Profit jumps 31%, EBITDA margin expands 200 basis points

Marico Limited (

) reported a strong Q2 FY27 performance, with double-digit revenue growth and a notable improvement in operating margins. Key Q2 FY27 numbers Consolidated revenue from operations: ₹3,897 crore, up approximately 13% year-on-year. Net profit attributable to owners: ₹550 crore, up approximately 31%. EBITDA: ₹709 crore, up 26.6%. EBITDA margin: 18.2%, compared with 16.2% a year earlier. Profit before tax: ₹674 crore, compared with ₹550 crore in Q2 FY26. Why this matters Profit growth outpaced revenue growth, supported by a 200-basis-point expansion in EBITDA margin. This suggests better operating performance, although the company also disclosed that its results include the impact of its Skinetiq acquisition. What to monitor next Volume growth across key FMCG categories. EBITDA margin sustainability. Input costs, especially copra and edible oils. Performance of international businesses. Contribution from acquired brands and businesses. My analytical view This is a positive operating quarter. Stronger margins alongside revenue growth are encouraging. However, investors should assess whether the margin improvement is sustainable and consider the sequential decline in revenue and net profit compared with Q1 FY27. Risk: Commodity inflation, changing consumer demand and competition could put pressure on margins. Disclosure: State your actual holding or interest, if any, before publishing. SEBI RA Disclaimer: Umang Rajesh Bhutada is a SEBI-registered Research Analyst (INH000023001). This content is for educational and informational purposes only and is not investment advice. Securities investments are subject to market risks. Please consult a qualified financial professional before making investment decisions.