Marico Q4 Results: Profit Rises 8% as Revenue Crosses ₹10,000 Cr

Introduction

FMCG major Marico Limited has concluded the financial year 2024-25 on a strong note, reporting an 8% year-on-year increase in consolidated net profit for the fourth quarter. The company's strategic focus on diversification, particularly in its Foods and Digital-first portfolios, has propelled its revenue past the significant ₹10,000 crore milestone for the full year. Despite facing margin pressures from rising input costs, Marico demonstrated resilience, delivering robust growth and announcing a final dividend of ₹7 per share for its investors.

Q4 Financial Performance Breakdown

For the quarter ended March 31, 2025, Marico posted a consolidated Profit After Tax (PAT) of ₹343 crore, an 8% improvement from the ₹318 crore recorded in the corresponding quarter of the previous year. Revenue from operations saw a substantial 20% year-on-year jump, reaching ₹2,730 crore compared to ₹2,278 crore in Q4 FY24. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 4% to ₹458 crore. Profit Before Tax (PBT) also registered a healthy 10.53% increase, standing at ₹441 crore.

Annual Highlights for FY25

The full financial year 2025 was a landmark period for Marico. The company's consolidated revenue for the year grew by 12%, reaching ₹10,831 crore, surpassing the ₹10,000 crore mark for the first time. This achievement was highlighted by the management as a momentous occasion. The annual net profit also saw an 8% rise, increasing to ₹1,593 crore from ₹1,470 crore in FY24. This performance underscores the company's ability to navigate a challenging macroeconomic environment while executing its growth strategy effectively.

Margin Pressures and Input Costs

While the topline growth was impressive, Marico faced headwinds on the cost front. The company reported a contraction in its gross margin by approximately 300 basis points during the fourth quarter. This was primarily attributed to a sharp increase in the prices of key inputs such as copra and vegetable oils. Consequently, the EBITDA margin declined by 260 basis points to 16.8% from 19.4% in the year-ago period. To support its brand-building and diversification efforts, Marico increased its advertising and promotion (A&P) spending by a significant 35% year-on-year during the quarter.

Financial Performance Summary

India Business: Volume Growth and Diversification

The India business was a key contributor to the strong performance, recording a 23% revenue growth to ₹2,068 crore in Q4, its strongest in 14 quarters. This was supported by an underlying volume growth of 7%. The company's diversification strategy is yielding positive results, with the Foods and Premium Personal Care (PPC) portfolios now contributing 22% to the total India revenues in FY25. Marico reported that approximately 95% of its India business either gained or sustained its market share during the year.

The Rise of Digital-First Brands

Marico's focus on building a digital-first portfolio has been particularly successful. Brands such as Beardo, Just Herbs, and Plix have gained significant traction, exiting FY25 with an Annual Revenue Run-rate (ARR) of ₹750 crore. This outperformance is a crucial element of the company's strategy to tap into new consumer segments and channels, reducing its dependence on traditional product categories.

Strong International Momentum

The international business also maintained its strong growth trajectory, posting a 16% constant currency growth in the fourth quarter and 14% for the full year. Key markets like Bangladesh, MENA (Middle East and North Africa), and South Africa were the primary growth drivers. The MENA region was a standout performer with 47% growth in Q4. The company's focus on premiumisation in international markets has increased the contribution of premium categories to 29% of international revenues.

Management Commentary and Outlook for FY26

Saugata Gupta, MD & CEO of Marico, expressed satisfaction with the results, stating, "The fiscal year 2024-25 has closed on a momentous note with consolidated revenues crossing the ₹10,000 crore mark. We have met our double-digit revenue growth aspiration, backed by top quartile volume growth in the India business and robust growth in the International business." Looking ahead to FY26, Marico expects to sustain double-digit growth in both revenue and operating profit. The company aims to increase the revenue share of its Foods and PPC portfolios to 25% by FY27, supported by initiatives like Project SETU to expand its direct distribution reach.

Market Reaction and Shareholder Returns

In light of the strong performance, Marico's Board of Directors recommended a final dividend of ₹7 per equity share for FY25. The market responded positively to the results, with Marico's stock price trading at ₹724.80 on the NSE on May 5, 2025, reflecting a single-day increase of 3.62%. The stock has delivered strong returns over the long term, with a five-year return of 148.28%.

Conclusion

Marico's Q4 and FY25 results highlight a company successfully navigating inflationary pressures through strategic diversification and strong execution. The milestone of crossing ₹10,000 crore in annual revenue, coupled with consistent profit growth, demonstrates the strength of its core brands and the potential of its newer ventures in Foods and Digital-first segments. While input cost volatility remains a key factor to monitor, Marico's clear strategy and positive outlook for FY26 position it well for sustained, volume-led growth.