have eased around 35% from their peak levels last year, supporting a sharp expansion in gross margins during the September quarter, FMCG giant said on Monday.




However, the company flagged inflation in crude-linked derivatives and vegetable oil prices, driven by geopolitical developments and weather-related concerns, as key monitorables for the coming quarters.




The easing in copra prices, along with a favourable product mix, helped Marico expand its gross margin by around 600 basis points in Q2 FY27. Consolidated EBITDA rose 27% year-on-year to Rs 709 crore, while EBITDA margin improved 200 basis points to 18.2%. Profit after tax increased 31% to Rs 550 crore.




The improvement in profitability came even as the company stepped up advertising and promotion spending by 44% during the quarter, indicating continued investment behind its brands.




In the India business, recorded volume growth of 13%, its highest in 22 quarters, while its volume market share rose to 60%, with a gain of more than 570 basis points. Revenue growth, however, was around 1%, reflecting the anniversarisation of earlier pricing actions and price reductions taken at the beginning of the year following the easing in copra prices.




Marico said the domestic business grew 10% in underlying volume terms, with India revenue rising 10% to Rs 2,916 crore. Consolidated revenue from operations increased 13% to Rs 3,897 crore.



Cost inflation remains a monitorable


While the correction in copra prices has provided relief to the company's cost base, Marico cautioned that crude-linked derivatives and vegetable oil prices have seen further inflation. The company attributed these pressures to geopolitical developments and weather concerns.




The outlook for input costs will therefore remain important for margins, particularly as the company balances pricing, volume growth and investments behind its brands. Marico said demand trends remained healthy, supported by favourable policy stimulus, while geopolitical volatility and rising crude and were among the factors it would continue to monitor.



Marico FY27 growth outlook


Marico expects to deliver revenue growth in the teens in FY27 and comfortably cross Rs 15,000 crore in revenue, alongside mid-twenties growth in EBITDA. It expects India to sustain double-digit volume growth, while constant-currency growth in the international business is expected to accelerate in the second half.




The company reported 13% constant-currency growth in its international business during Q2, with revenue rising 23% in rupee terms.