This blog would make you understand which FMCG Stocks performed better in the last quarter of FY27 by taking a comparison of the financial statements of Marico, Emami and Zydus Wellness. We will discuss each company’s earnings and what makes each company’s stock look best for long-term growth, ranging from revenue growth, margin performance, key business drivers and beyond. This comparison will help those who follow the company or are interested in investing in the FMCG space to get a clearer picture of the company’s performance after the first quarter of FY27.
The rapid growth of the FMCG (fast moving consumer goods) market in India is still gaining investor interest due to its stability, consistent demand, and future growth. Investors are keen to understand not just the revenue and profit growth, but also margins, volume growth, pricing power and outlook on business for the Q1 FY27 earnings releases from companies. Quarterly results offer helpful information about the performance of some of the biggest FMCG firms facing inflationary pressures, shifting consumer preferences and distribution channels.
While Marico, Emami, and Zydus Wellness have all reported their first quarter results, each company has a different growth story to tell. One achieved a wider spread of growth with strong domestic demand, another enjoyed strategic acquisitions and the third was under pressure for profitability even though revenue growth was impressive. Investors can use this knowledge to determine which stock might be more suited for long-term investment.
Why Are FMCG Investors Watching These Q1 Results?
Earnings season for Q1 FY27 has highlighted the variability among FMCG companies in the approach to adjusting to real-world scenarios. While costs of raw materials and packaging are still facing inflationary pressures, new avenues of growth are opening up owing to increasing demand from the rural segment, launch of premium products, rising popularity of quick commerce, and acquisitions. Not only earnings but other factors like revenue growth, profitability, operating margins, and management expectations are becoming key metrics in the assessment of performance.
The three companies: Marico, Emami and Zydus Wellness each started out in FY27 with its own set of strengths and challenges. While Marico continued to grow consistently based on volume, Emami’s performance was strong on both fronts growth as well as by strategic acquisitions and demand for its premium offerings in the domestic market – and Zydus Wellness saw impressive revenue growth, albeit with a downbeat on bottom-line earnings initially due to acquisition-related write-offs. A comparison of the three companies can help to give a better idea of which company is the best performing in their growth strategy and which one may have the best long term investment opportunity.
Marico Q1 FY27: Good brand performance was the support for a consistent growth in the quarter.
Overall, Marico has performed well in its Q1 FY27 standing out from the three companies for showing well-rounded growth in revenue, profit and volumes. Its core brands had steady demand and the company’s top product line and international business were enhanced. This balanced performance highlights Marico’s ability to navigate inflationary pressures without compromising growth.
The company achieved solid revenue growth, driven by better domestic demand and volume growth in key categories. Popular brands like Parachute, Saffola and value added hair oils maintained the market while premium brands and foods continued to be key growth drivers. The international business also had strong momentum for Marico, positively affecting the overall revenue.
In terms of profitability, Marico was able to achieve operational profitability even as input costs increased. Its emphasis on product innovation, premiumisation and effective cost management ensured margins remained safe and cash flows were steady. The management also had faith that the demand situation would begin to improve, especially in rural areas, thanks to a positive monsoon and the gradual comeback of consumer confidence.
From an investor’s point of view, Marico remains an obvious choice due to its diversified brand list, robust distribution system, steady earnings quality and prudent capital allocation. The company has the leverage of being a stable performer across economic cycles and its ability to deliver strong growth in a commodity price environment has been one of its biggest advantages as a long term player in the FMCG space in India.
Emami Q1 FY27: Good revenue growth and margin pressures continue.
In general, it could be seen that Emami began its FY27 on a good note, as its consolidated revenues saw an increase of 15% compared to the last year’s figure to ₹1,039 crore, due to high consumer demand in the domestic market as well as increasing organized retail and digital channels.
The company also boosted its long-term growth plans with acquisitions. It has held a stake in Axiom Ayurveda (AloFrut) since then and it’s now increased its holding to 100% to make it a wholly owned subsidiary of it, and also it acquired a majority stake in the parent company of Vedix and SkinKraft, called IncNut. The moves are part of Emami’s efforts to strengthen their footprint in the fast-growing segment of personalised beauty and wellness and diversify their product range.
While top-line growth was strong, profitability was under pressure. Margins were affected by increased raw material costs and packaging costs, which resulted in slower EBITDA growth, and lower net profit for the quarter. Moreover, international business suffered as a result of geopolitical instability in West Asia, demonstrating the external factors affecting overseas business.
Emami’s overall performance was impressive with solid operational momentum, volume growth and strategic acquisitions. Investors will closely be looking to see whether a downtrend in commodity prices and the positive impact of better global demand will help the company turn its positive revenue growth into positive profitability in the near term.
Zydus Wellness Q1 FY27: Growth through acquisitions while dealing with profitability issues.
Total income in Zydus Wellness’ Q1 FY27 was nearly 67% higher at approximately ₹1,437 crore, mainly due to the merger of Comfort Click. The upbeat top-line growth is a testament to the company’s strategy of growth through acquisitions and bolstering the health and wellness business.
But there were significant acquisition costs with non-cash brand amortisation dragging on profits. While adjusted profit (excluding these one-time accounting impacts) grew healthily, net profit fell 7% year-on-year at ₹119 crore. EBITDA also grew at an impressive rate, albeit at slightly softer margins, resulting from integration costs.
