Marico Q3 Update: Sales growth in late 20s; Volumes in India are higher

Marico reported steady operating performance in the December quarter, supported by resilient demand conditions and improving consumption indicators in its core markets. The company said demand trends in the broader FMCG sector remained stable during the quarter and expressed confidence in a gradual recovery in consumption in the coming quarters, aided by easing inflation, lower GST rates improving affordability, increases in minimum support prices and a healthy sowing season.On a consolidated basis, Marico reported year-over-year revenue growth in the mid-20s, keeping the company on track to achieve its full-year growth ambitions. Input cost trends also became more favorable. Copra prices have corrected approximately 30% from recent highs and are expected to decline in the coming months with the onset of flush season. Vegetable oil prices remained high, while crude oil derivatives remained broadly supportive.

In India, Marico delivered underlying volume growth in the high single digits, which represented a slight sequential improvement. Parachute, the company’s flagship coconut oil product, continued to show strong resilience despite higher input costs and previous pricing measures.Although the brand reported a marginal volume decline during the quarter, Marico noted that volumes were positive after adjusting for million-age reductions implemented to offset price increases. This underlines the brand’s pricing power and loyal consumer base, even in a challenging cost environment.

Saffola Oil had a subdued quarter due to the impact of last year’s price increases. In contrast, the Value Added Hair Oils portfolio showed growth in the 1920s, reinforcing the continued traction within this franchise.

Marico expects to maintain double-digit growth in this segment in the short and medium term, driven by a sharper focus on mid-range and premium offerings, improved direct reach through Project SETU and the recent rationalization of GST rates.

The food sector posted a good performance during the quarter, but the company expects growth to accelerate over the next two quarters. Premium Personal Care, including digital-first brands, continued to exceed internal expectations, helping to diversify the portfolio and strengthen Marico’s presence in higher margin categories. The international activities remained an important growth engine and ensured constant currency growth in the early 1920s. Bangladesh led the way during the quarter, while Vietnam and South Africa returned to double-digit growth following targeted initiatives.

Given these trends, Marico expects gross margins to improve incrementally from the previous quarter’s trough, with further margin expansion likely in coming quarters as the benefit of lower copra costs takes hold.

The company said it continues to support brand-building investments to strengthen long-term brand equity and support accelerated diversification across its portfolio. In this context, annualized operating profit growth is expected to reach double digits.

Looking ahead, Marico reiterated its commitment to achieve sustainable and profitable volume-driven growth over the medium term, supported by strong core brands and the scale-up of new growth engines in domestic and international markets.

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