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Marico reported double-digit India volume growth for the second consecutive quarter

ICICIdirect Research 06 Oct 2026 DISCLAIMER

News: Marico reported double-digit India volume growth for the second consecutive quarter, with Parachute reporting early-teens volume growth, while Saffola oils reported mid-single-digit revenue growth, largely price-led, with volumes declining due to rationalisation of select variants. VAHO grew in twenties, while Food and Premium Personal Care continued strong growth in-line with targets. International business reported mid-teens constant-currency growth, led by Vietnam, Middle East and South Africa, while Bangladesh reported sequential improvement despite inflationary headwinds. The company expects consolidated revenue growth to be in double digits and guided for continued ad spends to step up brand investments. Copra prices remained ~35% below peak levels, while crude linked derivatives and vegetable oils witnessed sustained inflation; stable copra prices are expected to aid gross profit margins and support mid-twenties operating profit growth. Overall, we expect Marico’s revenues to grow by 18%, gross margin expansion of 285bps YoY to 45.5% amidst lower copra prices on YoY basis and improving portfolio mix. We expect EBITDA margin expansion of 126bps YoY to 17.3% in Q2FY7. Further, Marico also agreed to acquire a further ~38.2% stake in Satiya Nutraceuticals, with 24.1% stake to be acquired for Rs.1,012.3cr and the remaining ~14% in July 2027; its stake will increase to 84.1%, with total consideration of Rs.1,392.1cr.

View: Marico’s double-digit consolidated revenue growth along with mid-twenties operating profit growth is in-line with the expectations. Sustained double-digit volume growth in Parachute can be attributed to increasing price gap compared to VAHO/premium oils. As copra prices have corrected ~35% from its highs, the company is continuing to pass on the benefits to the consumers through price cuts (on sequential basis) in Parachute, thereby leading to increasing gap in pricing between Parachute oil and VAHO/premium oils. Hence, Parachute oil is witnessing volume uptick. Key monitorable ahead will be management commentary on impact of inflation on consumer demand due to weak set of monsoons across the country and inflation impact on key input cost such as crude linked derivatives and vegetable oils.

Impact: Neutral

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