The company’s diversified portfolio of wellness brands remains a key strength, and the deal is set to enhance the firm’s future growth prospects. But investors will need to watch the speed at which management absorbs the new business and begins to be profitable in the next few quarters.
Zydus Wellness’ overall revenue growth was good, but the earnings were affected due to acquisition expenses, unlike Marico. The future is good, but the continuing improvement of margins will be a key point to consider for investors.
Marico vs Emami vs Zydus Wellness Q1 FY27: Side-by-Side Comparison
| Metric | Marico | Emami | Zydus Wellness |
|---|---|---|---|
| Revenue Growth (YoY) | Strong double-digit growth driven by domestic and international demand | +15% to ₹1,039 crore | +66.8% to ₹1,437 crore (boosted by Comfort Click acquisition) |
| Net Profit (PAT) | Healthy profit growth with stable margins | ₹139 crore (-15.4% YoY) due to higher input costs and tax normalization | ₹119 crore (-7% YoY) due to acquisition-related amortization |
| EBITDA Performance | Stable operating margins despite inflation | EBITDA up 6% to ₹226 crore | EBITDA up 55% to ₹242 crore |
| Key Growth Drivers | Premiumisation, food portfolio, digital brands, international business | Strong domestic demand, strategic acquisitions, omnichannel expansion | Comfort Click acquisition, wellness portfolio expansion |
| Major Challenges | Higher input costs and competitive pricing | Raw material inflation, weaker international business | Higher acquisition costs and lower reported profitability |
| Positive Highlights | Consistent execution and resilient earnings | Domestic business grew 20%; strategic investments now contribute 18% of domestic revenue | Adjusted net profit grew 26.5%, indicating strong underlying business performance |
| Overall Outlook | Stable long-term FMCG compounder | Strong revenue momentum, but margins need monitoring | High-growth wellness play with integration risks in the short term |
Which FMCG Stock is the best to invest in today?
The three companies gave three different stories in Q1 of FY27 and they were of interest to various types of investors. Marico is unique in terms of consistent performance, profitability and a well diversified business footprint at home and abroad. It’s a well known brand with a solid long-term cash flow profile, and a premiumisation strategy that makes it one of the most dependable long-term investments in FMCG Stocks.
The strength of revenue and volume growth and strategic acquisitions coupled with its growing presence across multiple channels impressed Emami. In addition, the input costs and margin pressures had an impact on the profitability, which was an important consideration to monitor for continued earnings growth in the coming quarters.
Zydus Wellness recorded the fastest revenue growth mainly due to acquisitions. Reported profit fell as a result of acquisition costs, but the company’s profitability on an adjusted basis is improving and the expansion of the wellness portfolio suggests long-term promise. Successful integration of its acquired businesses will be key to sustaining future growth.
In overall performance, Marico can be considered to be the most balanced company, with a steady growth rate and an operational stability with a balanced financial performance, overall. Investors who prefer stability might find it suitable to invest in Marico, whereas those who can tolerate some more risk and growth may want to watch Emami and Zydus Wellness as their growth plans take shape.
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Final thoughts
The earnings season from Q1 FY27 is important as it reflects how each of the three companies experienced growth in their performance, but for different reasons. Marico was the best across all boards, due to its steady revenue performance, profitability and execution across its main brands. The company Emami has reported impressive topline and volume growth, backed by strategic acquisitions and expanding distribution, but with input costs continuing to put pressure on margins. While Zydus Wellness saw revenue growth of an outstanding magnitude due to the acquisitions, it was adversely impacted by integration costs in the short term.
The long-term investor’s decision comes down to investing objectives and risk tolerance. Investors wanting stability and regular income may prefer Marico, while those with more growth-oriented expectations might want to turn to Emami or Zydus Wellness because their growth phases are now coming to an end. However, consistent with either option, a thorough examination of quarterly earnings beyond the headlines is still vital to informed investment decision-making in the changing landscape of the FMCG industry.
FAQs
Which company’s Q1 FY27 performance was the best?
With steady revenue growth, profitability and operational efficiencies, Marico was the best overall performer, particularly with respect to its overall financial performance. Emami posted solid top-line growth whereas the company Zydus Wellness reported the maximum revenue growth mostly aided by acquisitions.
What caused Emami’s profit to go down when the revenue went up?
The quarter saw margins put under pressure due to higher raw material and packaging costs, offset by 15% revenue growth and tax normalization.
What was the reason for Zydus Wellness’ impressive revenue growth?
Zydus Wellness’ revenue increase was mainly due to the consolidation of the Comfort Click acquisition. These costs and brand amortisation affected its reported profitability, however.
Is Marico a good long-term FMCG investment?
The diversified brand portfolio and continuing emphasis on premiumisation, along with steady earnings growth and disciplined capital allocation will ensure Marico remains a robust long-term FMCG business. But investors always need to consider their own investing purpose and risk tolerance when evaluating investments.
What is the best way to compare the FMCG companies as investors?
When looking to invest in companies, investors should not just look at revenue or profit, but growth drivers, margins, volume growth, cash flows, valuation and future prospects. Platforms like Jarvis Invest can make this easier by uniting all essential financial information in a single location, making the process streamlined and efficient.