Marico's Q2 Ad Spend Surges 44% to ₹451 Crore, Profit Up 31%
Marico's advertising expenses rise significantly as profits and revenue show robust growth in Q2FY27.
Advertising and promotion expenses reached ₹451 crore, up 44% year-on-year.
Consolidated net profit increased by 31% to ₹550 crore.
Revenue from operations rose 13% to ₹3,897 crore, reflecting strong brand investments.
In the second quarter of fiscal year 2027, Marico Ltd. reported a substantial increase in its advertising and sales promotion expenditures, which rose by 44% to ₹451 crore, compared to ₹313 crore in the same quarter last year. This spending accounted for 11.6% of the company's revenue, a notable increase from 9.1% in Q2FY26, indicating a strategic push to enhance brand visibility and support growth initiatives.
The rise in advertising expenses coincided with a 13% increase in consolidated revenue from operations, which reached ₹3,897 crore, up from ₹3,450 crore in the previous year. Marico attributed the higher investments in advertising to its commitment to strengthening brand presence and driving growth across its product lines. The company's consolidated net profit also saw a significant uptick, rising 31% to ₹550 crore from ₹420 crore, while EBITDA climbed 27% to ₹709 crore, reflecting effective cost management and operational efficiency.
Marico's EBITDA margin expanded by 200 basis points to 18.2%, compared to 16.2% in the corresponding quarter last year. This margin improvement was largely driven by a nearly 600-basis-point enhancement in gross margins, aided by a favorable product mix and decreased copra prices. The company's India business reported a 10% growth in revenue, amounting to ₹2,916 crore, supported by an underlying volume growth of 10%. Notably, over 95% of Marico's business maintained its market share and penetration on a moving annual total basis.
Among the company's key product segments, Parachute Rigids experienced a 13% increase in volume, while Value-Added Hair Oils saw a remarkable 21% growth in value. The foods segment also performed exceptionally well, growing by 45% and surpassing an annualized revenue run rate of ₹1,500 crore. For the first half of FY27, Marico's overall revenue from operations increased by 18% to ₹7,854 crore, with net profit rising 28% to ₹1,180 crore, and EBITDA growing 26% to ₹1,528 crore.
Saugata Gupta, Managing Director and CEO of Marico, emphasized that the strong performance in the first half of the fiscal year reflects the company's diversified business model and its capability to generate growth across various commodity cycles. He reiterated the company's commitment to ongoing investments in its brands, workforce, and operational capabilities to sustain this growth trajectory.
