Healthy Demand, Slippery Margins:

MARICO

Navigates Q2 Challenges

posted strong revenue growth in Q2FY26, driven by robust domestic demand and expanding premium portfolios. However, elevated copra and oil prices dragged EBITDA margins to a multi-quarter low, tempering near-term profitability. The company remains optimistic about margin recovery and earnings growth in H2FY26 and beyond. Consolidated revenue rose 31% YoY to ₹3,482 crore, with domestic revenue up 35%. Volume growth stood at 7%, supported by traction in food and premium personal care segments. Despite sector-wide demand softness, Marico’s diversified portfolio and new franchises helped sustain topline momentum. Operating margin declined to 16.1% in Q2FY26, hurt by higher copra and edible oil prices. This marks the lowest margin in several quarters, reflecting cost inflation and increased spending on festive go-to-market initiatives. The company expects margin recovery in H2FY26 and a 200 bps expansion by FY27. Marico continues to strengthen its premium offerings, which contributed meaningfully to volume and value growth. Market share gains in core categories and new launches in food and personal care segments indicate successful execution of its premiumization strategy. To offset input cost pressures, Marico has implemented selective price hikes. The company is also optimizing promotional spends and improving supply chain efficiencies to protect margins. These efforts are expected to support double-digit EBITDA growth in the second half of FY26. The stock hit a 52-week high of ₹764.65 and is up 29% over the past year. Analysts forecast 45% earnings growth by FY27, driven by margin recovery, premium mix expansion, and steady demand. Execution on cost control and portfolio strategy will be key to sustaining investor confidence.