Consumer goods major Marico on Monday reported higher-than-expected June quarter profit and revenue growth, even as margins slipped due to elevated copra prices.
The consolidated net profit of the maker of Saffola and Parachute increased nearly 9% year-on-year (YoY) to Rs 504 crore for Q1FY26 driven by double-digit international growth and price-led gains in its domestic portfolio. The profit growth was ahead of Bloomberg consensus estimates of Rs 488 crore for the period.
Domestic and international segments fuel growth
Marico’s consolidated revenue was up 23% YoY to Rs 3,259 crore, beating Bloomberg consensus estimates of Rs 3,198 crore for the period. Earnings before interest tax depreciation and amortisation (Ebitda) were up 4.6% year-on-year to Rs 655 crore and in line with consensus estimates of Rs 651 crore.
However, Q1 Ebitda margins narrowed to 20.1% from 23.7% reported a year earlier, reflecting the impact of elevated raw material prices.
Marico noted that both consolidated and India revenue growth, as well as underlying volume growth in the India business (at 9%), stood at multi-quarter highs. Marico derives 70-75% of its overall revenue from its India business; 25-30% comes from international markets.
Margin pressure persists, but outlook remains upbeat
The India business contributed Rs 2,495 crore in revenue, rising 27% over the same period last year, aided by price hikes in core portfolios. Marico said international business maintained its double-digit constant currency growth momentum, remaining “resilient” amidst high input costs and currency headwinds in select markets. Shares of Marico closed up by 1.79% on the BSE on Monday at Rs 723.15 apiece.
Marico said it expects a gradual uptick in overall demand patterns, aided by easing inflation levels, a favourable monsoon and continued policy support. Amidst this backdrop it expects a steady growth trajectory in its core categories, despite input cost headwinds.
“We also expect operating margin to inch up over the medium term, with leverage benefits as well as premiumisation of the portfolios across both the India and international businesses,” the company said.
The maker of Parachute and Saffola also expects to deliver consistent and competitive growth in the medium term by executing a more focused and channel-specific portfolio and SKU strategy. The company is betting high on foods and premium personal care portfolios. It said that it aims to grow the foods business at more than 25% CAGR over the next few years.