Marico reports high-20s revenue growth in Q3, flags steady demand trends

New Delhi: FMCG player Marico on Friday said it observed “steady demand” trends during the December quarter and remains “optimistic” about a gradual improvement in consumption in the coming quarters.

In its updates to the bourses, Marico cited easing inflation, lower GST rates, MSP hikes, and a healthy crop sowing season as supportive factors for the market.

“During the quarter, underlying volume growth in the India business remained in high single digits, while marking a slight improvement on a sequential basis,” the company said.

It added, “Consolidated revenue growth on a year-on-year basis stood in the high twenties, poised to achieve our full year aspiration.”

Marico’s flagship product Parachute continued to show resilience amid elevated input costs and pricing pressures, recording a marginal volume “decline”, which was positive after normalising for ml-age reductions following price adjustments.

While Saffola Oils had a muted quarter, value-added hair oils grew in the twenties. “We expect to maintain the double-digit growth momentum in this franchise over the near and medium term, supported by the strategic focus in the mid and premium segments of the portfolio, enhanced direct reach driven by Project SETU and the recent GST rate rationalization,” Marico said.

The foods segment experienced a “benign quarter”, but the company expects it to return to accelerated growth over the next two quarters, while premium personal care, including digital-first brands, continued to scale ahead of expectations.

Marico’s international business maintained growth in the early-20s on constant currency terms. “…Bangladesh led from the front, while Vietnam and South Africa bounced back to double-digit growth on the back of targeted initiatives,” the company added.

On commodity prices, Marico noted that copra prices have corrected 30 per cent from recent highs and are expected to trend downwards in the coming months, contributing to anticipated gross margin improvements through lagged pass-through of lower costs.

“We sustained brand-building investments to continually strengthen the long-term equity of our franchises and drive accelerated portfolio diversification. In the given context, we expect operating profit growth to touch double-digits on a year-on-year basis,” the company said.

Marico said a detailed update will follow after the board approves Q3 FY26 financial results.