Marico shares jump 4%: Firm says underlying volume growth in India business hits multi-quarter high in Q1; top highlights

The company said that the FMCG sector exhibited consistent demand patterns during the June 2025 quarter, marked by improving trends in rural markets and steady urban sentiment. The company said it expects gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season, and policy stimulus.

Underlying Volume Growth

Marico said its underlying volume growth in the India business continued to improve sequentially to reach a multi-quarter high, driven by positive trends in the core franchises and continuous scale-up of new businesses. Parachute witnessed a marginal dip in volumes in the unprecedented hyperinflationary input cost and pricing conditions.

Underlying volume growth (UVG) refers to the increase in the actual number of units sold (e.g., packs, kilograms, liters), excluding the impact of certain factors such as price changes, currency fluctuations, and acquisitions/divestitures. It is a key indicator of real demand and consumer off-take.

Saffola Oils posted a healthy performance with revenue growth in the high twenties, backed by mid-single-digit volume growth. The brand has proactively passed on the benefit of the recent import duty reduction on vegetable oils to consumers, the company said.

Value-added hair oils grew in low double digits, witnessing a considerable step-up in the pace of recovery on the back of sustained traction in the mid and premium segments of the portfolio. "We expect the franchise to maintain a healthy growth momentum through the year, supported by a strategic pivot in investments from trade-led activations to brand-building initiatives, as well as enhanced direct reach driven by Project SETU," Marico said in its Q1 business update.

Foods and Premium Personal Care (including digital-first brands) maintained the accelerated scale-up to propel diversification while holding profitability parameters steady.

International business

Marico said its international business delivered high-teen constant currency growth, driven by broad-based growth across most markets. Bangladesh continued to exhibit visible resilience with high-teen constant currency growth, it added.

Consolidated revenue growth YoY

The FMCG major said its consolidated revenue growth on a year-on-year (YoY) basis stood in the low twenties, marking a strong start towards delivering double-digit growth on a full-year basis, underpinned by the strengthening volume trajectory.

Raw materials prices and inflation

Marico said among key inputs, copra prices continued to witness sequential inflation, which was heightened by unseasonal rainfall patterns. Vegetable oil prices eased following the cut in import duty, while crude oil derivatives remained rangebound. Owing to the above, gross margin is expected to be under incremental pressure on a particularly high base and partly due to the pricing-led high denominator effect.

"We expect gross margin pressures to ease from the second half of this fiscal year. Despite the input cost push, we maintained brand-building investments in line with our strategic intent to strengthen the long-term equity of our franchises and accelerate portfolio diversification. In the given context, we expect modest operating profit growth on a year-on-year basis," it said.

Marico added that it maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale-up of new engines of growth.