Q2 results impact: Marico shares jump 3% as analysts see EBITDA growth in H2; should you buy, sell or hold?

Marico Q2 Results

The shares of Marico jumped more than 3 percent in the early trading hours of November 17 after the company released its results for the second quarter of the financial year 2026. Brokerages remain optimistic about the stock despite margin contraction during the quarter under review.

The shares of the FMCG-major were trading at Rs 764.65 apiece in the early trading hours of Monday. The company had released its results on November 14 (Friday).

Marico Q2 Results:

Marico on November 14 reported a net profit of Rs 420 crore for the July-September quarter of FY26, marking a marginal fall from the Rs 423 crore net profit reported in the same quarter of the previous financial year. However, after adjusting for one-offs in the base quarter, profit rose 8 per cent YOY, the company said.

The Parachute hair oil-maker’s revenue from operations rose 31 percent year-on-year (YoY) to Rs 3,482 crore, driven by broad-based growth across its product portfolio.

EBITDA margin declined 350 basis points to 16.1 percent in the quarter as inflation in key commodities such as copra exerted pressure, while EBITDA grew 7 percent to Rs 560 crore.

"We witnessed steady demand trends in India during the quarter, except for the transitionary disruption in trade channels ahead of the implementation of new GST rates in the month of September," Marico said in a statement. India business delivered robust performance with volumes growing 7 per cent YOY and revenue up 35 per cent at Rs 2,667 crore in the quarter, aided by price hikes in core portfolios in response to sharp inflation in key input costs.

JM Financial on Marico:

JM Financial kept a ‘Buy’ call on the stock, and raised its target price to Rs 850 per share from Rs 825 per share. This implies an upside potential of more than 15 percent from the stock’s previous closing price.

The domestic brokerage said that Marico’s Q2 earnings were in-line with pre-quarter update. It noted that the domestic revenue growth of 35 percent was “best in class among the Staples peers”.

The margin compression was predominantly driven by copra inflation led impact on Parachute profitability, JM Financial said, while adding that revenue momentum is likely to remain healthy henceforth, with gross margins likely to improve QoQ benefitting from copra moderation, which in turn would result in double digit EBITDA growth for H2.

“Marico’s overall margins could be higher (vs. historical margins) over next 2-3 years. Marico remains our preferred pick in the space,” it said.

Motilal Oswal Financial Services on Marico:

Motilal Oswal Financial Services kept a ‘Buy’ call on the stock, with a target price of Rs 850 per share. This implies an upside potential of 15 percent from the stock’s previous closing price. The domestic brokerage noted that domestic revenue growth was 35 percent YoY with volume growth of 7 percent.

“Domestic revenue growth was driven by strong core category growth and sustained success for its new growth drivers. Parachute coconut oil (PCNO) posted a 59% YoY value growth with a 3% volume decline, primarily driven by price hikes. Copra prices have already corrected by about 15% from the peak levels seen in 2Q, and management expects a more meaningful softening from March onward,” the domestic brokerage said.

Although rising input costs may weigh on near-term margins, the outlook for H2 FY26 remains positive, it added. “The company aims to deliver a double-digit PAT CAGR over the next two years, and we project 13% PAT CAGR over FY25–28E. Given the sustained growth trajectory, we believe the stock’s premium valuation is likely to be sustained,” it further said.

HSBC on Marico:

HSBC kept a ‘Buy’ call on the stock, with a target price of Rs 870 per share. This implies an upside potential of nearly 18 percent from the stock’s previous closing price. The brokerage said that the firm saw a temporary slowdown in foods but the long-term story remains intact.

Antique Stock Broking on Marico:

Antique Stock Broking maintained a 'Buy' call on the stock, but raised its target price to Rs 900 per share from Rs 863 per share. The brokerage said that the firm's Q2 results showed an "outperformance" among consumer staple companies.

It added that despite sharp parachute oil price hikes to mitigate cost inflation in key commodity copra, volume decline was only 3 percent.

Centrum on Marico:

Centrum maintained a 'Neutral' rating on the stock, and raised its target price to Rs 785 per share from Rs 740 per share. The brokerage said that Marico's margins are set to recover as copra prices correct from peak levels after new crop in March.

It added that the company is likely to see a  trend reversal in FY27 from FY26, with revenue growth moderating and margins expanding.

Ambit Capital on Marico:

Ambit Capital maintained a 'Buy' rating on the stock, while raising its target price to Rs 841 per share from Rs 810 per share. The brokerage said that the company remains on track for much-needed diversification through aggressive scale up of non-oils portfolio.

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