Marico Targets 25% Rise In FY26 Revenue Led By Strong Volume Growth

Leading FMCG company Marico Ltd. is targeting a revenue growth of 25% in FY26, according to its MD and CEO, Saugata Gupta. A steady increase in sales volume and the rise in international business will aid the revenue growth in the remaining quarters of the current financial year.

“We firmly believe that we have a shot at doing a double-digit volume growth in one or two quarters this year, in conjunction with the fact that the international business will continue to deliver double-digit mid-teens constant currency growth. We expect revenue growth in the zone of 25% plus or minus,” he said during a conversation with NDTV Profit.

Gupta noted that Marico’s India business has seen consistent volume growth, reaching 9% year-on-year (YoY) in Q1FY26.

“We’ve moved from 6% to 9% sequentially over recent quarters,” he added.

Marico is currently grappling with "unprecedented inflation" in the cost of copra. It is a key ingredient for its flagship Parachute coconut oil brand. The surge in raw material prices forced the company to implement a weighted average price increase of around 60%.

Gupta also mentioned the hyperinflationary cycles in 2014-15 and 2017-19, which were subsequently followed by deflationary periods that allowed margins to recover.

“We hope to get in the second half, you know, the margins coming back, but as I said it, these are very short term transient terms,” he said.

The top executive highlighted the company's strong performance across its product range, with 99% of its portfolio gaining market share in the last quarter.

Addressing concerns about competition, particularly from smaller and startup hair oil brands, Gupta expressed confidence in Parachute’s dominance.

“We have continued to gain market share and historically, if we look at the hyperinflation years, we are far more resilient in terms of supply chain than usually smaller brands, local brands. Some of the unbranded get far more impacted,” he noted.

Shares of Marico Ltd. closed 1% lower at Rs 716.05 apiece on the NSE on Tuesday. In comparison, the benchmark Nifty50 settled 0.3% lower at 24,649.55.