Strong Volume Growth and Improving Profitability
The September quarter brought an interesting development for India's FMCG sector. While many businesses focus on revenue growth, the real story is how companies convert higher sales into stronger operating profits.
**Marico Ltd. (NSE: MARICO)** delivered a strong Q2 FY27 performance, with revenue growing 13% year-on-year and operating profit increasing 27%.
Its Parachute portfolio recorded 13% growth, achieving a market share of 60%. Meanwhile, the foods business expanded 45%, reflecting growing demand for diversified consumer products.
Another important development was the improvement in operating profit margins to 18.2%, alongside a 200-basis-point expansion.
Management also raised its FY27 operating profit growth guidance to the mid-20% range, compared with its earlier high-teens expectation.
**Why does this matter?**
Marico's performance highlights how volume growth, product premiumisation, cost efficiency and business diversification can collectively strengthen earnings visibility.
For investors studying the FMCG sector, this is an example of why analysing profitability and management guidance alongside revenue growth is important.
**Stocks in Focus:**