According to reports from The Economic Times, Marico delivered robust financial results for FY26, with revenue reaching ₹13,611 crore, up 26% year-on-year on a consolidated basis - marking the company's highest annual growth in 14 years. The company's profit after tax stood at ₹1,762 crore, growing 11% on-year, while EBITDA rose 9% to ₹2,328 crore. In the quarter ended March, Marico posted revenue of ₹3,333 crore, up 22% and net profit of ₹391 crore, growing 14%. EBITDA margin contracted 114 basis points to 15.6% from 16.8% a year ago due to higher raw material costs, though margins improved sequentially as copra prices started easing. The divergence between robust revenue and volume expansion and slower net profit growth stems directly from sharp increases in material costs, with cost of materials consumed surging to ₹6,197 crore from ₹4,572 crore.
As reported by The Economic Times, Marico MD and CEO Saugata Gupta emphasized that large, organised players are in a far better position compared to smaller players during market volatility. Gupta noted that during crises, 'the strong gets stronger and the weak gets weaker' due to superior supply chain control and balance sheets. The company's FY26 volumes jumped 8% to a 7-year high, with management anticipating gradual volume pick-up from the next quarter, buoyed by easing consumer prices and strong brand equity. The company expects to maintain high single-digit volume growth in India in FY27 and mid-teen constant currency growth in international markets, while targeting revenue of over ₹15,000 crore next year and surpassing ₹20,000 crore by FY30. Gupta stated there is 'no significant reason to reduce our outlook or optimism' and doesn't think FMCG has drastically slowed down. More than 95% of the portfolio either gained or sustained market share, while over 90% maintained or expanded penetration, highlighting the strength of core categories and successful diversification.
According to The Economic Times, Marico's international business delivered strong performance with 19% constant currency growth during the quarter and 25% growth in rupee terms. Bangladesh delivered 35% constant currency growth, while Vietnam grew 18%. However, the Middle East and North Africa region declined 7% amid geopolitical disruptions in the Gulf. The company's foods portfolio grew 16% during the quarter and crossed the ₹1,000 crore annual revenue milestone in FY26. Among key categories, Parachute coconut oil posted 29% revenue growth, while value-added hair oils grew 26%. Strategic acquisitions and stake increases in digital-first wellness brands like Cosmix, 4700BC, Plix, and True Elements signal a move away from commodity-linked businesses, with these legacy categories now representing 63% of the portfolio, down from 73% in FY20, targeting 50% by FY30. The digital portfolio exited the year at an annualised revenue run rate of over ₹1,100 crore, demonstrating successful scale-up of premium and digital businesses.
According to The Economic Times, copra, which accounts for roughly half of input costs, has corrected 30-35%, offsetting pressure from crude-linked inputs. Gupta indicated that Marico had previously absorbed a 100% spike in copra without hurting profitability. The company has taken some marginal price increases and is prepared for slightly higher input costs. Management projects a potential margin recovery of approximately 150 basis points in FY27, driven by softer copra prices, operating leverage, and cost discipline. Investments in AI and supply chain capabilities are also expected to enhance efficiency. The company has initiated selective price cuts of around 10% in non-point-of-price packs for Parachute coconut oil, while value-added hair oils emerged as a key driver with over 20% volume growth and market share gains. Gross margin declined around 360 basis points year-on-year, though sequential improvement was seen due to easing copra prices.
As reported by The Economic Times, Gupta highlighted that many digital-native brands struggle to scale beyond ₹500 crore due to weak distribution in general trade, where Marico retains a competitive edge. The company is leaning into emerging channels such as quick commerce, which now accounts for roughly 35-40% of its e-commerce business. Gupta described quick commerce as a 'prototyping channel' for the company. The company also declared a final dividend of ₹4 per share for the quarter. Marico has initiated selective price cuts of around 10% in non-point-of-price packs for Parachute coconut oil, while the foods portfolio showed steady mid-single-digit growth with Saffola edible oils maintaining steady performance. E-commerce, including quick commerce, remained the fastest-growing channel, though traditional trade also showed improvement after sustained investments over the past two years.
