According to Moneycontrol, Marico has achieved its strongest volume growth in seven years with 8% volume growth in FY26, demonstrating robust demand momentum despite challenging market conditions. The company's strategic focus on high-growth segments is yielding positive results, with value-added hair oils (VAHO) emerging as the key growth driver, delivering over 20% volume growth and market share gains supported by premiumisation and innovation. The rising sales mix of these segments from 25 percent currently to 33 percent by FY30 is set to drive sustained earnings for the company. As reported by The Economic Times, Marico's India business saw high single-digit volume growth in Q4 FY26, supported by steady demand for its Parachute and Saffola brands, with the company expecting double-digit operating profit growth in Q4 FY26, driven by volume growth and better cost efficiencies. MD and CEO Saugata Gupta noted that "demand is fairly okay and we are not seeing any stress signs," citing rural recovery, low food inflation and affordability gains as key drivers.
As reported by Moneycontrol, the run rate of the digital-first business has now crossed ₹1,100 crore in FY26, demonstrating the company's successful digital transformation strategy. The company is steadily reducing its dependence on commodity-linked categories, which now account for around 63% of the portfolio, down from 73% in FY20, and are expected to decline further to 50% by FY30 as premium, foods and digital businesses scale up. The foods portfolio crossed ₹1,000 crore in annual revenue, now contributing a mid-single digit share and growing ahead of the core portfolio. According to The Economic Times, Marico is not planning immediate price cuts for Parachute or Value-Added Hair Oils (VAHO) despite falling costs, preferring to wait for more clarity before making price adjustments. The company is also leaning into emerging channels such as quick commerce, which now accounts for roughly 35-40% of its e-commerce business, with Gupta stating "We are using quick commerce as a prototyping channel."
According to Moneycontrol, net profit growth of 9% to ₹1,813 crore lagged behind 26% revenue growth to ₹13,611 crore, signalling margin pressure despite robust demand. The EBITDA margin declined to 17.1% from 19.7% in FY25, a compression of 265 basis points, primarily due to material costs climbing to ₹6,197 crore from ₹4,572 crore, reflecting the impact of copra inflation. However, copra, which accounts for roughly half of input costs, has corrected 30-35%, offsetting pressure from crude-linked inputs. As reported by The Economic Times, the company expects double-digit operating profit growth in Q4 FY26, driven by volume growth and better cost efficiencies, with cost pressures beginning to ease with management indicating a potential margin recovery of around 150 basis points in FY27, supported by softer copra prices, operating leverage and cost discipline. Gupta noted that "We have taken some marginal price increases already. We are prepared for slightly higher input costs," adding that the company had previously absorbed a 100% spike in copra without hurting profitability.
As reported by Moneycontrol, the international business delivered record revenues and 20% constant currency growth, led by Bangladesh and Vietnam, though the Gulf region remained impacted by geopolitical factors. International revenue rose to ₹3,263 crore from ₹2,721 crore, while segment profit increased to ₹813 crore from ₹711 crore, indicating improving profitability. The company highlighted that supply chain constraints and working capital pressures impact smaller players, giving Marico a competitive advantage and aiding market share gains. According to The Economic Times, international operations also maintained strong high-teens growth in constant currency, with the company benefiting from supply chain constraints and working capital pressures impacting smaller players, giving Marico a competitive advantage and aiding market share gains. The declining share of sales from Bangladesh (from 50% of IBD in FY20 to 35% by FY30) will improve the overall health of IBD.
According to Moneycontrol, the company expects to sustain high single-digit volume growth and deliver double-digit revenue growth to cross ₹15,000 crore in FY27, with international business expected to grow at a mid-teen pace. Profitability is expected to improve with the company targeting high-teen EBITDA growth, supported by easing input costs and operating leverage. The board also recommended a final dividend of ₹4 per share. As per MD & CEO Saugata Gupta, "I don't see any significant reason to reduce our outlook or optimism. I don't think FMCG drastically slowed down. What has happened is some incumbents lost opportunities," adding that larger players are now better positioned to regain share. Gupta emphasized that "Large, organised players are in a far better position compared to smaller players. During any crisis, the strong gets stronger and the weak gets weaker," due to superior supply chain control and balance sheets while smaller firms are more exposed to working capital stress. As reported by The Economic Times, Marico, valued at ₹1,01,833 Cr with a TTM P/E of 58.2x, reported an impressive ROE of 37-41%, with analysts maintaining a 'strong buy' consensus, with an average 12-month price target of ₹900, showing confidence in its strategy and margin potential.
Prabhudas Lilladher recommended Accumulate rating on Marico with a target price of ₹875 in its research report dated May 05, 2026. The brokerage increased FY27/28 EPS estimates by 3.8%/3.3% following the company's guidance of sustaining high single-digit volume growth and healthy near-term demand outlook. Prabhudas Lilladher factors in ~340bps margin expansion and a CAGR of 18% in EPS over FY26-28, valuing Marico at 46x Mar28 EPS. The research highlights the company's MRCO in vision 2030 guided for double digit sales and mid-teens EBITDA CAGR led by steady growth in core portfolio, strong double-digit growth in Foods/PC and Digital First portfolio and improving margin trajectory. The brokerage believes Marico has executed the sales transformation strategy led by focusing on foods and acquisitions in the B2C foods/PC portfolio, with the rising share of premium products in portfolio (44% in FY27 and 50% in FY30) supporting sustained growth momentum.
