Marico Share Price Rose ~3%: Posted Volume Growth in India Business During Q1FY26

On July 4, 2025, Marico share price soared ~3%, reaching a day high of ₹745.00 at 12:30 PM after opening at ₹730.05 on BSE. The gain in Marico share price follows the release of the Q1FY26 business update. In Q1FY26, the FMCG sector experienced consistent demand, underpinned by strengthening rural sentiment and stable urban consumption. The outlook remains optimistic, with anticipated tailwinds such as softening inflation, favourable monsoons, and government-led policy support expected to bolster performance in the upcoming quarters.

India Business: Strong Sequential Volume Growth

Marico’s India operations reported sequential improvement in underlying volume growth, reaching a multi-quarter high. This was led by robust performance across core product lines and continued traction in emerging business segments.

• Parachute faced a slight volume decline amidst a volatile input cost environment. Despite multiple price hikes and pack size adjustments—including a significant increase in June 2025—the brand showed resilience, driven by strong consumer equity and pricing inelasticity. After adjusting for pack size changes, the brand registered positive volume trends in terms of units sold.
• Saffola Oils delivered strong revenue growth in the high twenties, supported by mid-single digit volume gains. The brand also took the lead in passing on the benefits of reduced import duties on edible oils to consumers.
• Value Added Hair Oils saw low double-digit growth, with recovery momentum gaining pace, especially in the mid and premium segments. The shift in investment from trade promotions to brand building, along with deeper market penetration via Project SETU, is expected to sustain this growth trajectory.

Marico’s Foods and Premium Personal Care portfolio, including digital-first brands, continued on a strong scale-up path. These segments contributed to the company's diversification efforts while maintaining healthy profitability metrics.

International Business: Broad-Based Growth Momentum

The international business recorded high-teen constant currency growth, with broad-based contributions across key geographies. Bangladesh, in particular, stood out with continued resilience and consistently high-teen growth in constant currency terms.

Revenue and Margin Overview

Consolidated revenue grew in the low twenties on a year-on-year basis, setting a solid foundation for the company’s goal of achieving double-digit growth for the full fiscal year. However, margin pressures persisted:

• Copra prices witnessed sequential inflation, partly due to unseasonal rainfall.
• Vegetable oil prices moderated after import duty reductions.
• Crude oil derivatives remained relatively stable.

As a result, gross margins were impacted due to the high base effect and pricing-led denominator inflation. Nevertheless, Marico anticipates margin pressures to ease in the second half of FY26.

Also Read: Bajaj Housing Finance Shares in Focus Amid Release of Q1FY26 Business Update

Strategic Focus and Outlook

Despite the rising input costs, the company remained committed to its brand-building investments, aligning with its long-term strategy of strengthening brand equity and accelerating portfolio diversification.

Looking ahead, Marico expects modest operating profit growth on a year-on-year basis. The company remains focused on delivering sustainable, profitable, volume-led growth through a combination of:

• Stronger core franchise performance
• Expansion of new growth engines
• Continued investment in brand equity

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