Marico Q3 FY26 Results: Revenue Grows in High Twenties

Marico Reports Strong Q3 Performance

Marico Ltd announced a robust operating performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported consolidated revenue growth in the high twenties year-on-year, signaling strong momentum heading into the final quarter. This performance was supported by steady demand trends and a positive outlook for consumption, aided by easing inflation and favorable agricultural conditions. The company's update suggests it is well-positioned to meet its full-year financial targets.

India Business Delivers Steady Volume Growth

Marico's domestic business was a key contributor to its quarterly performance, delivering high-single-digit underlying volume growth. This marks a sequential improvement and highlights the company's resilience in the Indian market. Demand trends remained stable, with the company expecting a gradual improvement in overall consumption in the coming months. Factors such as lower GST rates, minimum support price (MSP) hikes for crops, and a healthy sowing season are anticipated to bolster consumer spending.

Performance Across Key Brands

The performance across Marico's brand portfolio in India was varied. The flagship Parachute coconut oil brand demonstrated resilience despite facing elevated input costs and subsequent pricing actions. While it recorded a marginal volume decline, volumes turned positive after adjusting for pack size reductions, which were implemented as an alternative to direct price hikes.

Value Added Hair Oils emerged as a strong performer, posting growth in the twenties. This sustained traction reinforces the strength of the franchise. Marico expects to maintain double-digit growth in this segment, supported by a focus on mid and premium products, expanded direct reach via its Project SETU initiative, and recent GST rate rationalizations. In contrast, Saffola Oils had a muted quarter as the effects of previous pricing actions anniversarised. The Foods portfolio also had a benign quarter but is projected to return to accelerated growth over the next two quarters.

International Business Maintains Strong Momentum

Marico's international operations continued to be a significant growth engine, recording constant-currency growth in the early twenties. The performance was broad-based, with the Bangladesh business leading the charge. Other key markets, including Vietnam and South Africa, returned to double-digit growth following the implementation of targeted strategic initiatives. This robust international performance underscores the success of Marico's global diversification strategy.

Favorable Cost Trends and Margin Outlook

On the cost front, Marico noted a significant correction in copra prices, which have fallen by approximately 30% from their recent highs. The company expects this downward trend to continue in the coming months, driven by the upcoming flush season. While vegetable oil prices remained elevated, crude oil derivatives were benign, providing some cost relief.

As a result of these trends, Marico anticipates a sequential improvement in its gross margins, which had bottomed out in the previous quarter. Further margin expansion is likely as the benefits of lower copra costs are passed through with a lag. This improved cost structure provides a solid foundation for profitability.

Profitability and Future Outlook

Despite the cost pressures, Marico continued to invest in brand building to strengthen the long-term equity of its franchises and support its portfolio diversification efforts. Against this backdrop, the company expects its operating profit growth to reach double digits on a year-on-year basis for Q3 FY26.

Looking ahead, Marico remains optimistic about its growth trajectory. The combination of steady domestic demand, strong international performance, and improving margins positions the company to achieve its full-year aspirations. The company reiterated its medium-term goal of delivering sustainable and profitable volume-led growth by strengthening its core brands and scaling new growth engines. Ahead of the announcement, shares of Marico Ltd closed at ₹758 on the NSE.