Marico Ltd is on brokerages' radar after it posted a steady set of consolidated earnings for the March quarter, with profit growth supported by strong volume expansion across India and international markets, even as margins came in below expectations. Volume growth for the domestic business stood at 9% in Q4, while full‑year volume growth for FY26 came in at 8% — the highest in the last seven years.
The consumer goods major reported net profit of Rs 391 crore for Q4, up 14% year‑on‑year from Rs 343 crore. The figure was broadly in line with Street estimates of Rs 392 crore. Consolidated revenue rose 22.1% year‑on‑year to Rs 3,333 crore, marginally exceeding analyst expectations of Rs 3,325 crore, reflecting sustained demand momentum across key portfolios. Operating performance, however, was softer than anticipated. EBITDA stood at Rs 521 crore, compared with estimates of Rs 533 crore, while EBITDA margin declined to 15.6% from 16.8% a year earlier, undershooting expectations of 16.1%.
Brokerages broadly maintained a bullish sentiment, Jefferies and Citi maintaining their Buy calls, but hiking their target prices to Rs 960, and Rs 940 respectively. Morgan Stanley also remains constructive on the FMCG player, with an Overweight rating, and a target price of 934.
Jefferies on Marico
- Jefferies maintains a Buy rating and hikes the target price to Rs 960 from Rs 900.
- Marico continues to deliver consistent growth.
- Management remains confident on the outlook.
- The company expects high-teens EBITDA growth in FY27 and mid-teens growth through FY30.
- Management believes internal execution remains strong, with external factors the key monitorable.
- Marico remains Jefferies' top pick.
Morgan Stanley on Marico
- Morgan Stanley maintains an Overweight rating with a target price of Rs 934.
- Q4 trends remained healthy with positive FY27 commentary.
- Management now targets high-teens EBITDA growth for FY27 versus mid-teens earlier.
- Commodity inflation remains manageable for Marico at present.
Citi on Marico
- Citi maintains a Buy rating and hikes the target price to Rs 940 from Rs 900.
- Q4 was strong and growth visibility continues to improve.
- The brokerage expects medium-term momentum to remain robust.
- Falling copra prices are expected to offset inflation in crude-linked inputs.
- Citi estimates 11% revenue CAGR and 16% EPS CAGR over FY26–29.
ALSO READ: Marico Q4 Results: FY26 Volume Growth Highest In Seven Years; Final Dividend Declared
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