Marico’s Q2FY26 ad spends up 19% to Rs 345 crore, revenue growth by 31%

New Delhi: Marico ramped up its advertising and sales promotion (A&P) investments in the September quarter of FY26, spending Rs 345 crore in Q2FY26 compared to Rs 290 crore a year ago, a 19 per cent year-on-year increase. 

A&P intensity, however, moderated to 9.9 per cent of revenues from 10.9 per cent in Q2FY25 as strong topline growth expanded the base. 

For the half year, the FMCG major spent Rs 644 crore on advertising and sales promotion, up around 22 per cent from Rs 530 crore in H1FY25. On a six-month basis, A&P stood at 9.6 per cent of revenue versus 10 per cent a year earlier, indicating continued brand investments even as the mix shifts towards newer growth engines such as foods and premium personal care.

Marico’s consolidated revenue from operations rose 31 per cent year-on-year to Rs 3,482 crore in Q2FY26, driven by 7 per cent domestic volume growth and 20 per cent constant-currency growth in the international business. 

EBITDA increased 7 per cent to Rs 560 crore, while recurring profit after tax grew 8 per cent to Rs 420 crore. EBITDA margin contracted 350 basis points to 16.1 per cent as sharp inflation in key commodities compressed gross margins despite higher pricing and ml-age actions.

The India business reported revenues of Rs 2,667 crore, up 35 per cent year-on-year, aided by price hikes in core portfolios in response to input cost inflation. 

More than 95 per cent of the domestic portfolio gained or sustained market share and over 75 per cent gained or sustained penetration on a moving annual total basis, the company said.

Parachute Rigids saw a 3 per cent volume decline amid unprecedented hyperinflation in copra, though volumes were broadly flat after normalising for ml-age reductions. 

Brand revenues surged 59 per cent, and Marico said it rationed supplies to some institutional customers to protect profitability. Value Added Hair Oils delivered 16 per cent value growth in the quarter and gained 150 basis points in value market share.

Saffola Edible Oils volumes were flattish in a relatively elevated pricing environment, but the brand posted 19 per cent revenue growth. The newly launched Saffola Cold Pressed Oils range continued to scale on e-commerce and quick-commerce platforms.

The foods portfolio grew 12 per cent and crossed an annualised run rate of over Rs 1,100 crore in Q2, led by Saffola Oats, which retained its number-one position in the oats category. 

True Elements and Plix’s plant-based nutraceuticals maintained strong growth momentum, with True Elements expanding its ready-to-eat range with high-protein, high-fibre protein bars and overnight oats. Premium personal care sustained an accelerated trajectory, with the digital-first portfolio of Beardo, Just Herbs and Plix’s personal care business crossing Rs 1,000 crore in annualised revenue run rate.

In the international business, Marico reported 20 per cent constant-currency growth in both Q2FY26 and H1FY26. Bangladesh grew 22 per cent, Vietnam 6 per cent, MENA 27 per cent and South Africa 1 per cent in constant currency during the quarter, while the newer countries development and exports business recorded 53 per cent growth.

The company said it expects steady growth in core categories despite near-term input cost headwinds, supported by GST rate rationalisation benefits, expansion of direct reach under Project SETU and continued premiumisation through foods and digital-first personal care brands.