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Business Standard
07-05-2025
- Business
- Business Standard
Marico hits record high, zooms 21% in 2 months; analysts see more upside
Share price of Marico today Shares of Marico hit a record high of ₹ 737.40, gaining 2.4 per cent on the BSE in Wednesday's intra-day trade amid heavy volumes owing to earnings improvement. The stock price of the edible oil company surpassed its previous high of ₹ 736.10 touched on February 1, 2025. In the past one month, the stock has rallied 11 per cent, and, in the past two months it surged 21 per cent. At 02:55 pm; Marico was trading 2 per cent higher at ₹ 735.90, as compared to the 0.1 per cent gain on the BSE Sensex. The average trading volumes on the counter jumped over three-fold. A combined 3.2 million equity shares changed hands on the NSE and BSE. Marico Q4 results Homegrown FMCG firm Marico on Friday, May 2, 2025 reported a 7.81 per cent rise in consolidated net profit at ₹ 345 crore in the March 2025 quarter (Q4FY25), driven by volume and revenue growth in India, along with robust international business. Consolidated revenue from operations grew 20 per cent year-on-year at ₹ 2,730 crore, with underlying volume growth of 7 per cent in the India business and constant currency growth (CCG) of 16 per cent in the international business. India volume and revenue growth were at 14 quarter high. Outlook With retail and food inflation moderating, it bodes well for the overall consumption in FY26. Government schemes, rise in MSPs and healthy monsoon forecasts to aid ongoing rural recovery. Marico expects gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as the promise of a healthy monsoon season. This will be further aided by our ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in its direct reach footprint under Project SETU. Despite transient input cost headwinds in the near term, the company expects to sustain the double-digit revenue growth momentum and will strive to deliver double-digit operating profit growth in FY26. Brokerage view – Yes Securities Volume pick-up in domestic core, strong price growth in Parachute & Saffola edible oils in H1FY26, likely bottoming-out of value added hair oils (VAHO), distribution expansion through Project SETU, continued strong momentum in newer domestic businesses and healthy International business CCG should lead to double -digit topline growth in FY26. Based on ~50x multiple on FY27E EPS the brokerage firm said that they now get a slightly revised target price of ₹ 830 (₹ 800 earlier). Brokerage view – Elara Capital The brokerage firm maintains a constructive view on Marico, underpinned by its strong medium term potential to deliver double-digit sales growth. This optimism is driven by a combination of strategic price increases, enhanced direct distribution capabilities, and robust momentum in its foods and premium personal care segments. 'Additionally, as its new business verticals continue to scale, we expect upside to margin in the long term, further reinforcing our positive stance. We reiterate our Accumulate rating with a higher target price of ₹ 785 on 50x FY27E P/E,' analysts said in the Q4 result update. About Marico Marico is one of India's leading consumer goods companies operating in the global beauty and wellness categories. In FY 2023-24, Marico recorded a turnover of $1.2 billion through its products sold in India and chosen markets in Asia and Africa. Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs, True Elements and Plix. The international consumer products portfolio contributes to about 26 per cent of the Group's revenue, with brands like Parachute, Parachute Advansed, HairCode, Fiancée, Purité de Prôvence, Ôliv, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Thuan Phat and Isoplus.
