Marico Q1 Result Review: Industry Leading Growth, Highest Among FMCG Peers: Brokerages

Marico Ltd.'s revenue rose 23.3% on Monday as the company reported its first quarter earnings for the financial year 2026. Brokerage across the board have turned largely bullish across the board after the company posted in line results. Jefferies and Goldman Sachs have both increased their target price on the stock, however Morgan Stanley appears to be cautious give the company noted a margin miss in Q1.

Marico's revenue rose to Rs 3,259 compared to previous quarter year-on-year. In the previous quarter the company reported 8% profit which was in line with analysts' estimates and the its bottom line came in at Rs 343 crore during the January-March period of fiscal 2025. This was slightly above the consensus estimate of Rs 336.7 crore by analysts polled by Bloomberg. In the year-ago period, the company posted a net profit of Rs 318 crore in Q4FY25.

• Maintain Buy; Hike target price to Rs 850 from Rs 800

• Industry Leading Volume Growth

• Impact of high-cost inflation in inputs led to sharp margin contraction

• Management positive on demand outlook and highlighted preference for growth over margins

• See no risk to volumes contracting

• Management confidence also appeared high on VAHO

• Digital & foods portfolio scaled up well and this should continue

• Maintain Equal-weight with target price of Rs 674

• Q1: Margin miss

• Short-term margin hurdles likely but growth strategy intact

• Parachute to see full effect of price increase in Q2

• H2 pricing growth to come down from peak of Q2

• Maintain Buy and hike target price to Rs 800 from Rs 780

• Strong broad based volume growth acceleration to 9%, highest among FMCG peers

• VAHO turnaround a key positive

• New businesses surpassed growth metric expectations, company set aggressive targets for FY28 growth and profitability

• Unprecedented inflation in copra pushes out margin recovery to FY27