More Stories

Informist, Wednesday, Apr. 22, 2026

By Simran Rede

MUMBAI – A sharp correction in copra prices and a steady recovery in sales volumes are likely to help Marico Ltd. post its highest on-year net profit growth in six quarters in Jan-Mar. While revenue is seen growing at its slowest pace in four quarters on a year-on-year basis, it is still likely to be the highest growth for the March quarter since 2021. 

Marico's consolidated net profit for the March quarter is expected to rise nearly 13% on year but is seen falling over 13% on quarter to INR 3.87 billion, according to the average of estimates from 12 brokerages. The highest net profit estimate is INR 4.09 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 3.78 billion from YES Securities (India) Ltd.

The company is expected to report a nearly 22% on-year rise in consolidated revenue to INR 33.18 billion, according to the average of 12 estimates. Revenue is expected to fall over 6% from the trailing quarter. The highest revenue estimate is INR 33.89 billion from Nuvama Institutional Securities Ltd. and the lowest is INR 32.13 billion from Kotak Securities Ltd. 

Benign prices of copra and volume-led growth in the domestic business are expected to boost Marico's earnings. Prices of copra, a key raw material for the company, have eased around 35% from peak levels touched recently. 

The fast-moving consumer goods giant's gross margin for the reporting quarter is expected to contract 120-447 basis points on year, according to five brokerages. Gross margin is expected to improve sequentially, mainly due to moderation in copra prices, although it may fall on year as these prices are still higher compared to the year-ago quarter.

Marico has made marginal price cuts in products as input costs have eased, analysts said. The company continued to reduce the size of packs as a method to overcome the cost of elevated raw material prices. This could have impacted margins.

The company's earnings before interest, tax, depreciation, and amortisation are expected to rise almost 16% on year but fall more than 10% on quarter to INR 5.30 billion, according to an average of estimates from 11 brokerages. EBITDA margin is seen contracting 40-133 bps on year to 15.5-16.4%, primarily due to a decline in gross margins, brokerages said.

Volume of Marico's India business likely saw a growth of 7-9% in the reporting quarter, aided by strong growth across all portfolios. The Parachute hair oil category is likely to record a 44% on-year growth in sales volume in the reporting quarter along with a 28% value growth, according to two brokerages.

However, brokerages are divided on the outlook for the hair oil category's volume trends. While JM Financial expects Parachute oil category's volume to rise 1% on year in the March quarter, Nuvama Institutional Securities sees it falling 1% and Kotak Securities projects the growth to be flat. "We expect the brand to deliver a gradual pickup in volume growth over the course of FY27 (financial year ending March 2027)," the company said in its quarterly business update.

The Saffola brand is expected to recover from the subdued growth seen in the December quarter, on the back of improving volumes. Its sales are likely to grow 8% on year in the March quarter, with its volume and value expected to grow 2-5% and 2-6% on year, respectively. The value-added hair oils portfolio is likely to grow 21-22% on year and the company's Foods business is projected to report over 18-20% growth each in sales volume and value for the reporting quarter.

Marico's international business is expected to report 18-22% on-year growth in constant currency terms, largely similar to the 21% growth recorded in the December quarter and higher than the 11% on-year growth in the year-ago quarter. In its quarterly business update, the company said that its business in West Asia was impacted by the ongoing geopolitical headwinds in March. West Asia is a key international market for Marico.

"We remain hopeful of a gradual improvement in consumption trends in the quarters ahead, while the macroeconomic impact of the evolving geopolitical situation in the Middle East is a key monitorable," the company said in its quarterly business update. The company said it was confident about delivering healthy volume-led revenue growth in 2026-27 (Apr-Mar).

The company will announce its results for the March quarter on May 5. On Thursday, shares of the company ended 0.8% higher at INR 778.90 on the National Stock Exchange. The stock price has risen nearly 5% since the company detailed its December quarter earnings. In the previous quarter, the company had reported a consolidated net profit of INR 4.47 billion, up 12% on year. Its sales had risen almost 27% on year to INR 35.37 billion.

Of the 17 brokerage reports on the stock available with Informist, 16 have a 'buy' or equivalent recommendation on the stock with an average target price of INR 805, implying a nearly 4% upside to the stock's spot price. Only Nirmal Bang Institutional Equities has a 'hold' rating on the stock with a target price of INR 770.

Following are the Jan-Mar earnings estimates, in INR billion, for Marico from 12 brokerages, in descending order of net profit estimates:

End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.