Marico is excited on market analysts – Marico is Excted on Market Analysts

Most FMCG companies have to struggle to maintain the speed of growth amid weak urban consumption. However, Marico has plans for coherent growth and product diversification so that it can perform better in future.

In the third quarter of FY 2025, the company’s integrated gross margin declined by 180 basis points to 49.5 per cent on a annual basis. Copra prices increased by 38 per cent on an annual basis and the rise in Rice Bran Oil by 19 per cent increased inflation, affecting gross margin. The company’s EBITa margin declined by 210 basis points to 19.1 percent on a annual basis. After adjusting, the benefits rose by 4 per cent on an annual basis.

The company has targeted a two -digit increase with the strong pace of growth in core segments and a boom in new -age businesses and a strong increase in international markets. It has noticed the price-addicted products in the food and premium personal care segment and its goal is to achieve 20-25 percent CAGR in these areas. Despite the price hike (15–20 percent), the demand for parachute and Safola branded products remains stable.

In Safola, the food segment will contribute 50 percent of the total revenue during the next 4-5 years, which is 30 percent at this time. In digital, Plix and Beyardo are showing strong growth. The company is expanding direct access to general trade through project bridge and is also promoting Quick Commerce, which is 3 percent of sales in India. Project Setu will take direct distribution from 10 lakh to 1.5 million outlets by FY 2027.

The company expects a revenue increase of two points in FY 2026. High production costs may reduce margin, but long -term approach is based on product mixing and improving premiumization.

The management says that the rural demand is improving while in some quarters, urban demand may also improve, as inflation is soft. Recently, the tax relief benefits given to people in the Union Budget may increase urban consumption. Parachute coconut oil is expected to increase sales of 5-7 percent. The impact of the previous price hike will begin to appear from the second quarter of FY 2026. Value added hair oil segment is expected to improve gradually. The mid and premium segment will perform better in this category. The food category is expected to have 20-25 percent CAGR. The sale of Safola brand is different, with 70 percent of oils and 30 percent of foods.

First Published – March 31, 2025 | 11:03 pm IST