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Consol. revenue up in double digits; operating profit grows in mid-20s

Business overview

* Domestic demand remained resilient during the quarter even as the operating environment was volatile through the period. MRCO remains optimistic about consumption trends, though it is closely monitoring the evolving inflationary conditions.

* Domestic business maintained its strong momentum and delivered another robust quarter, with underlying volume growth touching double digits (our volume est. 11.3%, 1QFY27: 11%; 2QFY26: 7%).

* Consolidated revenue is expected to grow in double digits (our est. 18%, 1QFY27: 22.9%; 2QFY26: 29.5%) with strong performance across its core, digital and international portfolios, underscoring the effectiveness of its strategic priorities and execution discipline.

International business

* In 2QFY27, international business delivered a robust quarter with constant currency growth in teens, led by strong performance in Vietnam, the Middle East and South Africa.

* Bangladesh witnessed a marginal sequential improvement on a high base and amid persistently elevated inflation.

Costs and margins

* Among key inputs, the cost of crude-linked derivatives rose further, while copra prices remained range-bound – ~35% below peak levels.

* MRCO expects strong expansion in gross margin YoY, led by a favorable portfolio mix and tailwinds from copra prices.

* ASP investments increased significantly as MRCO continued to invest in brand building and growth initiatives.

* Overall, MRCO expects operating profit to grow in mid-20s (our est. 25% YoY, 1QFY27: 25%; 2QFY26: 7%).

Segments

* Parachute Coconut Oil maintained its strong performance with early-teen volume growth – a testament to the brand’s formidable equity, deep consumer trust and MRCO’s supply chain-led competitive advantage.

* Saffola Oils delivered mid-single-digit price-led growth, though volumes declined as the company focused on maintaining threshold profitability and rationalized supply of select variants.

* Value-Added Hair Oils reported stellar growth for the sixth consecutive quarter, touching 20s in the second straight quarter. The performance reflects the strength of the franchise and the structural shift in its growth trajectory, aided by investments in the mid and premium segments, enhanced direct reach through Project SETU and aggressive growth in the Almond category. * Foods and Premium Personal Care (including digital-first brands and shampoo) maintained its growth momentum in line with MRCO’s aspirations, further accelerating the pace of MRCO’s diversification journey

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