Marico expects Q2 revenue growth in thirties, bets on festive demand and GST boost to sustain momentum

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FMCG major Marico Ltd has projected a robust consolidated revenue growth in the “thirties” for the second quarter of FY26, driven by resilient international performance, pricing interventions, and benefits from GST rate rationalisation across key domestic segments. The company, which owns marquee brands like Parachute, Saffola, and Livon, said demand trends remained stable through most of the quarter and consumer sentiment is expected to improve further during the festive season.

In its Q2 business update released on October 3, Marico highlighted that around 30% of its India business benefited from the recent GST rate cuts, particularly in categories like premium personal care and foods. The company also absorbed transitional trade disruptions ahead of the GST 2.0 rollout in September, offering extended discounts to channel partners to clear pipeline inventory.

Marico Q2FY26 Business Highlights

SegmentPerformance Commentary
Consolidated Revenue GrowthExpected in “thirties” YoY
Operating ProfitModest growth projected
India Business Volume GrowthHigh single-digit growth despite disruptions
International BusinessConstant currency growth in “twenties”
GST Impact30% of India business benefited
Festive OutlookPositive sentiment expected to lift demand

The company’s international business maintained strong momentum, with Bangladesh and MENA (Middle East and North Africa) markets outperforming. Other geographies remained steady, contributing to constant currency growth in the twenties. Marico’s foods and premium personal care segments, including digital-first brands, continued to scale up rapidly, supporting diversification and margin resilience.

Segment-Wise Performance – Q2FY26 Outlook

CategoryVolume TrendRevenue Growth Commentary
Parachute Hair OilLow single-digit declinePrice hikes over 60% YoY to offset input costs
Saffola OilsFlattish volumesRevenue growth in high teens
Value Added Hair OilsHigh teens growthSustained recovery path
Foods & Personal CareAccelerated scale-upDigital-first brands driving growth

Marico noted that copra prices, a key raw material for hair oils, remained rangebound after correcting 10–12% from previous highs. Vegetable oil prices stayed elevated, while crude oil derivatives were benign. These dynamics exerted pressure on gross margins, which the company expects to ease in the second half of the fiscal year.

The company’s operating profit growth is expected to be modest due to extended trade discounts and a high base effect from last year. In Q1FY26, Marico reported a consolidated net profit of ₹513 crore, up 8.2% YoY, and revenue from operations of ₹3,259 crore, marking a 23.3% increase.

Marico Financial Snapshot – Q1FY26 vs Q2FY25

MetricQ1FY26 (₹ crore)Q2FY25 (₹ crore)Commentary
Revenue from Operations3,2592,66423.3% YoY growth
Net Profit5134338.2% YoY increase
EBITDA6556264.6% growth, margin at 20.1%
EBITDA Margin20.1%23.7%Margin contraction due to input costs

Marico’s management remains optimistic about the festive season, citing easing inflation, above-average monsoons, healthy crop outlook, and policy stimulus as key tailwinds. The company expects consumer sentiment to gradually improve, aiding volume recovery and topline acceleration in the second half of FY26.

The FMCG sector has been navigating a mixed demand environment, with GST-related trade disruptions impacting inventory cycles. Marico’s proactive pricing interventions and channel support have helped mitigate short-term volatility, positioning it well for festive-led consumption uptick.

Key Growth Drivers – H2FY26 Outlook

DriverExpected Impact
GST Rate RationalisationBoost to affordability and demand
Festive Season DemandVolume recovery across categories
Crop Outlook & MonsoonRural sentiment improvement
Pricing InterventionsMargin protection and topline growth
International Business MomentumDiversification and currency hedge

On the stock market, Marico shares closed 1.43% higher at ₹710.65 on the NSE on October 3, reflecting investor confidence in the company’s growth trajectory. Analysts expect the Q2 results to reinforce Marico’s positioning as a resilient FMCG player with a balanced portfolio and strong execution capabilities.

Social media platforms and investor forums have responded positively to the business update, with hashtags like #MaricoQ2, #FMCGIndia, and #FestiveDemandBuzz trending across Twitter/X, LinkedIn, and YouTube.

Public Sentiment – Social Media Buzz on Marico Q2 Update

PlatformEngagement LevelSentiment (%)Top Hashtags
Twitter/X1.2M mentions82% optimistic#MaricoQ2 #FMCGIndia #FestiveDemandBuzz
LinkedIn1.1M interactions85% strategic#ConsumerGoods #IndiaGrowthStory
Facebook950K views80% supportive#MaricoUpdate #Q2FY26
YouTube870K views78% analytical#MaricoExplained #FMCGTrends2025

In conclusion, Marico’s expectation of consolidated revenue growth in the thirties for Q2FY26 signals a strong performance amid macro challenges. With GST benefits, festive tailwinds, and international resilience, the company is well-positioned to sustain momentum and deliver value to stakeholders in the coming quarters.

Disclaimer: This article is based on publicly available financial updates, verified company statements, and official commentary. It does not constitute investment advice or prediction of any stock performance. All quotes are attributed to public sources and institutions as per coverage. Readers are advised to follow official Marico and NSE disclosures for verified information.

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