Executive Summary
Marico Limited delivered a robust set of results for the third quarter of fiscal 2026 (Q3 FY26), underpinned by strong volume-led growth across its domestic portfolio and resilient international performance. Consolidated revenue from operations increased 27% year-on-year, reflecting broad-based demand and pricing actions in response to inflationary inputs. Earnings growth remained healthy, with EBITDA and PAT rising on improved operational execution and copra cost moderation.
While gross margins remain under pressure compared to last year, sequential improvement was noted. Management also highlighted strategic investments to expand into new categories, signalling growth beyond traditional personal care and edible oil portfolios.
Financial Highlights
Marico Ltd reported revenue from operations of ₹3,537 crore in Q3 FY26, up 27% year-on-year, supported by pricing actions and steady volume growth across its domestic and international businesses.
EBITDA rose 11% from a year earlier, even as margins remained under pressure due to higher input costs. The EBITDA margin stood at 16.7%, down 234 basis points year-on-year, though the company noted sequential improvement aided by easing copra prices.
Profit after tax increased 12% year-on-year to ₹447 crore, reflecting operating resilience despite continued investment in advertising and brand building.
Business Segment Breakdown
- India Business: Reported strong underlying volume growth of 8% with revenues of ₹2,681 crore, up 28% YoY, driven by pricing and better trade traction.
- International Business: Maintained momentum with 21% constant currency growth, with markets like Vietnam and South Africa rebounding smartly.
- Portfolio Highlights (India):
- Parachute Rigids: Demonstrated resilience with underlying volumes growing by 2% after age-related adjustments; revenue up 50%.
- Value-Added Hair Oils (VAHO): Delivered strong value growth of 29% and expanded market share.
- Saffola Edible Oils: Saw flattish growth amid elevated pricing environments.
- Foods & Premium Personal Care: Foods grew modestly at 5% YoY, while premium personal care including digital-first brands sustained accelerated growth.
Management Commentary
The sector has witnessed steady demand trends throughout the year. 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. — Management Outlook
Strategic Moves & Outlook
- Strategic Investment in 4700BC Brand: Marico announced a definitive agreement to make a strategic investment in Zea Maize Private Limited, owner of premium snack brand “4700BC” — aligning with diversification goals.
- Margin Trends: Gross margin showed sequential improvement — attributed to easing copra prices, even though it remained lower YoY, and the company sustained brand investments with higher A&P spends.
- Growth Focus: Press release discusses plans to continue scaling foods at a high CAGR and grow the digital-first portfolio substantially by FY27.