Marico's Q3 FY26: Sustained Momentum Amidst Strategic Diversification

Marico Limited, a prominent player in the Indian consumer goods sector, has reported a robust performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company demonstrated strong top-line growth and strategic execution, reinforcing its position in both domestic and international markets. Consolidated revenue from operations surged by 27% year-on-year to ₹3,537 crore, driven by an 8% underlying volume growth in India and a 21% constant currency growth in its international business. Despite facing elevated input costs, Marico managed an 11% year-on-year growth in EBITDA, reaching ₹592 crore, with profit after tax (PAT) increasing by 12% to ₹447 crore.

The India business, a cornerstone of Marico's operations, recorded revenues of ₹2,681 crore, marking a 28% year-on-year increase. This growth was underpinned by sequential improvements in underlying volume and calibrated pricing actions across its core portfolios. The company's strategic investments in distribution, particularly through Project SETU, have led to improved traction in traditional trade channels, complementing the strong growth observed in e-commerce and quick commerce. Marico's commitment to market leadership is evident, with over 95% of its India business gaining or sustaining market share and approximately 80% achieving penetration gains on a MAT basis.

Core Categories and Strategic Shifts

Marico's core categories exhibited varied but strategically aligned performances. Parachute Coconut Oil, a flagship brand, continued to demonstrate strong resilience and pricing inelasticity, with its revenue growing by a significant 50%. This performance highlights the brand's enduring consumer loyalty, even as the company anticipates passing on benefits from easing copra prices in the coming months. Value Added Hair Oils delivered a stellar quarter, recording a 29% value growth and gaining 170 basis points in value market share, reaching an all-time high of ~30%. This segment's success is attributed to a sharp strategic focus on mid and premium segments, consistent innovation, and enhanced direct reach.

In contrast, Saffola Edible Oils experienced a softer quarter, with revenue growth remaining flat. The company consciously sacrificed volumes in certain packs and channels to maintain threshold margins, reflecting a disciplined approach to profitability in an elevated pricing environment. The brand is pivoting towards premium offerings, including recently introduced Cold Pressed Oils, to drive future growth.

Financial Summary

International Business and Diversification Momentum

Marico's international business continued its robust growth trajectory, delivering 21% constant currency growth in Q3FY26 and 20% in 9MFY26. This broad-based growth was evident across key markets: Bangladesh posted 29% CCG, Vietnam rebounded to 22% CCG, MENA delivered 17% CCG, and South Africa recorded 16% CCG. The company's strategic focus on premiumization and innovation in personal care categories across these markets has visibly strengthened the international revenue construct.

The diversification into Foods and Premium Personal Care, including digital-first businesses, remains a key strategic priority. The Foods portfolio is on track to achieve 5x of its FY20 scale, aiming for ~8x by FY27, supported by a 25%+ CAGR. The digital-first portfolio, encompassing brands like Beardo and Plix, is projected to exit FY26 with an ARR of over ₹1,000 crore, targeting an exit ARR of ~2.5x of FY24 ARR by FY27 and a double-digit EBITDA margin. These initiatives underscore Marico's commitment to expanding its total addressable market and driving profitable growth.

Strategic Investments and Outlook

Marico further bolstered its portfolio with two significant strategic investments. The acquisition of a 93.27% stake in Zea Maize Private Limited, owner of the premium gourmet snacking brand