Q1 2027 Marico Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 23% YoY with EBITDA and PAT up 25%, marking the highest profit growth in 28 quarters.
- India business delivered 11% volume growth and 21% revenue growth, with over 96% of the portfolio gaining or sustaining market share.
- Parachute achieved its strongest volume growth in 20 quarters (10% YoY) and gained over 400 basis points in volume share.
- International business grew 15% in constant currency, led by strong performance in Vietnam (27%) and MENA (24%).
- Foods portfolio crossed INR 1,300 crore annualized revenue run rate with 43% growth, and premium personal care scaled to INR 450 crore ARR.
- Digital-first portfolio (Beardo, Plix) achieved INR 1,100 crore ARR with improving profitability, and quick commerce grew over 50% for the core business.
- Saffola edible oil reported a high single-digit volume decline due to calibrated pricing actions and rationalization of select variants to maintain profitability.
- Bangladesh experienced transient moderation with only 4% constant currency growth due to high inflation and pricing anniversarization.
- Input costs for crude derivatives (LDPE, polymers) and vegetable oils are rising, with cost increases of 60-70% on some items, pressuring gross margins.
- The company expects higher input costs in Q2, which could limit near-term margin expansion despite copra price benefits.
- Management guided for only high single-digit volume growth in India for the full year, indicating that the 11% growth in Q1 is not expected to be sustained.
- Competition in the plant protein and ACV segments is intensifying, with new entrants and pricing pressure, though the company remains confident in its brands.
Ladies and gentlemen, good day and welcome to the Marico Limited Q1 FY27 earnings conference call. We have with us the senior management of Marico, represented by Mr. Saugata Gupta, MD and CEO, and Mr. Pawan Agrawal, Group CFO and CEO International Business. (Operator Instructions)
I now hand the conference over to Mr. Saugata Gupta. Thank you, and over to you.
Hi, good evening, everyone, and thanks for joining the call. I'll start with the perspective on the operating environment during the quarter gone by, after which I'll cover our performance, strategic priorities, and our outlook going forward. During the quarter, macro environment globally remained volatile with supply chain disruptions and increasing energy costs impacting economic activity.
Despite these global headwinds, India continued to demonstrate resilience backed by strong underlying fundamentals. Domestic demand remained healthy and economic activity continued to expand. While there was
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