Mint
07-05-2025
- Business
- Mint
Marico's margin pain will linger for some time
Marico Ltd's performance in the March quarter (Q4FY25) has sharpened the market's focus on its pivot to newer growth engines, which have done well even as margin headwinds loom. While the results were largely in line with expectations, Marico's roadmap for recovery and its push to revive core volumes is encouraging. Consolidated revenue increased 20% year-on-year to ₹ 2,730 crore in Q4. India sales, which contribute 75% of the total, jumped 23% on the back of sustained pricing actions and 7% volume growth. International markets saw constant-currency growth of 16%, led by a standout 47% jump in the Middle East and North Africa (MENA), 11% in Bangladesh, and 13% in South Africa. Also read: Another solid year for Coforge given strong deal pipeline? Yes, but… The story behind the headline numbers is telling: nearly all of the volume uptick came from the newer foods and premium personal care segments, while Marico's core portfolio—Parachute, Saffola, and VAHO—continued to stagnate, clocking low-single-digit declines. Value growth in foods was a robust 44% last quarter, driven by strong traction in Saffola Oats and new launches in health foods. The digital-first portfolio, comprising Beardo, Just Herbs and the personal care portfolio of Plix, exited FY25 at an annual revenue run-rate (ARR) of about ₹ 750 crore. Beardo has grown about fold-fold since FY21 and Just Herbs revenues crossed ₹ 100 crore. Management is aiming to grow the digital portfolio to ₹ 1,000 crore ARR in FY26. This is keeping investors interested. Foods and premium personal care now account for 22% of India revenue and are on track to hit 25% by FY27. Project SETU, Marico's distribution push, aims to expand direct reach to 1.5 million outlets by FY27 and is seen as instrumental in boosting volume growth. Management has reiterated its guidance for double-digit revenue and Ebitda growth in FY26, backed by strong execution across both new and core categories. Also read: Can M&M keep its pace in FY26? As such, volume recovery in the core categories—particularly Parachute and Saffola—is another key theme. After a few tepid quarters marked by steep price hikes and 'ml-age' cuts (grammage reductions), the company sees green shoots emerging. Optimism comes from easing copra costs, the fading impact of price hikes, weaker regional rivals, and early gains from Project SETU, with rural demand poised to lend further support. As prices stabilise, volumes are expected to pick up from Q2FY26. Profit margins are a weak spot, though. Gross margin slipped 300 basis points (bps) year-on-year to 48.6%. Ebitda margin shrank 236 bps to 16.8%—the lowest in two years—as copra and vegetable oil prices stayed stubbornly high. Ad spends, too, shot up 35% as Marico continued to invest in its brands. 'Marico has navigated the inflation cycle well by demonstrating strong pricing power in core & also has other margin levers (margin expansion in foods/D2C & some recovery in VAHO) to cushion the impact on profitability," said JM Financial Institutional Securities. Also read: Prolonged uncertainty awaits JSW Steel after court quashes BPSL resolution plan Copra, a key input for the company, pinched margins for much of FY25 and is expected to stabilise from Q2FY26, setting the stage for a margin recovery. To offset sustained cost pressure, Marico undertook another round of price hikes—about 8-9% in Q1FY26—marking its third increase in the cycle. PL Capital analysts expect margins to remain under pressure until H1FY26 even as improved profits in foods and B2C provide some respite. Marico stock's rich valuation of about 50 times estimated FY26 earnings, as per Bloomberg data, demands flawless execution. With foods and digital brands growing, and margin recovery expected in the medium-term, the market seems patient, but sustained delivery and lower costs are key to holding that trust.
Business Standard
05-05-2025
- Business
- Business Standard
Marico gains after Q4 PAT rises 8% YoY to Rs 343 cr
Marico rallied 3.81% to Rs 724.10 after the company reported a 7.86% jump in consolidated net profit to Rs 343 crore in Q4 FY25 as compared with Rs 318 crore in Q4 FY24. Revenue from operations increased 19.84% to Rs 2,730 crore during the quarter as compared with Rs 2,278 crore in Q4 FY24, with underlying volume growth of 7% in the India business and constant currency growth of 16% in the international business. Profit before tax (PBT) rose 10.53% YoY to Rs 441 crore in Q4 FY25. EBITDA stood at Rs 458 crore, recording growth of 4% YoY. EBITDA margin fell 260 bps to 16.8% in Q4 FY25. During Q4, consumer sentiment remained stable amidst improving demand in rural and mixed trends among mass and premium urban segments. Both HPC and Foods segments exhibited steady growth vis-vis the preceding quarter. India revenues stood at 2,068 crore, up 23% YoY, aided by price hikes in core portfolios in response to elevated input costs. Alternate channels continued to gain salience vis-vis General Trade. On international business front, Bangladesh sustained its strong momentum, posting double-digit constant currency growth. Vietnam was muted amidst sluggishness in some of the key categories. MENA and South Africa continued their high-paced growth trajectory. The business charted a resilient topline and profitability performance despite the impact of currency headwinds in key markets (translating to ~2% impact on consolidated EBITDA in FY25). Gross margin contracted by ~300 bps YoY, primarily impacted by the rise in copra and vegetable oil prices, which was partly offset by pricing interventions in key portfolios. A&P spends were up 35% YoY in Q4. On the outlook front, the