Marico Q1 FY27 Results (NSE: MARICO)
Signal: Steady quarter
The read
Marico delivered a robust Q1 with 22.9% revenue growth and operating EBITDA margin expanding 40bps YoY (and sharply up 490bps QoQ), signalling a turnaround from the margin compression trend seen through FY26. Raw material cost pressure (copra inflation) was managed via pricing and mix, keeping gross margin steady. PAT growth of 27.1% was aided by a lower tax rate. The key trajectory takeaway: operating momentum is strong, but input cost trends and sustainable margin improvement need monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,957 Cr | 22.9% | 19.9% |
| EBIT | ₹819 Cr | 25.0% | |
| Net profit | ₹652 Cr | 27.1% | |
| EPS | ₹4.86 | 24.6% | |
| EBIT margin | 20.7% |
P&L walk
Revenue grew 22.9% YoY driven by volume and mix. Gross margin edged up 30bps to 46.6% despite raw material cost % rising sharply (44.2% vs 36.8% YoY), indicating pricing power. Operating EBITDA margin expanded 40bps YoY to 20.7%, with employee cost growing broadly in line and A&P spend stable. PAT grew faster than operating profit aided by lower effective tax rate (17.5% vs 21.8% YoY). EPS growth of 24.6% lagged PAT growth marginally due to minor dilution from ESOP.
Key positives
- Revenue growth of 22.9% YoY, accelerating from prior year trends.
- Operating EBITDA margin expanded 40bps YoY and 490bps QoQ to 20.7%.
- PAT grew 27.1% YoY to ₹652 Cr, supported by lower effective tax rate.
- EPS ₹4.86, up 24.6% YoY.
Key concerns
- Raw material cost as % of revenue surged from 36.8% to 44.2% YoY, indicating input cost inflation.
- Finance cost more than doubled YoY to ₹21 Cr due to higher debt and interest rates.
- Other income declined 14.3% YoY to ₹48 Cr, reducing a cushion for bottom line.
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