Marico Q3 business update: Firm expects steady demand, revenue growth in high twenties

The company’s consolidated revenue growth on a year-on-year basis stood in the high twenties, poised to achieve our full-year aspiration, the firm said.

“The sector witnessed steady demand trends during the quarter. We remain optimistic about a gradual improvement in consumption in the quarters ahead, supported by easing inflation, lower GST rates driving affordability, MSP hikes, and a healthy crop sowing season,” Marico said in a regulatory filing.

During the quarter, underlying volume growth in the India business remained in high single digits, while marking a slight improvement on a sequential basis.

The international business maintained its robust momentum with constant currency growth in the early twenties, as Bangladesh led from the front, while Vietnam and South Africa bounced back to double-digit growth on the back of targeted initiatives.

Owing to the copra price correction and elevated vegetable oil prices, Marico expects an uptick in gross margin on a sequential basis, after bottoming out in the preceding quarter. The firm also anticipates further gross margin improvement in the coming quarters, driven by the lagged pass-through of lower copra costs.

“We sustained brand-building investments to continually strengthen the long-term equity of our franchises and drive accelerated portfolio diversification. In the given context, we expect operating profit growth to touch double digits on a year-on-year basis,” the firm said.

Segment-wise updates

• Parachute continued to demonstrate stellar resilience amid elevated input costs and pricing conditions. The brand recorded a marginal volume decline but was in positive territory after normalising for ml-age reductions in lieu of price increases.

• Saffola Oils had a muted quarter, while prior pricing actions were anniversarised in this quarter. Value Added Hair Oils grew in the twenties, reinforcing sustained traction in the franchise.

“We expect to maintain the double-digit growth momentum in this franchise over the near and medium term, supported by the strategic focus in the mid and premium segments of the portfolio, enhanced direct reach driven by Project SETU and the recent GST rate rationalisation,” Marico said.

• Foods had a benign quarter and is expected to revert to accelerated growth over the next 2 quarters, while Premium Personal Care (incl. digital-first brands) continued to scale ahead of aspirations.

Marico share price

On Friday, shares of Marico closed at ₹758 apiece on the National Stock Exchange, declining 0.32%.

The company has a total market capitalisation of ₹98,395.04 crore, according to data on the NSE.

Marico Q2 earnings

For the quarter ended September 30, 2025, Marico had reported a marginal dip of 1% in its consolidated net profit at ₹420 crore. The company’s net profit for the September quarter of financial year 2024-25 was at ₹423 crore.

Its revenue from operations for Q2 FY26 stood at ₹3,482 crore, increasing 31% year-on-year (YoY) from ₹2,664 crore in the same period of the previous fiscal year.

On an operational level, Marico’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 7.3% to ₹560 crore in Q2 FY26 as against ₹522 crore in Q2 FY25.

The FMCG firm’s EBITDA margin also contracted to 16.08% for the reporting quarter in contrast to 19.59% YoY.  Marico said the gross margin contracted by ~810 bps YoY, on a particularly high base, as sharp inflation in key commodities also exerted incremental pressure in this quarter.