Marico Q1FY26: Revenue up 23%, margins pressured

Key takeaway for investors

Marico, the maker of Parachute coconut oil and Saffola edible oils, has reported another quarter of strong revenue growth led by improving volumes in India and steady performance in its international business. The company said its India business delivered double-digit underlying volume growth at a multi-quarter high, signalling a sharper recovery in consumption trends after a period of slower expansion. At the same time, Marico has cautioned that profitability could remain under pressure as input costs rise, citing higher costs linked to tensions in the Middle East.

Q1FY26 results at a glance

For the April to June quarter of FY26, Marico reported consolidated revenue from operations of ₹3,259 crore, up 23.3% year-on-year. Consolidated net profit rose 8.2% year-on-year to ₹513 crore. EBITDA increased 4.6% to ₹655 crore, while EBITDA margin declined to 20.1% from 23.7% a year earlier.

The company also disclosed that India business revenue rose 27% year-on-year to ₹2,495 crore in the quarter, while the international business delivered 19% constant currency growth. In rupee terms, international business revenues increased 12%, with Marico attributing the difference to currency headwinds.

India business: volumes improve to near double digits

Marico said its India business continued to show sequential improvement in underlying volume growth. The company reported 9% underlying volume growth in India in Q1FY26. Management commentary indicates that the focus remains on pushing volume growth higher, with references to progress over recent quarters from 5% to 9%.

In a separate update, the company said it expects to deliver double-digit growth in one or two quarters in the domestic market, supported by core franchises and scaling of newer businesses. It also stated that high single-digit volume growth is a base case, after reporting India volume growth of 9% in the June quarter.

Parachute and Saffola: core franchises drive revenue momentum

The company highlighted that Parachute posted double-digit volume growth, described as the highest in several quarters. Marico also pointed to strength in its value-added hair oils portfolio, where it said revenue growth was in the twenties, supported by premium offerings and distribution expansion.

For Q1FY26, Marico reported that Saffola grew 28% and Parachute delivered 31% revenue growth despite a volume decline and higher copra prices. Within Parachute, the company noted Parachute Rigids registered a 1% volume decline but achieved 31% revenue growth amid what it described as unprecedented input cost inflation.

Pricing actions helped revenues, but raised margin concerns

Marico’s revenue performance has been supported by pricing actions in response to sharp inflation in input costs. Management indicated that price increases contributed to stronger top-line growth, alongside improvements in domestic volumes.

But the company has also warned that margins could narrow. Reuters reported that Marico flagged shrinking margins after Middle East tensions drove up input costs. The company’s Q1 margin decline to 20.1% from 23.7% a year earlier reflects that pressure, even as demand remained steady.

International business: constant currency growth stays healthy

Marico said it remains confident of delivering mid-teens growth in its international business on a constant currency basis for the fiscal year. In Q1FY26, the international business posted 19% constant currency growth.

The company also highlighted strong performance in specific markets, with growth in MENA at 42% and Bangladesh at 17% during the quarter, as cited in the results commentary. While international revenues rose 12% in rupee terms, the company attributed the gap versus constant currency growth to currency headwinds.

Reuters and Street expectations: Q4 beat and FY27 revenue view

In a separate Reuters report dated May 5, Marico projected annual revenue would exceed expectations due to consistent volume growth and premiumisation, while cautioning on possible price increases and narrowing profit margins. Marico estimated consolidated revenue would exceed ₹15,000 crore for the fiscal year ending March 2027, above the LSEG estimate of ₹14,694 crore.

Reuters also reported that in the fourth quarter, Marico’s revenue rose 22% to ₹3,333 crore, while profit increased 14% to ₹391 crore, beating an estimate of ₹385 crore. The company attributed the revenue growth to price hikes and steady demand.

Forward indicators: what management and analysts are tracking

Beyond Q1FY26, market tracking notes in the provided material indicate that Q3FY26 revenue growth is estimated to be in the high twenties year-on-year, with domestic volume growth in high single digits year-on-year. Another estimate cited suggests consolidated sales growth of 27% to 28% year-on-year in Q3FY26, with India volume growth around 7.5%.

Marico also said it expects a gradual uptick in overall demand patterns in the quarters ahead, supported by easing inflation, a favourable monsoon season, and continued policy support. It reiterated expectations of double-digit revenue growth in the medium term, market share gains in India core portfolios, accelerated growth in Foods and Premium Personal Care, and double-digit constant currency growth in the international business.

Key numbers table

What to watch next

The near-term story for Marico hinges on the balance between volume growth and cost pressures. The company has indicated it is targeting high single-digit volume growth as a base case, with an attempt to hit double-digit growth in one or two quarters. Investors will also track how pricing actions flow through demand, and whether input costs remain elevated, given Marico’s warning on margin compression tied to global developments.

On July 3, Reuters reported that Marico announced low-twenties percentage growth in consolidated revenue for the quarter ended June 30, supported by steady rural demand, while acknowledging pressure on profit margins. That sets the context for upcoming quarters where management has pointed to continued volume improvement and growth in premium segments, but with profitability sensitive to commodity and geopolitical-driven cost moves.