Synopsis: Marico’s share price is in focus after posting steady Q1 FY27 results with strong India volume growth led by Parachute. International business grew in the mid-teens, while Bangladesh was weak. Saffola volumes fell due to optimization. Revenue is expected to grow in the early twenties, and margins may improve as copra prices decline.
The shares of the large-cap company, which specializes in the global beauty, wellness, and health foods sectors and is one of India’s leading FMCG companies, are in focus following its Q1 update. In this article, we explore whether Marico’s Q1 update is signalling better earnings ahead.
With a market capitalisation of Rs. 1,09,194.30 crores in the day’s trade, the shares of Marico Ltd rose upto 2.0 percent, making a high of Rs. 874.00 per share compared to its previous closing price of Rs. 856.25 per share.
What happened
Marico’s Q1 FY27 update indicates steady demand conditions with resilient economic activity. The India business delivered strong performance, led by double-digit volume growth, with Parachute Coconut Oil posting its best performance in several quarters. Value Added Hair Oils and new-age segments like Foods and Premium Personal Care continued to scale, while Saffola Oils saw revenue growth but lower volumes due to selective supply optimization.
International operations maintained strong momentum with mid-teens constant currency growth, supported by Vietnam and MENA, though Bangladesh saw temporary moderation due to pricing effects and softer demand in a high-inflation environment. Overall, consolidated revenue is expected to grow in the early twenties, driven by broad-based strength across core and emerging businesses.
On the margin side, rising crude-linked and vegetable oil costs were partially offset by a sharp correction in copra prices, which are down ~45% from peak levels but still above historical averages. This is expected to improve gross margins sequentially. With continued brand investments and diversification efforts, operating profit is projected to grow strongly, supporting the company’s medium-term outlook of sustainable, volume-led profitable growth. Here’s what brokerages said after Marico’s Q1 business update:
Morgan Stanley on Marico
Morgan Stanley maintained an Overweight rating with a target price of Rs 934 and upside potential of 9% from the previous close. It said Q1 topline growth was better than expected, supported by steady consumption trends and improving demand visibility. The brokerage highlighted that Ebitda growth remains the key metric to watch during the earnings season.
It also noted that macro factors like inflation and El Niño’s impact on monsoon remain key monitorables. Overall, the outlook remains constructive, with continued optimism on consumption recovery.
JPMorgan on Marico
JPMorgan maintained an Overweight rating with a target price of Rs 900 and upside potential of 5% from the previous close, noting that Q1 revenue beat expectations, driven by strong volume growth. It expects Ebitda growth in the high teens, supported by resilient operating performance and improving demand trends.
The brokerage added that confidence has increased in Marico’s ability to sustain high single-digit volume growth. This is backed by portfolio diversification and continued investments in core categories.
Macquarie Group on Marico
Macquarie maintained an Outperform rating with a target price of Rs 890 and upside potential of 4% from the previous close. It said the pre-quarter update was better than expected, reflecting sequential improvement in volume growth across segments.
It expects Ebitda to grow about 15% in Q1, driven by steady operational recovery. The outlook indicates improving demand momentum and stable execution in core and emerging businesses.
Goldman Sachs on Marico
Goldman Sachs maintained a Buy rating with a target price of Rs 900 and upside potential of 5% from the previous close. It highlighted a strong Q1 performance, with double-digit volume growth led by Parachute and continued momentum in Value Added Hair Oils and newer businesses.
It expects Ebitda growth in the high teens, supported by sequential margin recovery and broad-based volume expansion. The brokerage remains positive on sustained growth visibility.
Marico Q1 Update: Better Earnings Ahead?
Marico’s Q1 FY27 update points to strong underlying demand, with double-digit volume growth in India and solid performance from Parachute Coconut Oil, Value Added Hair Oils, and newer categories. International markets also remained resilient, supporting overall broad-based revenue growth. This strength across segments suggests healthy business momentum going into the coming quarters.
On profitability, improving input cost trends especially the sharp correction in copra prices- are expected to support margin recovery. Brokerages broadly see high-teens EBITDA growth, indicating operating leverage from stronger volumes and improving mix. This combination typically supports better earnings delivery ahead.
However, risks like inflation, monsoon uncertainty, and weakness in select international markets could limit the pace of improvement. Even so, the overall commentary from both the company and brokerages suggests a constructive outlook, making the case that earnings are likely to improve from current levels.
Financials & Others
The company’s revenue rose by 22.09 percent from Rs. 2,730 crores in Q4FY2025 to Rs. 3,333 crores in Q4FY2026. Net profit rose from Rs. 345 crores to Rs. 408 crores in the same period.
The company has demonstrated strong financial efficiency with a Return on Capital Employed (ROCE) of 47.2% and a Return on Equity (ROE) of 43.0%, reflecting its ability to generate high returns from the capital it uses. Over the past three years, the company has maintained a consistent ROE of around 41.0%, indicating stable and efficient profit generation over time.
The company also maintains a conservative capital structure with a low debt-to-equity ratio of 0.13, suggesting limited reliance on borrowed funds. Along with this financial strength, Marico has delivered a healthy dividend payout of about 65.1%, highlighting its focus on rewarding shareholders while continuing to sustain strong business performance.
Marico Limited is one of India’s leading consumer products companies in the beauty and wellness space. In FY 2025–26, the company achieved a turnover of about ₹136.1 billion (around USD 1.5 billion) through its strong presence in India and select international markets. Its products reach a vast consumer base, touching the lives of roughly one in every three Indians.
Marico’s portfolio includes well-known brands such as Parachute, Saffola, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Set Wet, Livon, Beardo, Just Herbs, True Elements, Plix, and Cosmix, among others. Internationally, its consumer business contributes around 24% of total revenue, supported by brands like HairCode, Fiancée, Purité de Prôvence, Ôliv, Caivil, Hercules, and Isoplus, strengthening its global footprint in multiple markets.
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