Marico Jumps 6% as Its India Profit Grows at the Fastest Pace in 51 Quarters and FY27 Guidance Goes Up

Shares of Marico rose about 6% in early trade on Tuesday, a day after the consumer goods company behind Parachute, Saffola and Livon reported its strongest quarter in years and raised its outlook for the full year. The stock opened at Rs 832.55 on the NSE and quickly touched Rs 847.55. It was among the most actively traded stocks by value in the first few minutes of the session, with more than Rs 200 crore worth of shares changing hands.

A quarter driven by volumes, not just prices

Consolidated net profit for the September quarter rose 29% from a year earlier to Rs 558 crore, against Rs 432 crore. Revenue from operations grew about 13% to Rs 3,897 crore. Operating profit (Ebitda) climbed 27% to Rs 710 crore, and the Ebitda margin widened by about two percentage points to 18.2%.

What stands out is where the growth came from. The India business delivered underlying volume growth of 10%, meaning consumers bought more product, not simply the same amount at higher prices. Domestic revenue rose almost 10% to Rs 2,916 crore, while domestic net profit grew 31%, the fastest in 51 quarters. The international business, which includes markets such as Bangladesh, Vietnam and the Middle East, grew 13% in constant-currency terms.

Gross margin expansion helped too. Prices of copra, the dried coconut that is the main raw material for Parachute oil, have eased, and a richer product mix lifted profitability further.

Guidance raised mid-year

Management lifted its FY27 Ebitda growth target to the mid-20s in percentage terms, up from high-teens earlier. It also said it now expects to reach its revenue goal of Rs 20,000 crore a year ahead of the FY30 deadline it had set. The company pointed to stronger Parachute volumes, a better mix, and improving profitability in its foods and digital-first brands as the reasons for the upgrade.

New products are starting to add up. Marico expects its Parachute shampoo to cross Rs 100 crore of revenue within this financial year, and it is targeting Rs 400 crore to Rs 500 crore over the medium term from shampoos and almond oils combined. It is also expanding in protein products through brands including Saffola, Cosmix, Plix and True Elements.

Why the market is rewarding it

The reaction says as much about the sector as about Marico. Several large consumer companies have reported patchy demand and margin pressure this season. Godrej Consumer, for example, fell to a 52-week low last week after warning that costs would worsen in the December quarter. An earnings upgrade in this environment is unusual, and brokerages noted as much.

Jefferies kept its buy rating, raised its target price to Rs 1,035 from Rs 1,000 and nudged its earnings estimates for FY27 to FY29 up by 2% to 3%. It described Marico as a steady compounder whose premium valuation reflects that consistency. Motilal Oswal also reiterated a buy, with a target of Rs 975, while cautioning that sustaining the current momentum would be key.

What to watch

The biggest swing factor is copra. Lower coconut prices have been a tailwind for gross margins, and any reversal would test the new guidance. The stock's premium valuation also leaves less room for disappointment. For now, Marico is one of the few large consumer names showing growth in both volumes and margins at the same time, and investors are paying up for that combination.

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