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Informist, Friday, Nov. 14, 2025

 

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--Marico Jul-Sept consol net profit INR 4.20 bln 
--Analysts saw Marico Jul-Sept consol net profit at INR 4.21 bln 
--Marico Jul-Sept consol revenue INR 34.82 bln 
--Analysts saw Marico Jul-Sept consol revenue at INR 34.35 bln 
--Marico Jul-Sept consol net profit INR 4.20 bln vs INR 4.23 bln year ago 
--Marico Jul-Sept consol revenue INR 34.82 bln vs INR 26.64 bln year ago 
--Marico Jul-Sept consol advt expense INR 3.45 bln vs INR 2.90 bln year ago 
--Marico Q2 consol cost of materials INR 19.10 bln vs INR 11.49 bln year ago 
--Marico Apr-Sept consol net profit INR 9.24 bln vs INR 8.87 bln year ago 
--Marico Apr-Sept consol revenue INR 67.41 bln vs INR 53.07 bln year ago 
--Marico Jul-Sept consol India revenue INR 26.67 bln vs INR 19.79 bln yr ago 
--Marico Jul-Sept consol intl revenue INR 8.15 bln vs INR 6.85 bln year ago 
--Marico Jul-Sept domestic volume grew 7% on year 
--Marico Jul-Sept international ops grew 20% in constant currency 
--Marico Jul-Sept consol EBITDA INR 5.60 bln vs INR 5.22 bln year ago 
--Marico Jul-Sept consol EBITDA margin 16.1% vs 19.6% year ago 
--Marico: Parachute coconut oil volume fell 3% in Jul-Sept 
--Marico: Parachute coconut oil value grew 59% in Jul-Sept 
--Marico: Adjusting for 'ml-age' cuts, Parachute coconut oil volume flat Q2 
--Marico: Expect gradual rise in margins of foods portfolio over medium term 
--Marico: Saffola edible oil volume flattish in Jul-Sept 
--Marico: Saffola edible oil value grew 19% in Jul-Sept 
--Marico Q2 value-added hair oils increased 16% in value terms

 

By Simran Rede

 

MUMBAI – After posting year-on-year growth for 11 quarters, Marico Ltd.'s consolidated bottom line fell in the September quarter due to a sharp rise in key input costs. The company's total expenses rose at a faster pace than its revenue, offsetting the impact of price hikes in core portfolios.

 

The fast-moving consumer goods major reported a 0.7% on-year fall in its consolidated bottom line to INR 4.20 billion for the quarter, largely in line with analysts' consensus estimate of INR 4.21 billion. The net profit fell largely due to higher copra prices, which were up over 118% on year.

 

The company's consolidated top line for the quarter was INR 34.82 billion, up nearly 31% from the year-ago quarter. The revenue was also largely as per expectations of INR 34.35 billion. Price hikes in Parachute Coconut Oil, the company's major portfolio, drove the revenue growth.

 

The company increased prices of Parachute coconut oil by 59% during the quarter. The sales volume of this portfolio fell just 3% on year after adjusting for reduction in package size. Parachute coconut oil accounts for 36% of the company's India revenue. The decline in volume was also due to higher copra prices, which remained rangebound after correcting 15% from peak levels early in the quarter, the company said. "We expect Parachute to remain steady and reinforce its competitive edge on the back of its formidable brand strength and scaled back-end capabilities," the company said.

 

Similarly, the company raised prices of Saffola edible oil by 19% in Jul-Sept while its sales volume remained flattish. Saffola edible oil accounts for 17% of the company's India revenue. 

 

The value growth in value-added hair oils was 16% in the September quarter. Value-added hair oils account for 16% of the company's India revenue. This portfolio gained 150 basis points in value market share on a moving annual total basis. "We expect the franchise to maintain a healthy growth momentum over the near and medium term, supported by the strategic focus on the mid and premium segments of the portfolio...and the recent GST rate rationalization," the company said.

 

The company's foods portfolio grew 12% on year and its premium personal care segment sustained its accelerated growth trajectory during the quarter, led by the Digital-first portfolio.

 

In its international business, the sales in Bangladesh grew 22% in constant currency terms on the back of the steady core business and scale up of new franchises. The fundamentals and medium-term growth outlook of the business remain intact, the company said. Sales in Vietnam grew 6% in constant currency terms, exhibiting signs of a gradual recovery.

 

West Asia and North Africa delivered 27% constant currency growth during the quarter, with both the Gulf region and Egypt recording strong growth. While South Africa recorded 1% constant currency growth, the company is confident of a recovery in Oct-Mar. The company's new country development segment and exports grew 53% on year.

 

Going ahead, the company expects consumer sentiment to gradually improve on the back of easing inflation, healthy crop outlook, and policy stimulus in the form of cut in goods and services tax rate. Around 30% of Marico's India business benefited from the GST rate rationalisation, it said. "We expect a steady growth trajectory in our core categories, despite input cost headwinds in the near term," the company said. The company aims to maintain double-digit constant currency growth in its international business in the medium term.

 

The company's India business revenue in Jul-Sept rose 35% on year to INR 26.67 billion, aided by price hikes in core portfolios in response to sharp inflation in key input costs. The underlying volume in the India business grew 7% on year. The international business revenue was INR 8.15 billion, up from INR 6.85 billion in the year-ago quarter. This business registered 20% growth in constant currency terms.

 

Marico expects its foods business to grow at over 25% compound annual growth rate in 2026-27 (Apr-Mar). The company expects the share of the foods and premium personal care portfolio in its India business revenue to expand to 25% by FY27. Among Digital-first brands, the earnings before interest, tax, depreciation, and amortisation margin of Beardo is likely to cross double digits in FY26 and that of Plix will grow in single digit, the company said. 

 

Marico reported a 7% on-year rise in its consolidated EBITDA to INR 5.60 billion in the September quarter and its EBITDA margin was 16.1%, down 350 bps on year. The gross margin contracted 810 bps on year on a particularly high base and sharp inflation in key commodities also exerted incremental pressure in this quarter, the company said.

 

During the quarter, the company's total expenses rose nearly 36% on year to INR 29.81 billion. Cost of raw materials consumed, which accounts for 64% of the total expenses, rose over 66% on year to INR 19.10 billion. Its expenses related to purchases of stock-in-trade soared almost 112% on year to INR 5.42 billion. This expense accounts for 18% of the total expenses.

 

For Apr-Sept, the company reported an over 4% on-year rise in its consolidated net profit to INR 9.24 billion. Its revenue rose 27% on year to INR 67.41 billion and the total expenses rose 32% on year to INR 56.40 billion.

 

Following the company's results, the stock reversed early losses and at 1442 IST, it was up over 2% at INR 737.60 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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