Shares of Marico climbed over 2.5% intraday after the FMCG major's Q4 business update pointed to stable demand trends and a strong volume-led recovery, alongside easing input cost pressures. The company reported low-twenties consolidated revenue growth for Q4, supported by both domestic and international businesses. At the core, the India business remained resilient, delivering high single-digit volume growth, indicating steady underlying consumption despite a mixed macro environment.
Marico also guided for double-digit operating profit growth in the quarter, aided by improving gross margins. A key driver here has been copra — its primary raw material — which has corrected about 35% from peak levels. The company expects copra prices to remain range-bound in the near term, offering continued margin support.
Mixed Trends, Gradual Recovery Ahead
Within the portfolio, Parachute coconut oil posted low single-digit volume growth, reflecting lingering rural softness and pricing adjustments. However, management expects a gradual pickup in volumes through FY27, as affordability improves and demand normalises.
On the other hand, Saffola edible oils delivered high single-digit revenue growth, driven by stable demand and portfolio expansion. The segment continues to benefit from premiumisation and brand strength in the healthy oils category.
Marico remains confident of healthy, volume-led revenue growth in FY27, signalling a shift away from price-led gains seen in previous cycles. The improving demand environment, coupled with easing input costs, is expected to support both growth and profitability.
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Macquarie has highlighted consumer companies with strong pricing power and premium positioning as its preferred picks, noting that such businesses are better placed to cushion the impact of rising input costs. Among its top picks, Macquarie has an “Outperform” rating on Marico, with a target price of Rs 850, implying an upside potential of 13%.
Marico reported a solid performance in the third quarter of FY26. Consolidated net profit rose 12% year‑on‑year to Rs 447 crore, compared with Rs 399 crore in the corresponding period last year. Revenue increased 26.6% to Rs 3,537 crore, up from Rs 2,794 crore a year earlier, reflecting strong momentum across key categories.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 11.1% year‑on‑year to Rs 592 crore, compared with Rs 533 crore in Q3FY25. However, EBITDA margin moderated to 16.7%, down from 19.1% in the year‑ago quarter, amid elevated cost pressures.
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