Marico’s margin falls sequentially despite 12% revenue growth year on year
Costs rose while revenue slipped sequentially, but lower taxes and stronger operating profit lifted net profit 29.17% year on year.
Filed 02 Nov 2026, 21:03 IST · after market close · Marico Ltd (MARICO)
Key takeaways
- Consolidated revenue grew +11.92% year on year and operating margin expanded 2.11 percentage points to 18.19%.
- Sequentially, operating margin fell 2.51 percentage points as expenses rose +1.59% while revenue declined -1.52%.
- Net profit grew +29.17% year on year, helped by a 4.24-percentage-point fall in the tax rate, while other income contributed 7.86% of pre-tax profit.
Price around the results
Year-on-year growth improved operating leverage
Marico’s consolidated revenue rose +11.92% year on year to Rs 3,897 cr, while expenses grew more slowly at +9.10%. That gap lifted operating margin by 2.11 percentage points and operating profit by +26.61% to Rs 709 cr. Net profit rose +29.17% to Rs 558 cr, although interest expense doubled year on year to Rs 24 cr.
Sequential margin reversal followed a softer quarter
Revenue declined -1.52% sequentially while expenses increased +1.59%, causing operating margin to narrow 2.51 percentage points to 18.19%. This reversed the 20.70% margin reported in Q1FY27, after margins had recovered from 15.63% in Q4FY26. The latest margin remains above the 16.08% recorded in Q2FY26.
Lower tax rate supported profit quality
The tax rate fell 4.24 percentage points year on year to 17.21%, helping net profit grow faster than pre-tax profit, which increased +22.55%. Other income was 7.86% of pre-tax profit, so a meaningful part of earnings came from below-operating-line income. Marico’s 18.19% operating margin was 5.93 percentage points above the 12.26% median of 38 Fast Moving Consumer Goods peers that had reported.
Market reaction will follow an after-close filing
The consolidated results were filed after market close, so no market reaction is included yet. Across eight recent result reactions, the stock rose five times and fell three times, with a median absolute move of 2.98%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,897 cr | ₹3,957 cr | -1.52% | +11.92% |
| Other income | ₹53 cr | ₹48 cr | +10.42% | +8.16% |
| Expenses | ₹3,188 cr | ₹3,138 cr | +1.59% | +9.10% |
| Operating profit | ₹709 cr | ₹819 cr | -13.43% | +26.61% |
| Operating margin (%) | 18.19% | 20.70% | — | — |
| Interest | ₹24 cr | ₹21 cr | +14.29% | +100.00% |
| Depreciation | ₹64 cr | ₹56 cr | +14.29% | +36.17% |
| Profit before tax | ₹674 cr | ₹790 cr | -14.68% | +22.55% |
| Tax | ₹116 cr | ₹138 cr | -15.94% | -1.69% |
| Net profit | ₹558 cr | ₹652 cr | -14.42% | +29.17% |
| EPS (₹) | ₹4.24 | ₹4.86 | -12.76% | +30.86% |
Operating margin of 18.19% compares with a Fast Moving Consumer Goods sector median of 12.26% across 38 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 18.19% after the sequential decline of 2.51 percentage points.
- Whether expenses remain below the pace of revenue growth after rising +1.59% sequentially against a -1.52% revenue move.
- Whether the tax rate stays near 17.21% and other income remains below 7.86% of pre-tax profit.