Marico Q1 Preview: Analysts Bullish As Parachute, Saffola Likely To Drive Solid Performance

FMCG giant Marico Ltd. is set to announce its financial results for the first quarter of the financial year ending March 2026 on Monday. Here's what analysts see in store for the quarter under review.

Brokerages remain largely optimistic on the company's June quarter performance, with a rise in revenue and operating income seen across the board. Sales from the hair oil and edible oil segments are seen catalysing this growth. Margins could improve sequentially, as per analysts.

Overall demand environment in the FMCG space is beginning to show signs of recovery, say brokerages. Most firms have Marico as one of their top picks in the space.

• Revenue seen 21% higher at Rs 3,198 crore.

• Ebitda seen 4% higher at Rs 650.6 crore.

• Margins seen at 20.3%.

• Net profit seen 3% higher at Rs 488 crore.

• Nirmal Bang sees a slight improvement in Marico's metrics in the June quarter.

• Revenue is seen at a 22% advance, led by incremental pricing benefit and high single-digit volume growth in the domestic business. Earnings before interest, taxes, depreciation and amortisation, and profit after tax, are also seen growing 8.2% and 10% year-on-year, respectively.

• The brokerage, however, sees a 270 basis points contraction in Ebitda, following inflation in copra price and easing vegetable oil prices.

• Marico is one of Nuvama's top rated picks in the FMCG space, with the company likely to lead top-line growth in the June quarter.

• The brokerage sees consolidated revenue expanding 21.5% annually, and Ebitda growing 3.1% in the same time frame.

• Parachute oil sales are likely to grow 26% on an annual basis, with volumes up 1%, predicts the brokerage.

• HSBC also sees Marico as one of its top picks in the FMCG sector, citing its initiative to drive growth, despite broad underlying headwinds

• The brokerage believes Marico's double-digit revenue growth trend is likely to continue in the quarter, with strong price-led growth in both Parachute Coconut and Saffola edible oils portfolios.

• Margins could improve sequentially on a low base even as copra prices continue to be elevated, as per the firm.

• Overall, the brokerage sees a 15% rise in revenue annually and a 3% growth in the June quarter.

• Emkay Global also retains Marico as a top pick.

• Marico is likely to see double-digit revenue growth, while margin pressure is likely to aggravate, as per the brokerage.

• Parachute is likely to post 29% growth, with a 33% price growth, as seen by Emkay. The company has rationalised its supplies to the market which, as per the brokerage, would lead to a 4% volume decline in the quarter under review.

• Saffola edible oil is likely to sustain a healthy growth trajectory, with a 25% price growth on the cards. Price cuts are expected to aid a mid-single digit volume growth in the June quarter.

• Healthy growth trends in digital brands is likely to sustain.