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Marico gains after Q1 PAT climbs 9% YoY to Rs 504 cr

04-Aug-25 16:28 Hrs IST

Revenue from operations jumped 23.31% YoY to Rs 3,259 crore in Q1 FY26, with underlying volume growth of 9% in the India business and constant currency growth of 19% in international business.

Profit before tax (PBT) increased 8.43% to Rs 656 crore in Q1 June 2025.

EBITDA rose 5% to Rs 655 crore in Q1 FY26, compared with Rs 626 crore posted in Q1 FY25. EBITDA margin contracted by 360 bps to 20.1% in Q1 FY26 as against 23.7% in Q1 FY25.

The India business reported revenues of Rs 2,495 crore, registering the growth of 27% YoY, further aided by price hikes in core portfolios in response to sharp inflation in input costs. Offtake growth also remained strong, with around 99% of the business gaining or sustaining marketshare and approximately 80% of the business gaining or sustaining penetration, both on MAT basis.

Parachute Rigids registered 1% volume decline amidst unprecedented hyperinflationary input costs and pricing conditions. After adjusting for ml-age changes (i.e. in terms of number of packs sold), the brand grew by 1% during the quarter. Value-Added Hair Oils grew by 13% in value terms, witnessing a considerable step-up in the pace of recovery, driven by sustained traction in the mid and premium segments.

Saffola Edible Oils posted mid-single digit volume growth amidst a relatively elevated pricing environment. The brand registered 28% revenue growth, while also proactively passing on the benefit of the recent import duty reduction on vegetable oils to consumers. Foods business posted around 20% value growth YoY. In Premium Personal Care segment, the digital-first portfolio exited the quarter with an annual recurring revenue of more than Rs 850 crore.

In the international markets, Bangladesh posted 17% CCG, continuing to demonstrate resilience. Vietnam had a muted quarter, but is expected to witness gradual recovery in the coming quarters. MENA continued its robust growth momentum and delivered 42% CCG, with both the Gulf region and Egypt recording strong growth.

South Africa recorded flattish growth in CCG terms, while the growth aspiration for the year remains intact. NCD and Exports recorded 37% growth.

On the outlook front, the company anticipated a gradual uptick in overall demand patterns in the quarters ahead, aided by a combination of easing inflation levels, favorable monsoon season and continued policy support.

It expects a steady growth trajectory in its core categories, despite input cost headwinds in the near term. This will be further aided by ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in its direct reach footprint under Project SETU. The company will continue focusing on delivering differentiated growth in urban-centric and premium segments through organized retail and e-commerce channels.

The company aims to grow Foods business at a CAGR of over 25%, targeting approximately 8x FY20 revenues (around 2x of FY24 revenues) by FY27. It also plans to scale its Digital-first portfolio to about 2.5x of FY24 ARR by FY27, up from its previous target of 2x. It expects the India revenue share of the Foods and Premium Personal Care portfolios is expected to expand to approximately 25% by FY27.

Among Digital-first brands, Beardo is likely to cross double-digit EBITDA margin this year, while Plix is delivering single-digit EBITDA margin. It aims to maintain the pace of scale up and achieve double-digit EBITDA margin in this portfolio in FY27.

Saugata Gupta, MD & CEO commented, 'The new fiscal has begun on a promising note for both our India and international businesses, with growth trends moving in a positive direction. The improving trajectory of our core portfolios, coupled with accelerated growth in foods and digital-first portfolio, have driven underlying volume growth in the India business closer to double digits. The new businesses continue to scale up ahead of our aspirations, reaffirming their differentiated long-term potential.

The international business delivered a stellar quarter, and we remain confident of sustaining this performance in the quarters ahead. Despite sharp inflationary headwinds in key commodities in the near term, we expect to maintain strong volume and revenue momentum, along with a resilient earnings performance, over the course of the full year.'

Meanwhile, Marico intends to integrate the business of Apcos Naturals (Apcos), a wholly owned subsidiary operating under the 'Just Herbs' brand, into the company. This intra‐group restructuring is likely to result in operational synergies, cost optimization, efficient resource allocation and simplified corporate group structure.

Marico is one of India's leading consumer products companies, in the global beauty and wellness space. It sells products under brands such as Parachute, Saffola, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs etc.