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Marico sees copra prices ease 35% from peak

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In short

The company capitalized on softer input expenses to expand consolidated EBITDA by 27% to Rs 709 crore during the second quarter. Revenue from operations climbed 13% year-on-year to Rs 3,897 crore, supported by robust performances across both domestic and overseas segments. Notably, Parachute Rigids spearheaded domestic volume gains by posting its strongest growth rate in 22 quarters, which pushed its market share to 60%.

Key points

  • Parachute Rigids achieved a 13% volume increase, lifting its volume market share to 60%.: Parachute Rigids achieved a 13% volume increase, lifting its volume market share to 60%.
  • Marico projects full-year FY27 consolidated revenue to comfortably surpass the Rs 15,000…: Marico projects full-year FY27 consolidated revenue to comfortably surpass the Rs 15,000 crore mark.
  • Rising inflation in vegetable oils and crude derivatives presents potential cost risks fo…: Rising inflation in vegetable oils and crude derivatives presents potential cost risks for upcoming quarters.

Sources checked by our analysis pipeline: 1

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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, Parachute Rigids 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…

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