Archive · 14 Nov 2025
Marico Q2 FY26: Profit Dips Marginally Amid Revenue Growth and Margin Pressure
Marico, a big company that makes everyday products like hair oil and food, had a mixed financial report for the summer and fall of 2025.
While they sold more products than last year, making over 3,400 crore rupees, their profit went down just a tiny bit, to about 432 crore rupees.
This happened because the cost of ingredients they use went up a lot, making it harder to earn as much from each sale.
Even with these challenges, Marico decided to spend more money to make their brands stronger and offer new types of products.
Their sales within India grew a lot, and their sales in other countries also increased.
The company is focusing on growing its business and exploring new areas, even when things are a bit more expensive.
Marico's net profit for Q2 FY26 fell by 0.7% year-on-year to ₹432 crore.
Consolidated revenue from operations surged by 30.7% to ₹3,482 crore in Q2 FY26.
Gross margins contracted by 810 bps year-on-year due to significant commodity inflation.
Domestic revenue increased by 34.76% and international revenue grew by 19% in Q2 FY26.
Marico continued to invest in brand building and portfolio diversification, increasing A&P spending by 19%.
- Who
- Marico
- What
- Reported a 0.7% year-on-year decline in consolidated net profit to ₹432 crore, while consolidated revenue from operations increased by 30.7% to ₹3,482 crore. Gross margins contracted by 810 bps due to commodity inflation.
- When
- Q2 FY26 (Quarter ended September 2025)
- Where
- India (domestic market and international operations)
- Why
- Net profit declined due to significant commodity inflation impacting gross margins, despite strong revenue growth driven by both domestic and international businesses. The company continued to invest in brand building and diversification.
Company Performance
Market Factors
Profitability vs. Revenue Growth
Company Performance
Marico reported a slight year-on-year decline in net profit, despite a significant increase in consolidated revenue.
Market Factors
The profit dip was attributed to 'sharp inflation in key commodities' exerting pressure on margins, which contracted significantly.
Investment Strategy
Company Performance
The company continued to invest in strengthening its brands and diversifying its portfolio, increasing A&P spending by 19% YoY.
Market Factors
These investments were made 'despite these headwinds' of margin contraction and commodity inflation.
- Company
- Marico
- Reporting Period
- Q2 FY26 (Quarter ended September 2025)
- Consolidated Net Profit (Q2 FY26)
- ₹432 crore
- Consolidated Net Profit (Q2 FY25)
- ₹433 crore
- Consolidated Revenue from Operations (Q2 FY26)
- ₹3,482 crore
- Revenue Growth (Q2 FY26 YoY)
- 30.7%
- Gross Margin Contraction (Q2 FY26 YoY)
- 810 bps
- Domestic Revenue Growth (Q2 FY26 YoY)
- 34.76%
- International Revenue Growth (Q2 FY26 YoY)
- 19%
