Marico shares jump 8% after Q2 results; CLSA, Morgan Stanley, Jefferies share targets
Marico reported consolidated revenue growth of 13% YoY in Q2 FY27, while Ebitda increased 27% to Rs 709 crore. Adjusted profit after tax rose 31% to Rs 550 crore.
- Nov 3, 2026,
- Updated Nov 3, 2026 10:38 AM IST
Shares of Marico Ltd surged 8% on Tuesday after the FMCG company reported strong September-quarter earnings. The company also raised its FY27 Ebitda growth guidance to the mid-twenties, prompting brokerages to revise their estimates and target prices.
Marico reported consolidated revenue growth of 13% YoY in Q2 FY27, while Ebitda increased 27% to Rs 709 crore. Adjusted profit after tax rose 31% to Rs 550 crore. The company's Ebitda margin expanded 196 basis points YoY to 18.2%. Gross margin improved by around 600 basis points, supported by lower copra prices and a favourable product mix.
The stock touched a high of Rs 865, up 8.40% from its previous close of Rs 797.90. It opened at Rs 833 and touched a low of Rs 828.10 during the session.
Domestic business volume grew 10% YoY, while Parachute volume increased 13%, its strongest growth in 22 quarters, according to the brokerage reports. Value-added hair oils recorded 21% volume growth, while Saffola edible oil volumes declined in high single digits amid selective supply rationalisation. International revenue grew 13% in constant-currency terms, led by Vietnam's 22% growth and 15% growth in the Middle East and North Africa and South Africa markets.
Management raised its FY27 Ebitda growth guidance to the mid-twenties from around 20% earlier, with consolidated revenue expected to grow in the mid-teens and India business volume growth projected in double digits. The company also expects to cross Rs 15,000 crore in revenue in FY27. Its longer-term revenue target of Rs 20,000 crore, initially set for FY30, is now expected to be achieved by FY29.
Brokerages largely remained positive on the company's growth outlook, although their valuations differed. Jefferies maintained its Buy rating and raised its target price to Rs 1,035, implying an upside of around 29% from its reference price. It highlighted strong volume and Ebitda growth, along with improved FY27 guidance.
Morgan Stanley retained its Overweight rating with a target price of Rs 954, implying around 19% upside. It said the strong quarterly performance and higher guidance strengthened its investment view. Macquarie maintained its Outperform rating and set a target price of Rs 965, citing improved growth visibility and margin expansion.
CLSA upgraded Marico to Hold from Underperform, while raising its target price to Rs 737 from Rs 703. The brokerage said the company's FY27 Ebitda growth guidance had improved to the mid-twenties, supported by procurement benefits, Project SETU and better profitability across growth businesses.
Shares of Marico Ltd surged 8% on Tuesday after the FMCG company reported strong September-quarter earnings. The company also raised its FY27 Ebitda growth guidance to the mid-twenties, prompting brokerages to revise their estimates and target prices.
Marico reported consolidated revenue growth of 13% YoY in Q2 FY27, while Ebitda increased 27% to Rs 709 crore. Adjusted profit after tax rose 31% to Rs 550 crore. The company's Ebitda margin expanded 196 basis points YoY to 18.2%. Gross margin improved by around 600 basis points, supported by lower copra prices and a favourable product mix.
The stock touched a high of Rs 865, up 8.40% from its previous close of Rs 797.90. It opened at Rs 833 and touched a low of Rs 828.10 during the session.
Domestic business volume grew 10% YoY, while Parachute volume increased 13%, its strongest growth in 22 quarters, according to the brokerage reports. Value-added hair oils recorded 21% volume growth, while Saffola edible oil volumes declined in high single digits amid selective supply rationalisation. International revenue grew 13% in constant-currency terms, led by Vietnam's 22% growth and 15% growth in the Middle East and North Africa and South Africa markets.
Management raised its FY27 Ebitda growth guidance to the mid-twenties from around 20% earlier, with consolidated revenue expected to grow in the mid-teens and India business volume growth projected in double digits. The company also expects to cross Rs 15,000 crore in revenue in FY27. Its longer-term revenue target of Rs 20,000 crore, initially set for FY30, is now expected to be achieved by FY29.
Brokerages largely remained positive on the company's growth outlook, although their valuations differed. Jefferies maintained its Buy rating and raised its target price to Rs 1,035, implying an upside of around 29% from its reference price. It highlighted strong volume and Ebitda growth, along with improved FY27 guidance.
Morgan Stanley retained its Overweight rating with a target price of Rs 954, implying around 19% upside. It said the strong quarterly performance and higher guidance strengthened its investment view. Macquarie maintained its Outperform rating and set a target price of Rs 965, citing improved growth visibility and margin expansion.
CLSA upgraded Marico to Hold from Underperform, while raising its target price to Rs 737 from Rs 703. The brokerage said the company's FY27 Ebitda growth guidance had improved to the mid-twenties, supported by procurement benefits, Project SETU and better profitability across growth businesses.