Marico Ltd on Tuesday reported its strongest volume growth in seven years, with volumes rising 8 per cent in FY26, even as net profit grew a slower 9 per cent to ₹1,813 crore from ₹1,658 crore, lagging 26 per cent revenue growth to ₹13,611 crore from ₹10,831 crore, signalling margin pressure despite robust demand.

Net profit growth also trailed a sharp rise in input costs, with the cost of materials consumed climbing to ₹6,197 crore from ₹4,572 crore, reflecting the impact of copra inflation.

For the March quarter, revenue rose 22 per cent to ₹3,333 crore, while net profit increased 14 per cent to ₹391 crore, indicating steady demand momentum despite cost pressures. Topline growth was the highest in 14 years, while the international business delivered a record performance, with revenue at an all-time high and 20 per cent constant currency growth.

In value terms, India’s revenue rose to ₹10,348 crore from ₹8,110 crore, while international revenue increased to ₹3,263 crore from ₹2,721 crore, underscoring broad-based growth across markets.

The India business reported 28 per cent revenue growth, supported by strong demand, with over 95 per cent of the portfolio gaining or sustaining market share, and more than 90 per cent gaining penetration.

“FY26 reflects our ability to deliver strong volume and revenue growth, while advancing our diversification agenda, despite a challenging input cost environment,” said Saugata Gupta, MD & CEO, Marico.

The divergence between revenue and profit growth reflects sharp input cost inflation, particularly in copra, along with higher brand investments. The EBITDA margin declined to 17.1 per cent from 19.7 per cent in FY25, a compression of 265 basis points, even as advertising and promotion spends rose 15 per cent to ₹1,300 crore. Profit before tax increased to ₹2,277 crore from ₹2,116 crore, indicating operating resilience despite margin compression.

Core vs premium: divergence sharpens

Performance remained uneven across categories, highlighting a structural shift in the portfolio. The Parachute coconut oil franchise saw muted volume growth, impacted by elevated copra prices, though the company has taken selective price cuts of around 10% in non-price point packs following the recent correction in copra costs.

“We anticipate a gradual pick-up in volumes from the next quarter on the back of easing consumer prices and strong brand equity,” the company said.

In contrast, value-added hair oils (VAHO) emerged as the key growth driver, delivering over 20 per cent volume growth and market share gains, supported by premiumisation and innovation. “We remain confident of sustaining this double-digit growth trajectory,” the company added.

Saffola edible oils delivered steady mid-single digit growth, while the foods portfolio crossed ₹1,000 crore in annual revenue, now contributing a mid-single digit share and growing ahead of the core portfolio.

The company also expanded into adjacent categories through acquisitions such as Cosmix and 4700BC, while increasing stakes in Plix and True Elements, strengthening its presence in digital-first wellness and nutrition.

Structural shift underway

Marico is steadily reducing its dependence on commodity-linked categories. Such categories now account for around 63 per cent of the portfolio, down from 73 per cent in FY20, and are expected to decline further to 50 per cent by FY30, as premium, foods and digital businesses scale up.

“This performance underscores the strength of our core categories and the profitable scale-up of premium and digital businesses,” Gupta said.

Margins under pressure, recovery underway

Margins were impacted by 40 per cent growth in material costs, largely driven by copra inflation, alongside higher investments in brand building and new channels. However, cost pressures are beginning to ease, with management indicating a potential margin recovery of around 150 basis points in FY27, supported by softer copra prices, operating leverage and cost discipline.

“Copra prices have corrected ~35 per cent from peak levels… we will leverage pricing power and cost management initiatives,” the company said.

The company added that investments in AI, analytics and supply chain capabilities are improving efficiency and execution, supporting margin recovery. It also highlighted that supply chain constraints and working capital pressures impact smaller players, giving Marico a competitive advantage and aiding market share gains.

Operating cash flow improved to over ₹2,000 crore, providing headroom for investments and shareholder returns.

International steady, but uneven

The international business delivered record revenues and 20 per cent constant currency growth, led by Bangladesh and Vietnam, though the Gulf region remained impacted by geopolitical factors.

International revenue rose to ₹3,263 crore, while segment profit increased to ₹813 crore from ₹711 crore, indicating improving profitability.

Outlook: growth strong, margins key

Marico said it expects to sustain high single-digit volume growth and deliver double-digit revenue growth to cross ₹15,000 crore in FY27, with international business expected to grow at a mid-teen pace.

Profitability is expected to improve, with the company targeting high-teen EBITDA growth, supported by easing input costs and operating leverage. “We remain committed to achieving top quartile outcomes in FY27, while advancing towards our vision of surpassing ₹20,000 crore in revenue by FY30,” Gupta said. The board also recommended a final dividend of ₹4 per share.

Published on May 5, 2026