company expects gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as promise of a healthy monsoon season. This will be further aided by its ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in its direct reach footprint under Project SETU. The company aims to grow Foods at 25%+ CAGR to around 8x of FY20 revenues (~2x of FY24 revenues) in FY27. The Digital-first portfolio clocked ARR of Rs 750 crore on exit basis in FY25, The company expects to scale this portfolio to ~2.5x of FY24 ARR (earlier ~2x of FY24 ARR) in FY27. Consequently, it expects the India revenue share of the foods and premium personal care portfolios to expand to ~25% by FY27. The company expects gradual improvement in gross and operating margins of the Food portfolio as we scale up over the medium term. Among Digital-first brands, Beardo closed in on double-digit EBITDA margin this year. Plix delivered low single digit EBITDA margin this year. It aims to replicate this playbook and achieve double-digit EBITDA margin in the portfolio in FY27. The company aims to expand into premium personal care categories such shampoos, skin care, hair styling/ care (ex-hair oils) and baby care. These portfolios have scaled at 24% CAGR over FY21-25 period and it aims to deliver 25%+ growth in the medium term. We will continue to invest aggressively towards diversifying the portfolio, expanding the total addressable market and driving market share gains in each of the markets. We aim to maintain the double-digit constant currency growth momentum in the International business over the medium term, the company added in exchange filing. Despite transient input cost headwinds in the near term, the FMCG company expects to sustain the double-digit revenue growth momentum and will strive to deliver double-digit operating profit growth in FY26. It also expects operating margin to inch up over the medium term with leverage benefits as well as premiumisation of the portfolios across both the India and International businesses. Saugata Gupta, MD & CEO commented, said, The fiscal year 2024-25 has closed on a momentous note with consolidated revenues crossing the 10,000 cr. mark. As set out at the start of the year, we have met our double-digit revenue growth aspiration, backed by top quartile volume growth in the India business and robust growth in the International business. While the core portfolio continued to garner market share and penetration gains, the scale-up momentum in Foods and Digital-first brands continued to have a markedly positive impact on topline and bottomline growth. In the International business, we have made visible strides towards building presence in premium personal care categories across markets, which is leading to broad-basing of the business. While we expect elevated input costs to be transient headwinds in the near term, we remain focused on leveraging the building blocks in place to deliver industry leading growth in FY26. Meanwhile the companys board recommended final dividend of Rs 7 per equity share of Re 1 each, subject to approval of shareholders at the ensuing 37th Annual General Meeting (AGM). The record date was fixed as Friday, 1 August 2025. The said dividend, if approved by shareholders will be paid on or before Sunday, September 7, 2025. 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.
Business Standard
03-05-2025
- Business
- Business Standard
Marico Q4 PAT rises 8% YoY to Rs 343 cr
Marico reported a 7.86% jump in consolidated net profit to Rs 343 crore in Q4 FY25 as compared with Rs 318 crore in Q4 FY24. Revenue from operations increased 19.84% to Rs 2,730 crore during the quarter as compared with Rs 2,278 crore in Q4 FY24, with underlying volume growth of 7% in the India business and constant currency growth of 16% in the international business. Profit before tax (PBT) rose 10.53% YoY to Rs 441 crore in Q4 FY25. EBITDA stood at Rs 458 crore, recording growth of 4% YoY. EBITDA margin fell 260 bps to 16.8% in Q4 FY25. During Q4, consumer sentiment remained stable amidst improving demand in rural and mixed trends among mass and premium urban segments. Both HPC and Foods segments exhibited steady growth vis-vis the preceding quarter. India revenues stood at 2,068 crore, up 23% YoY, aided by price hikes in core portfolios in response to elevated input costs. Alternate channels continued to gain salience vis-vis General Trade. On international business front, Bangladesh sustained its strong momentum, posting double-digit constant currency growth. Vietnam was muted amidst sluggishness in some of the key categories. MENA and South Africa continued their high-paced growth trajectory. The business charted a resilient topline and profitability performance despite the impact of currency headwinds in key markets (translating to ~2% impact on consolidated EBITDA in FY25). Gross margin contracted by ~300 bps YoY, primarily impacted by the rise in copra and vegetable oil prices, which was partly offset by pricing interventions in key portfolios. A&P spends were up 35% YoY in Q4. On the outlook front, the company expects gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as promise of a healthy monsoon season. This will be further aided by its ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in its direct reach footprint under Project SETU. The company aims to grow Foods at 25%+ CAGR to around 8x of FY20 revenues (~2x of FY24 revenues) in FY27. The Digital-first portfolio clocked ARR of Rs 750 crore on exit basis in FY25, The company expects to scale this portfolio to ~2.5x of FY24 ARR (earlier ~2x of FY24 ARR) in FY27. Consequently, it expects the India revenue share of the foods and premium personal care portfolios to expand to ~25% by FY27. The company