Marico Ltd has kicked off FY26 on a strong note with robust sales growth and a promising outlook, even though profit margins came under pressure due to higher input costs. Let’s analyze what went well, what didn’t, and what investors need to be aware of.
Q1 FY26 Performance at a Glance (Consolidated)
| Metric | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Sales | 3,259 | 2,730 | 2,643 | 23% | 19% |
| Gross Margin | 46.9% | 48.6% | 52.3% | -533 bps | -166 bps |
| Adjusted EBITDA | 655 | 458 | 626 | 5% | 43% |
| EBITDA Margin | 20.1% | 16.8% | 23.7% | -359 bps | 332 bps |
| Net Profit | 504 | 343 | 464 | 9% | 47% |
Key Insight: Despite margin pressure, both revenue and profit saw healthy growth – driven by strong sales across portfolios and a 47% sequential jump in net profit.
Segment-Wise Performance
Sales Breakdown
| Segment | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth | QoQ Growth |
|---|---|---|---|---|---|
| India | 2,495 | 2,068 | 1,962 | 27.2% | 20.6% |
| International | 764 | 662 | 681 | 12.2% | 15.4% |
EBIT Performance
| Segment | EBIT (₹ Cr) | EBIT Margin | YoY Change | QoQ Change |
|---|---|---|---|---|
| India | 469 | 18.8% | +5.6% | +45.7% |
| International | 213 | 27.9% | +8.1% | +34% |
Businesses in India saw robust double-digit growth, while global markets-particularly Bangladesh-remain resilient.
Standalone Performance
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Sales | 2,281 | 1,870 | 1,886 | 21% | 22% |
| Gross Margin | 39.1% | 41.1% | 46.4% | -730 bps | -192 bps |
| EBITDA | 449 | 312 | 428 | 5% | 44% |
| EBITDA Margin | 19.7% | 16.7% | 22.7% | -301 bps | 300 bps |
| Net Profit | 777 | 325 | 311 | 150% | 139% |
Massive 150% YoY net profit jump was the standout here.
Key Business Drivers in Q1 FY26
- Parachute Hair Oil:
- Witnessed price hikes of up to 60% YoY due to high copra prices.
- Strong pricing power is indicated by a little fall in volume.
- Saffola Edible Oils:
- Volume boosted by recent import duty cuts.
- Strong value positioning to drive further growth.
- Digital-First Brands:
- Beardo, Just Herbs, and Plix saw record revenue, with exit ARR hitting ₹850 Cr.
- Fast growth thanks to D2C strength and digital marketing.
- International Business:
- Bangladesh’s demand is steady, making it a growth driver.
Future Growth Projections
| Metric | FY24 | FY25E | FY26E | FY27E |
|---|---|---|---|---|
| Sales (₹ Cr) | 9,653 | 10,831 | 12,997 | 14,947 |
| EBITDA (₹ Cr) | 2,026 | 2,139 | 2,534 | 2,989 |
| EBITDA Margin (%) | 21.0% | 19.7% | 19.5% | 20.0% |
| Net Profit (₹ Cr) | 1,481 | 1,629 | 1,885 | 2,242 |
| EPS (₹) | 11.5 | 12.6 | 14.6 | 17.4 |
| P/E (x) | 63 | 57 | 49 | 42 |
Important Trends to Keep an Eye on
Quarterly Volume Growth Forecast
| Quarter | Growth (%) |
|---|---|
| Q2 FY25 | 5% |
| Q3 FY25 | 6% |
| Q4 FY25 | 7% |
| Q1 FY26 | 9% |
Marico expects consistent volume-led growth every quarter.
Share of Foods & Premium Personal Care (Digital-First)
| Year | Contribution (%) |
|---|---|
| FY23 | ~15% |
| FY25E | ~22% |
| FY27E | 25%+ |
This segment is growing rapidly, and is expected to be a major profit driver.
Strategy: Rural Push + Premium Play
- Urban markets are recovering steadily.
- Rural demand to get a push through Project SETU and wider distribution.
- Focus on margin-rich categories like premium personal care will aid long-term profitability.
Should You Invest?
At 42x FY27E EPS, Marico is trading at reasonable valuations considering:
- Strong volume growth
- Premiumization strategy
- Expanding D2C footprint
- International resilience
Analyst View: Long-term investors can consider accumulating the stock on dips.
Final Verdict
With a distinct emphasis on digital, premium, and varied revenue streams, Marico is expanding beyond its core. The long-term growth story is still compelling, even though margin pressure may continue in the near future.
Stay tuned for the next quarters. This stock could be a key portfolio compounder!
