Marico's margin rebounds to 20.70% as Q1 revenue rises +21.42%
Revenue grew faster than expenses, while a lower tax rate supported the +27.10% year-on-year increase in consolidated net profit.
Filed 04 Aug 2026, 19:09 IST · after market close · Marico Ltd (MARICO)
Key takeaways
- Marico's consolidated operating margin rose 5.07 percentage points sequentially to 20.70% as revenue grew +18.72% while expenses grew +11.59%.
- Consolidated net profit grew +27.10% year on year, helped by a 4.33 percentage-point decline in the tax rate to 17.47%.
- Other income contributed 6.08% of consolidated profit before tax, while interest expense increased +110.00% year on year.
Price around the results
Revenue growth widened the operating spread
Marico's consolidated revenue grew +21.42% year on year in Q1FY27, and operating profit grew faster at +25.04%. Expenses rose +20.51%, slower than revenue, allowing operating margin to expand 0.60 percentage points year on year. Sequentially, the margin recovered 5.07 percentage points as revenue growth of +18.72% exceeded expense growth of +11.59%.
Margin recovery follows four-quarter volatility
Operating margin moved from 20.10% in Q1FY26 to 16.08% in Q2FY26, 16.74% in Q3FY26 and 15.63% in Q4FY26 before rebounding to 20.70% in Q1FY27. This was a sharp sequential reversal rather than a continuation of the preceding decline. Marico's margin was 4.55 percentage points above the 16.15% median of 25 Fast Moving Consumer Goods peers that had reported the quarter.
Lower tax rate lifted profit conversion
The consolidated tax rate fell 4.33 percentage points year on year and 1.58 percentage points sequentially to 17.47%, supporting net profit growth of +27.10% year on year. Other income accounted for 6.08% of profit before tax, so it was a meaningful but limited contributor to reported profit. Interest expense rose +110.00% year on year, which partly offset the operating improvement.
No market reaction yet after the late filing
The consolidated results were filed after market close, so there was no reported stock reaction at the time of this note. Across the last eight result-day reactions, Marico rose five times and fell three times, with a median absolute move of 3.50%; the recent moves ranged from -1.23% to +3.57%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,957 cr | ₹3,333 cr | +18.72% | +21.42% |
| Other income | ₹48 cr | ₹60 cr | -20.00% | -14.29% |
| Expenses | ₹3,138 cr | ₹2,812 cr | +11.59% | +20.51% |
| Operating profit | ₹819 cr | ₹521 cr | +57.20% | +25.04% |
| Operating margin (%) | 20.70% | 15.63% | — | — |
| Interest | ₹21 cr | ₹17 cr | +23.53% | +110.00% |
| Depreciation | ₹56 cr | ₹60 cr | -6.67% | +24.44% |
| Profit before tax | ₹790 cr | ₹504 cr | +56.75% | +20.43% |
| Tax | ₹138 cr | ₹96 cr | +43.75% | -3.50% |
| Net profit | ₹652 cr | ₹408 cr | +59.80% | +27.10% |
| EPS (₹) | ₹4.86 | ₹3.04 | +59.87% | +24.62% |
Operating margin of 20.70% compares with a Fast Moving Consumer Goods sector median of 16.15% across 25 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 20.70% after the Q1FY27 rebound.
- Whether the consolidated tax rate remains near 17.47% rather than returning to 21.80% recorded in Q1FY26.
- Whether interest expense moderates after its +110.00% year-on-year increase.