expects gradual improvement in gross and operating margins of the Food portfolio as we scale up over the medium term. Among Digital-first brands, Beardo closed in on double-digit EBITDA margin this year. Plix delivered low single digit EBITDA margin this year. We aim to replicate this playbook and achieve double-digit EBITDA margin in the portfolio in FY27. The company aims to expand into premium personal care categories such shampoos, skin care, hair styling/ care (ex-hair oils) and baby care. These portfolios have scaled at 24% CAGR over FY21-25 period and we aim to deliver 25%+ growth in the medium term. We will continue to invest aggressively towards diversifying the portfolio, expanding the total addressable market and driving market share gains in each of the markets. We aim to maintain the double-digit constant currency growth momentum in the International business over the medium term, the company added in exchange filing. Despite transient input cost headwinds in the near term, the FMCG company expects to sustain the double-digit revenue growth momentum and will strive to deliver double-digit operating profit growth in FY26. It also expects operating margin to inch up over the medium term with leverage benefits as well as premiumisation of the portfolios across both the India and International businesses. Saugata Gupta, MD & CEO commented, said, The fiscal year 2024-25 has closed on a momentous note with consolidated revenues crossing the 10,000 cr. mark. As set out at the start of the year, we have met our double-digit revenue growth aspiration, backed by top quartile volume growth in the India business and robust growth in the International business. While the core portfolio continued to garner market share and penetration gains, the scale-up momentum in Foods and Digital-first brands continued to have a markedly positive impact on topline and bottomline growth. In the International business, we have made visible strides towards building presence in premium personal care categories across markets, which is leading to broad-basing of the business. While we expect elevated input costs to be transient headwinds in the near term, we remain focused on leveraging the building blocks in place to deliver industry leading growth in FY26. Meanwhile the companys board recommended final dividend of Rs 7 per equity share of Re 1 each, subject to approval of shareholders at the ensuing 37th Annual General Meeting (AGM). The record date was fixed as Friday, 1 August 2025. The said dividend, if approved by shareholders will be paid on or before Sunday, September 7, 2025. 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. The counter declined 1.77% to end at Rs 6997.50 on the BSE.
Mint
02-05-2025
- Business
- Mint
Marico Q4 Results: Profit rises 8% to ₹343 crore, volume growth beats estimates; dividend declared
Marico, a leading player in India's consumer products sector with a focus on hair and wellness, announced its March quarter results post-market hours today, May 02, reporting a mixed performance. The company reported volume growth of 7% in its India business, which was higher than analyst estimates of 5–6%. It also reported constant currency growth of 16% in the international business. Consolidated and India revenue growth, as well as underlying volume growth in the India business, stood at a 14-quarter high, as per the company's earnings filing. The company stated that its India business continued to deliver sequential improvement in volume growth during the quarter. It witnessed the transient impact of hyperinflation and resultant steep price increases in core portfolios but maintained robust momentum in its new businesses. Offtakes remained strong, with 95% of the business gaining or sustaining market share and 80% gaining or sustaining penetration, both on a MAT basis. India's revenues stood at ₹ 2,068 crore, up 23% YoY, aided by price hikes in core portfolios in response to elevated input costs. The international business delivered another stellar quarter and closed ahead of the company's internal targets. However, gross margin contracted by 300 basis points YoY, primarily due to the rise in copra and vegetable oil prices, which was partly offset by pricing interventions in key portfolios. A&P spends were up 35% YoY in Q4 (and up 18% in FY25), in line with the company's strategic intent to continually strengthen its franchises and accelerate diversification. Consequently, EBITDA rose 4% to ₹ 458 crore, with EBITDA margin at 16.8%, down 260 basis points. Net profit increased 8% YoY to ₹ 343 crore. For FY25, revenue from operations stood at ₹ 10,831 crore, up 12% YoY, with underlying volume growth of 5% in the India business and constant currency growth of 14% in the international business. Profit for FY25 stood at ₹ 1,629 crore, marking a 10% YoY increase. At its meeting held on May 02, 2025, the Board of Directors recommended a final dividend of ₹ 7 per equity share of ₹ 1 each on its paid-up equity share capital of approximately ₹ 129.5 crore. Marico expects gradually improving growth trends in the core categories of its India business, supported by moderating retail and food inflation and the forecast of a healthy monsoon season. The company believes this will be further aided by its ongoing initiatives to support select General Trade (GT) channel partners and the transformative expansion of its direct reach footprint under Project SETU. Marico also said it continues to draw confidence from healthy offtakes, penetration, and market share gains in its key portfolios. It further stated that it remains focused on driving differential growth in its urban-centric and premium portfolios through organized retail and e-commerce channels.
