Homegrown FMCG major Marico on Tuesday reported a 12% year-on-year (YoY) increase in its consolidated net profit to Rs 447 crore for the December quarter (Q3FY26), in line with street estimates of Rs 450 crore for the period.
Consolidated revenue grew 26.6% annually to Rs 3,537 crore in Q3, led by an underlying volume growth of 8% in the Indian market and 21% constant currency growth of 21% in international markets. Revenue was ahead of Bloomberg consensus estimates of Rs 3,499 crore for the quarter.
Marico, best-known for Parachute and Saffola, derives 70-75% of its revenue from India; rest comes from international markets.
Company statement
“We are optimistic of a gradual uptick in consumption trends across categories in the quarters ahead, supported by favourable macroeconomic indicators and the prospects of further stimulus in the upcoming Union Budget,” the company said in an earnings call on Tuesday.
At an operational level, Marico’s earnings before interest, tax, depreciation and amortisation (Ebitda) grew 11.1% annually to Rs 592 crore, but Ebitda margins declined 240 bps year-on-year to 16.7% from 19.1% last year amid an increase in advertising spends (up 15% YoY) and input cost pressures.
Marico’s revenue from the domestic market advanced by 27.6% to Rs 2,681 crore in the December quarter. The firm said this was on the back of a sequential improvement in underlying volume growth supplemented by pricing interventions across core portfolios over the last 12 months in response to inflation in key input costs.
Its revenue from international markets was also up 23.52% in Q3 to Rs 856 crore.
Its traction in traditional trade improved in the December quarter. Moreover, e-commerce and quick commerce also continued to lead growth.
Offtake growth
Offtake growth also remained strong, with more than 95% of the business gaining or sustaining market share and over 80% of the business gaining or sustaining penetration, the firm said.
Offtake growth refers to an increase in the volume of goods sold from a producer’s inventory, signalling rising consumer demand or increased market uptake. It often indicates strengthening market demand for a product and improved sales performance.
“Looking ahead, we expect to sustain the healthy volume growth momentum, with profitability strengthening progressively as input cost pressures moderate,” Saugata Gupta, MD & CEO, Marico, said.