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Marico sees copra prices ease 35% from peak, but crude-linked costs and vegetable oil inflation pose risks

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Marico sees copra prices ease 35% from peak, but crude-linked costs and vegetable oil inflation pose risks

Marico sees copra prices ease 35% from peak, but crude-linked costs and vegetable oil inflation pose risks

Marico reported a significant expansion in gross margins due to a 35% decrease in copra prices. The company achieved a 27% year-on-year growth in consolidated EBITDA, indicating strong profitability. While Parachute volumes grew, revenue growth was limited primarily due to prior price reductions. Marico cautioned about ongoing inflation in crude-linked derivatives and vegetable oils impacting future margins.

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Copra prices have eased around 35% from their peak levels last year, supporting a sharp expansion in gross margins during the September quarter, FMCG giant Marico said on Monday.

However, the company flagged inflation in crude-linked derivatives and vegetable oil prices, driven by geopolitical developments and weather-related concerns, as key monitorables for the coming quarters.

The easing in copra prices, along with a favourable product mix, helped Marico expand its gross margin by around 600 basis points in Q2 FY27. Consolidated EBITDA rose 27% year-on-year to Rs 709 crore, while EBITDA margin improved 200 basis points to 18.2%. Profit after tax increased 31% to Rs 550 crore.

The improvement in profitability came even as the company stepped up advertising and promotion spending by 44% during the quarter, indicating continued investment behind its brands.

In the India business, Parachute Rigids recorded volume growth of 13%, its highest in 22 quarters, while its volume market share rose to 60%, with a gain of more than 570 basis points.


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