Marico Q2 profit up 31% to Rs 550 crore; EBITDA clears gate

MARICO Marico Limited reported Q2 FY27 consolidated net profit of Rs 550 crore, up 31 percent, and the shares rose 6.5 percent on 3 November. Q2 FY27 numbers (consolidated): Revenue from operations: Rs 3,897 crore, up 13% from Rs 3,450 crore EBITDA: Rs 709 crore, up 27% from Rs 560 crore; margin 18.2%, against 16.2% Net profit: Rs 550 crore, up 31% from Rs 420 crore India volume growth: 10%, underlying My 6 October gate was operating profit near Rs 700 crore. This quarter printed Rs 709 crore, so that part passes. My 18 October post kept me out until that number and a Q3 view on crude-linked costs were in. I have not found the Q3 cost view. Management’s FY27 guide is mid-twenties EBITDA growth. Marico [MARICO][***** closed at Rs 881.55 on 6 November on StockGro (previous close Rs 875.07), up 13.5 percent in a month and 0.4 percent below its 52-week high of Rs 885.33. P/E 56.8; sector P/E near 31. My view: hold, not a fresh entry. The operating-profit gate passes, so my stay-out stance no longer fits the facts. At Rs 881 the stock sits at its 52-week high after a 13 percent monthly gain, and the Q3 cost view is still missing, so I do not chase. Holders who kept their shares stay; exit on a close below Rs 780, the October level. Fresh money waits for a close back at or below Rs 850.70, the 3 November NSE print, with the Q3 crude-cost view on record. What would change my mind: a Q3 EBITDA growth rate below the mid-twenties guide, or a crude-cost warning from management. Next trigger: Q3 FY27 results, date not yet sourced. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.