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

Introduction

Marico Ltd, a prominent player in the Indian FMCG sector, announced its financial results for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a strong performance, with a 12.03% year-on-year increase in consolidated net profit and a significant 26.6% jump in revenue from operations. This growth was fueled by robust demand in both its domestic and international markets. However, the impressive top-line growth was accompanied by pressure on operating margins due to rising input costs, presenting a mixed but overall positive quarter for the company.

Detailed Financial Performance

For Q3 FY26, Marico's consolidated net profit stood at ₹447 crore, a notable increase from ₹399 crore in the corresponding quarter of the previous fiscal year. On a sequential basis, the profit grew by 6.43% from ₹420 crore in Q2 FY26. The company's revenue from operations surged to ₹3,537 crore, compared to ₹2,794 crore in Q3 FY25. This reflects a strong consumer uptake and effective pricing strategies implemented over the past year. Despite the healthy growth in profit, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin saw a contraction. EBITDA for the quarter grew 11% year-on-year to ₹592 crore, but the EBITDA margin declined by 234 basis points to 16.7% from 19.1% in the same period last year.

Key Financial Metrics for Q3 FY26

Cost Pressures and One-Time Impact

The decline in operating margins was primarily driven by a sharp increase in input costs. Material costs for the quarter rose by 42% year-on-year to ₹1,997 crore. Total expenses also increased by 29.8% to ₹3,009 crore. In a regulatory filing, Marico also disclosed a one-time impact of ₹6 crore during the quarter. This expense was related to the actuarial valuation of its gratuity and leave encashment liabilities, arising from the implementation of new Labour Codes.

India Business Drives Growth Momentum

Marico's domestic business was a key contributor to its strong performance, with revenues reaching ₹2,681 crore, a 28% increase year-on-year. This growth was supported by an underlying volume growth of 8%. The company stated that pricing interventions across its core portfolios over the last 12 months, in response to inflation, also supplemented the revenue increase. Marico successfully gained or sustained its market share in 95% of its portfolio. Growth was particularly strong in e-commerce and quick commerce channels, indicating a successful adaptation to evolving consumer purchasing habits.

International Business Delivers Consistent Performance

The international business continued its robust growth trajectory, posting a 21% increase in constant currency terms. In INR terms, revenue from international markets grew 24% year-on-year to ₹856 crore. The company reported that every market delivered broad-based, double-digit growth, with Vietnam and South Africa showing a smart rebound following targeted initiatives. This consistent performance underscores the strength and diversification of Marico's global operations.

Management Commentary and Outlook

Saugata Gupta, Managing Director and CEO of Marico, commented on the results, stating, “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. The India business has delivered strong volume and revenue growth, supported by improving trends in core categories and the profitable scaling up of Foods and digital-first businesses in line with our strategic priorities.” Looking ahead, Gupta expressed optimism, expecting to sustain the healthy volume growth momentum. He also anticipates that profitability will strengthen progressively as pressures from input costs begin to moderate, particularly with the recent easing of copra prices.

Market Reaction

Following the announcement of the results, which came after market hours on January 27, 2026, the company's shares showed a marginal positive movement. Shares of Marico closed at ₹747.20 on the BSE, up slightly for the day. The market appears to have balanced the strong revenue growth against the concerns over margin compression.

Conclusion

Marico's Q3 FY26 results highlight its resilience and ability to drive strong top-line growth in a challenging inflationary environment. The double-digit increase in both profit and revenue, powered by strong execution in domestic and international markets, is a positive sign. While margin pressures remain a near-term challenge, the management's focus on agile execution and a positive outlook on moderating input costs suggest that the company is well-positioned to continue its growth trajectory and improve profitability in the coming quarters.