Marico Q1 FY27 Earnings Call: EBITDA/PAT Grew 25%, Best in 28 Quarters, Parachute Rigids Volumes Up 10%

Marico Ltd held its Q1 FY27 earnings call on August 04, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Strongest Profit Growth in 28 Quarters

• Consolidated revenue grew 23% and EBITDA/PAT grew 25% in Q1 FY 2026-2027 — management reported this as the highest profit growth in 28 quarters.
• India business delivered 11% volume growth and 21% revenue growth in Q1 FY 2026-2027, with over 96% of the business gaining or sustaining market share.
• Parachute Rigids volume grew 10% (best in 20 quarters), gaining 400 bps volume share in Q1 FY 2026-2027.
• EBITDA margin of 20.7% expanded 40 bps YoY; gross margin expanded 30 bps YoY in Q1 FY 2026-2027.
• A&P spend grew 25% in Q1 FY 2026-2027, reinvesting cost savings behind core brands, new launches, and digital initiatives.
• Effective tax rate of 17.5% in Q1 FY 2026-2027; guided tax rate is ~18% for FY 2026-2027 and 19-20% for FY 2027-2028.

Parachute, Saffola and Foods Drive Broad-Based Growth

• Value-added hair oils grew 22% value in Q1 FY 2026-2027; Foods business grew 43% to an annualised revenue run rate of √1,300 crore.
• Parachute volume guidance for FY 2026-2027 remains mid-single digit — management does not expect the 10% Q1 pace to sustain.
• The only Parachute price action was a 10% reduction in non-MH packs taken in Q4 FY 2025-2026; no further pricing intervention is planned in the near term.
• Saffola is undergoing a structural portfolio reset with mid single-digit volume growth expected; management stated food will become the larger component of the brand architecture “in a couple of years.”
• Cold pressed oils are a “category of the future” per management, expected to become a sizable portion of Saffola by FY 2027-2028 with gross margins “far superior” to core edible oil.
• Management expects to maintain double-digit growth in the mid and premium segment for FY 2026-2027, aiming for high teens volume growth in Waho.

Global Momentum and D2C Buildout

• International business constant currency growth was 15% in Q1 FY 2026-2027: Vietnam 27%, MENA 24%, Bangladesh 4%.
• Three D2C acquisitions (Plum, Cosmic, overseas brands) closed early FY 2026-2027; management stated the digital portfolio targets “√4,000 crore revenue with early-teens EBITDA by 2030.”
• Quick commerce contributes ~5% of India business revenues (ex-digital brands) and grew >50%; digital channels account for >20% of India business revenues in Q1 FY 2026-2027.
• Management prioritises 20-25% growth with profitability for digital brands: Beardo is on double-digit profitability, Clix is high single-digit trending toward double-digit.
• Other digital brands are expected to reach profitability over the next 12-18 months with low burn.
• General trade remains a sustainable competitive advantage per management, underpinned by 3-4 years of distribution and technology investment.

Expansion Amid Input Cost Headwinds

• Gross margin expanded 30 bps in Q1 FY 2026-2027 vs Q1 FY 2025-2026; full-year gross margin likely held flat as lower copra costs offset 60-70% cost increases in crude-linked derivatives and edible oils.
• Copra prices are expected range-bound at 30-35% below peak levels with a slight upward bias.
• EBITDA margin guidance for FY 2026-2027 is high teens with management aspiring to 20%+ EBITDA growth, implying 140-150 bps margin expansion vs FY 2025-2026 — described as “aspirational” and not conservative.
• EBITDA growth of 20% targeted for FY 2026-2027, with profitability improvement in food and digital brands plus raw material benefits as contributors.
• Higher input costs expected in Q2 FY 2026-2027 from crude and vegetable oils with an upward bias.

Shampoo, Almond Oil and Premium Personal Care

• Parachute Advanced shampoo targets √100 crore in the first year (FY 2026-2027), leveraging Parachute’s equity in naturals and Setu’s distribution; management expects the “shampoo portfolio will become a major growth pivot over the next 3-4 years.”
• Almond hair oil target: √100 crore brand by FY 2027-2028, disrupting a category where management noted the market leader enjoys supernormal profits without significant innovation.
• Premium personal care achieved an annual revenue run rate of √450 crore+, driven by the shampoo launch.
• Management cited a proven shampoo model in international markets (Bangladesh after 4-5 years, Middle East after 2-3 years of sustained growth) as a blueprint for India.
• Body lotion category was deprioritised due to low penetration, shrinking winter season, and a shift to low-margin OT-driven brands that no longer fit the “fewer, bigger, bolder” criteria.

FY27 Aspirations and Vision 2030

• Management aims to cross √15,000 crore in revenue for FY 2026-2027, with double-digit revenue growth guided.
• India high single-digit volume growth guided for FY 2026-2027; international mid-teens constant currency EBITDA growth guided for FY 2026-2027.
• Management stated “Vision 2030 targets √20,000 crores revenue with mid-teens EBITDA CAGR.”
• Almond oil franchise target: √100 crore+ ARR by FY 2027-2028.
• Government actions were cited by management as “insulating consumers from significant inflation,” supporting management’s optimism on domestic consumption despite global challenges.
• Management confirmed focus on driving “consistent, profitable, and sustainable value creation” for all stakeholders.