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Marico’s consolidated revenues grew by 23% YoY to Rs.3957cr

ICICIdirect Research 05 Aug 2026 DISCLAIMER

News: Marico’s consolidated revenues grew by 23% YoY to Rs.3957cr (largely in-line with our estimates of Rs.3920cr). Standalone India business revenues reported 19% YoY growth driven by 11% volume growth (higher volume growth in 20 quarters). Strong volume growth is largely attributable to 10% volume growth in Parachute. Among Key brands, Parachute recorded 23% revenue growth, VAHO reported 22% revenue growth, Saffola recorded 7% revenue growth and high single digit decline in volumes during the quarter. Foods recorded 43% YoY growth (ex-4700BC and Cosmix – double-digit growth) while Digital and premium portfolio continued to scale strongly ahead with ARR of Rs.1500cr+. International business revenues reported 15% YoY CC growth led by MENA and Vietnam delivering 24% and 27% CC growth respectively. Favourable copra prices (down 35% on YoY basis) coupled with better product mix helped the company deliver 34bps YoY expansion in gross margins to 46.6% in Q1FY27. EBITDA margins expanded by 36bps YoY to 20.7% (higher than our estimates of 18.9%). EBITDA grew by 25% YoY to Rs.819cr (higher than our estimates of Rs.742.6) while Adjusted PAT also grew in similar lines delivering 25% YoY growth to Rs.630cr (higher than our estimates of Rs.556.4cr).

View: Marico’s operating performance and PAT was beat to our estimates. It delivered highest volume growth over the past 20 quarters supported by strong volume growth in Parachute. Gross margins delivered sequential as well as YoY improvement. The management highlighted that copra prices are expected to remain largely range bound while food and edible and liquid paraffin cost are witnessing inflation. Hence, input cost are expected to stay elevated in Q2FY27. For full year, the company expects to deliver high teens EBITDA growth with a possible 140-150bps expansion in margins with continued support from largely stable copra prices ahead and a better portfolio mix. It expects India business to deliver high single digit volume growth and is expected to be supported largely by mid-single digit volume growth in Parachute. International business is expected to grow in mid-teens CC growth. VAHO is expected to deliver high teens growth while new business is expected to continue the strong growth trajectory ahead. The management has retained its double-digit revenue growth guidance with revenues crossing Rs.15000cr in FY27. Over medium it expects to deliver Rs.20000cr revenues with mid-teens EBITDA CAGR

Impact: Positive

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