: double-digit)
International CCG	19%	15%	not in filing (Oct 5 update: teens)

Key Investment Insights

Key Positives

Revenue grew 12.96% YoY to Rs.3,897 cr on a restated base that had grown 31% in the prior-year quarter
EBITDA grew 26.61% YoY to Rs.709 cr with margin up 196 bps to 18.19%, ahead of the mid-twenties operating profit growth signalled in the October 5 business update
Gross-margin proxy expanded ~600 bps YoY to 48.11% on copra deflation, with ~2 pp retained after reinvesting ~3.7 pp into A&P
India segment profit grew 35.68% YoY with margin up 353 bps to 18.52% on 9.83% revenue growth
International revenue grew 23.40% YoY in INR to Rs.981 cr
Effective tax rate of 17.21% came in better than the guided ~20%, though flattered by a Rs.95 cr deferred tax credit
H1 revenue of Rs.7,854 cr (+17.73% YoY) leaves only +4.98% H2 YoY growth needed to cross the Rs.15,000 cr FY27 target

Risk Factors

International segment margin compressed 241 bps YoY to 22.12% with result growth (+11.28%) lagging revenue (+23.40%)
Other expenses rose 25.97% YoY, consistent with crude-linked packaging inflation flagged by management
Finance cost doubled to Rs.24 cr and D&A rose 36.17% YoY on higher borrowings, capex and Skinetiq consolidation
CFO/PAT was 0.57x in H1 with working capital consuming Rs.640 cr, driven by a Rs.663 cr inventory build
Subsidiary contribution was negative Rs.133 cr this quarter (consolidated PAT-to-owners below standalone PAT)
QoQ revenue declined 1.52% and EBITDA margin fell 251 bps sequentially on the A&P step-up