Marico Reports Strong Q1 FY26 Results, Driven by International Growth & Price Adjustments
Mumbai – August 4, 2024 – Fast-moving consumer goods (FMCG) company Marico Limited announced robust financial results for the first quarter of fiscal year 2026 (Q1 FY26), reporting a 23% year-over-year (YoY) increase in consolidated revenue to Rs 3,259 crore (approximately $390 million USD), compared to Rs 2,643 crore in the same quarter last year. Net profit for the period reached Rs 464 crore. The strong performance was fueled by double-digit growth in international markets and strategic price increases within its domestic portfolio. Shares of Marico rose as much as 2.9% intraday on the BSE following the announcement,reaching Rs 731.
Key Financial Highlights:
Consolidated Revenue from Operations: Rs 3,259 crore (up 23% YoY)
Net profit: Rs 464 crore
EBITDA: Rs 655 crore (up 5% yoy)
EBITDA Margin: 20.1% (down from 23.7% YoY, impacted by raw material costs)
India Revenue: Rs 2,495 crore (up 27% YoY)
Driving Factors & Business Segment performance:
Marico highlighted “multi-quarter highs” in both consolidated and India revenue growth, alongside strong underlying volume growth within the Indian market. The company attributed the 27% growth in India revenue to price adjustments implemented in response to rising input costs and inflationary pressures.
The international business continued to perform well, maintaining a “robust double-digit constant currency growth momentum” despite facing challenges from high input costs and currency fluctuations in certain markets.
Looking Ahead: Outlook & Strategic Goals
Marico anticipates a gradual betterment in demand in the coming quarters, supported by easing inflation, a favorable monsoon season, and continued government support. The company expects to maintain a steady growth trajectory in its core categories, even with ongoing input cost pressures.
Specifically, Marico forecasts:
Sustained Growth: Positive volume and revenue growth through FY26. Profit Resilience: Resilient profit growth despite heightened input costs.
margin Headwinds: The peak impact of margin pressures is expected in the first half of the year, with gradual easing thereafter.
Portfolio Expansion: The India revenue share of the Foods and Premium Personal Care portfolios is targeted to reach approximately 25% by FY27. Double-digit EBITDA margins are aimed for this portfolio by FY27. International Momentum: Continued double-digit constant currency growth in the international business over the medium term.
About Marico Limited:
marico Limited is a leading Indian FMCG company operating in the health, beauty, and wellness space. The company markets well-known brands across categories including hair care, skin care, edible oils, and foods. Marico has a important presence in India and a growing international footprint, serving consumers in over 25 countries.
Disclaimer: This report is based on publicly available facts from Marico Limited’s official statements and the Economic Times article referenced. it does not constitute financial advice.