Archive · 5 Aug 2025
Marico's Growth Prospects: Analysts Bullish Despite Margin Headwinds
Marico, a company known for products like Parachute oil, is doing well with new products and wants to make a lot more money.
They had good sales growth recently, especially in new food items.
The company is aiming for a revenue of ₹15,000 crore in next 2 years and is also expanding its digital-first businesses like Beardo.
However, the cost of some ingredients, like coconut oil, is going up, which makes it harder for them to make a profit.
Despite this, experts still think the company will grow.
Marico's Q1 FY26 saw a 9% volume growth driven by new franchises and recovery in edible oils.
Foods segment revenue grew 20% YoY, and the digital-first portfolio maintained growth.
Marico aims for ₹15,000 crore revenue in two years, ₹20,000 crore in five years.
Analysts are cautious about elevated copra prices, which impacted margins in Q1.
Brokerages remain bullish on growth targets, with buy ratings and increased target prices.
- Who
- Marico, analysts from Motilal Oswal and JM Financial.
- What
- Marico's financial performance, expansion plans, and analyst perspectives.
- When
- Q1 FY26 and the next two to five years.
- Where
- India and international markets.
- Why
- To assess Marico's growth potential and investment viability.
Margin Concerns
Growth Potential
Copra Prices Impact
Margin Concerns
Rising input costs, particularly copra, are negatively impacting EBITDA margins.
Growth Potential
Brokerages remain bullish on growth targets, with the expectation that margins will stabilize.
- Q1 FY26 Volume Growth
- 9%
- Foods Revenue Growth (YoY)
- 20%
- Digital-first ARR (Q1)
- ₹850 crore
- Copra Price Increase (YoY)
- 107%
- EBITDA Margin (Q1)
- 20.1%
- Target Revenue (2 years)
- ₹15,000 crore
Sources
Marico Q1 Results: Net profit up 9% YoY to ₹514 crore, revenue surges 23%; margins hit by cost pressure
Marico Q1 FY26: Profit rises 8.2%, revenue jumps 23% on strong India, overseas business
Marico Profit Increases 8.23% To ₹513 Crore In Q1
Stocks to Watch on Tuesday, August 5: Marico, Titagarh Rail Systems, Bharti Airtel, L&T, Ather Energy and more
Marico profit up 8.6% in Q1 FY26
Marico profit up 9%, but margins slip