Marico Q1 Result: Net profit grows 9% to ₹504 crore, margin contracts YoY

Its revenue from operations for Q1 FY26 stood at ₹3,259 crore, increasing 23% year-on-year (YoY) from ₹2,643 crore in the same period of the previous fiscal year.

The company saw an underlying volume growth of 9% in the India business and constant currency growth of 19% in international business during the quarter.

Marico said its consolidated and India revenue growth, as well as underlying volume growth in the India business, stood at multi-quarter highs.

On an operational level, Marico’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 4.6% to ₹655 crore in Q1 FY26 as against ₹626 crore in Q1 FY25.

Meanwhile, the FMCG firm’s EBITDA margin contracted to 20.1% for the reporting quarter in contrast to 23.6% YoY. The contraction was reported as sharp inflation in key commodities continued to exert pressure, in addition to a particularly high base and the pricing-led denominator effect, Marico said.

“Despite these constraints, A&P spending was up 25% YoY, as we maintained investments to adequately strengthen our franchises and accelerate diversification,” it further said.

Following the earnings, shares of Marico were trading at ₹726.50 apiece on the National Stock Exchange, surging 2.15%.

The FMCG firm’s India business revenues stood at ₹2,495 crore, up 27% YoY, aided by price hikes in core portfolios in response to sharp inflation in input costs. The India business continued to post sequential improvement in underlying volume growth, driven by positive trends in the core franchises and accelerated scale-up of new businesses.

Meanwhile, the international business also maintained its robust double-digit constant currency growth momentum. The business has remained resilient amidst high input costs and currency headwinds in select markets, Marico said.

Management commentary

Commenting on the earnings, Saugata Gupta, Managing Director and Chief Executive Officer of Marico, said, “The improving trajectory of our core portfolios, coupled with accelerated growth in foods and the digital-first portfolio, has driven underlying volume growth in the India business closer to double digits. The new businesses continue to scale up ahead of our aspirations, reaffirming their differentiated long-term potential.”

“Despite sharp inflationary headwinds in key commodities in the near term, we expect to maintain strong volume and revenue momentum, along with a resilient earnings performance, over the course of the full year,” he added.

Outlook

The sector has witnessed stable to improving demand trends over the last couple of years. Looking ahead, Marico anticipates a gradual uptick in overall demand patterns in the quarters ahead, aided by a combination of easing inflation levels, a favourable monsoon season, and continued policy support.

“We expect a steady growth trajectory in our core categories, despite input cost headwinds in the near term. We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organised retail and e-commerce channels,” Marico said in a statement.

“We expect to sustain positive volume and revenue growth momentum through the year, while driving resilient profit growth amidst heightened input cost pressures. We expect the impact of these unprecedented margin headwinds to peak in the first half of this year and ease gradually thereafter,” the company added.