However, Marico’s consolidated operating revenue rose 26.6 percent to Rs 3,537 crore in the December quarter of FY26. It stood at Rs 2,794 crore in the corresponding period a year ago.This revenue growth was led by “underlying volume growth of 8 percent in the Indian operations and constant currency growth of 21 percent in the international operations,” according to an earnings statement from Marico, owner of popular brands such as Saffola, Parachute and Livon.
Commenting on the FMCG sector, Marico said the sector has witnessed “steady demand trends” throughout the year so far.
“We are optimistic about a gradual revival in consumption trends across all categories in the coming quarters, supported by favorable macroeconomic indicators and the prospects of further stimulus measures in the upcoming Union Budget,” Marico said.
During the quarter, Marico’s advertising and promotional spend increased 15 percent year over year. As a result, EBITDA grew 11 percent year-on-year, with an EBITDA margin of 16.7 percent, down 234 basis points year-on-year.
Marico’s total costs rose 29.8 percent to Rs 3,009 crore in the December quarter.
In addition, Marico’s gross margin improved “by 90 basis points on a sequential basis” due to the recent easing of copra prices, while “remaining under pressure with a decline of 595 basis points year-on-year.”
Marico’s revenues from the domestic market rose 27.6 percent to Rs 2,681 crore in the December quarter.
This was “following a sequential improvement in underlying volume growth, complemented by price interventions in the core portfolios over the past twelve months, in response to inflation in key input costs”.
Traction in traditional trading improved in the December quarter. Moreover, e-commerce and fast trade also continued to lead growth.
“Offtake growth also remained strong, with over 95 percent of companies gaining or maintaining market share and ~80 percent of companies gaining or maintaining penetration, both on a MAT (moving annual total) basis,” the report said.
Offtake growth refers to an increase in the volume of goods sold from a producer’s inventory, which is a signal of rising consumer demand or greater market uptake. It often indicates a strengthening of market demand for a product and improved sales performance.
Revenue from international markets also rose 23.52 percent to Rs 856 crore.
“The global business continued its robust growth trajectory with constant currency growth of 21 percent, with each market delivering broad double-digit growth. Vietnam and South Africa recovered in recent quarters thanks to targeted initiatives,” Marico said.
Marico’s total consolidated revenue, including other income, stood at Rs 3,576 crore, up 26.09 percent during the quarter under review.
Commenting on the results, MD & CEO Saugata Gupta said: “Our quarter and year-to-date performance reflects the strength of our business model and the effectiveness of agile execution in delivering consistent results.
“The Indian operations delivered strong volume and revenue growth, supported by improving trends in core categories and the profitable scaling of food and digital first businesses in line with our strategic priorities.”
“Looking ahead, we expect to maintain healthy volume growth momentum, with profitability gradually increasing as input cost pressures ease,” said Gupta.
Shares of Marico settled at Rs 745.90 per scrip on the BSE on Tuesday, up 0.67 percent from the previous close.
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