Marico Q3 Results: Profit Rises 12% to ₹447 Crore, Revenue Soars 27%

Introduction

Marico Ltd, a leading fast-moving consumer goods (FMCG) company, announced a strong performance for the third quarter of the financial year 2025-26. The company reported a 12.03% year-on-year increase in consolidated net profit, which stood at ₹447 crore. This growth was primarily driven by a significant 26.6% surge in revenue from operations, which reached ₹3,537 crore for the quarter ending December 2025. The performance surpassed market expectations, reflecting the company's resilient operating model and effective execution across both domestic and international markets.

Detailed Financial Performance

Marico's financial results for Q3 FY26 showcased robust top-line growth, although profitability faced some pressure from rising input costs. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 11% year-on-year to ₹592 crore. However, the EBITDA margin contracted by 234 basis points, settling at 16.7% compared to 19.1% in the same quarter of the previous year. This decline was attributed to higher material costs, which increased by 42% YoY to ₹1,997 crore. During the quarter, Marico also accounted for a one-time impact of ₹6 crore related to the implementation of new Labour Codes on its gratuity and leave encashment liabilities.

India Business Delivers Resilient Growth

The domestic business was a significant contributor to the quarter's success, with revenues climbing 28% year-on-year to ₹2,681 crore. This was supported by an underlying volume growth of 8%. The company reported that over 95% of its portfolio either gained or sustained market share, while approximately 80% of its business improved penetration on a moving annual total (MAT) basis. Parachute Coconut Oil, a key brand contributing 36% of India's revenues, saw a 2% volume growth after normalizing for packaging size reductions. In contrast, the Saffola edible oils portfolio reported a marginal decline in volumes as consumers navigated inflationary pressures.

International Business Maintains Strong Momentum

Marico's international operations continued to be a strong growth engine, with revenues rising 24% in rupee terms and 21% in constant currency terms. This performance underscores steady demand across key overseas markets. The company noted that every international market delivered broad-based, double-digit growth. Markets such as Vietnam and South Africa showed a smart rebound following targeted strategic initiatives, while the Bangladesh business continued its strong performance, reinforcing the success of Marico's global diversification strategy.

Strategic Moves to Sharpen Portfolio

During the quarter, Marico made significant strategic moves to strengthen its portfolio. The company announced a strategic investment in Zea Maize, the owner of the premium snacking brand 4700BC. Marico will acquire a 93.27% stake from PVR INOX for ₹227 crore, making Zea Maize a subsidiary. This acquisition aligns with Marico's strategy to expand its presence in the healthy and premium foods segment. Additionally, Marico announced the integration of its digital-first men's grooming brand, Beardo. The company will voluntarily liquidate its wholly-owned subsidiary, Zed Lifestyle, and transfer the business to the parent company to drive operational synergies.

Input Costs and Margin Outlook

The company's gross margins faced year-on-year pressure due to inflation in key input costs. However, there was a sequential improvement of 90 basis points, largely due to a significant correction in copra prices, which fell by approximately 30% from their recent peaks. While vegetable oil prices remained elevated, the easing of copra costs is expected to provide further margin relief in the upcoming quarters. The company continued to invest in brand-building, with advertising and promotion spending up 15% year-on-year to support its franchises.

Management Commentary and Future Outlook

Saugata Gupta, MD and CEO of Marico, stated, "Our performance in the quarter and year so far reflects the strength of our operating model and the effectiveness of agile execution in driving consistent outcomes." He expressed optimism about a gradual uptick in consumption trends, supported by favorable macroeconomic indicators. Looking ahead, the company expects to sustain healthy volume growth momentum, with profitability strengthening as input cost pressures moderate. Marico remains on track to deliver double-digit EBITDA margins by FY27.

Market Reaction

Following the announcement of the results after market hours on January 27, 2026, shares of Marico closed marginally higher. The stock settled at ₹745.90 on the BSE, up 0.67% from its previous close, and at ₹747.20 on the NSE. The positive results were largely in line with or slightly ahead of analyst expectations, reflecting the market's confidence in the company's growth trajectory.