Marico expects double-digit volume growth for its India business in the second quarter. The company said, "Consolidated revenue is expected to grow in double digits with strong performance across our core, digital and international portfolios." Strong sales in hair oils and international markets helped Marico beat its near-term guidance.
"Consolidated revenue is expected to grow in double digits with strong performance across our core, digital and international portfolios, underscoring the effectiveness of our strategic priorities and execution discipline," Marico said in its regulatory filing.
Marico: Parachute, hair oils drive India business
Marico expects its India business to maintain strong momentum, with underlying volume growth touching double digits during the quarter.
Parachute Coconut Oil is expected to post early-teens volume growth, continuing its strong performance. The company attributed the growth to the brand's strong equity, consumer trust and supply chain advantages.
Value Added Hair Oils are expected to deliver growth in the twenties for the sixth consecutive quarter. Marico said the performance reflects the strength of the franchise and a structural improvement in its growth trajectory.
The company expects investments in the mid and premium segments, higher direct reach through Project SETU and strong growth in the Almond category to support the segment going ahead.
Saffola Oils, meanwhile, is expected to report mid-single-digit price-led growth. Volumes declined during the quarter as Marico focused on maintaining threshold profitability and rationalised the supply of select variants.
Marico: Foods, personal care support diversification
Marico said its Foods and Premium Personal Care businesses, including digital-first brands and shampoo, continued to grow in line with its expectations.
The company expects these newer businesses to further support its diversification strategy and become an increasingly important part of its growth portfolio.
Marico: International business remains strong
Marico expects its international business to deliver constant-currency growth in the teens during the quarter.
Vietnam, the Middle East and South Africa are expected to lead the performance. Bangladesh showed a marginal sequential improvement, although the business continued to face a high base and persistently elevated inflation.
Marico: Q2 gross margin expected to improve
On the cost front, Marico said crude-linked derivatives became more expensive during the quarter, while copra prices, a key raw material for Marico, remained rangebound at around 35% below their peak levels.
"We expect strong acceleration in gross margin on a year-on-year basis led by favourable portfolio mix and tailwind from copra prices," Marico said.
At the same time, Marico increased advertising and sales promotion investments significantly as it continued to spend on brand building and growth initiatives.
The company expects operating profit to grow in the mid-twenties during the quarter.
Marico expects to beat near-term guidance
Marico said its strong performance during the first half of FY27 puts it on track to surpass its near-term guidance across key financial parameters.
"With a strong performance through the first half of the year, we are likely to surpass our near-term guidance across key financial parameters, anchored in the sustained strength of our core franchises and the scale-up of new growth engines," the company said.