Archive · 17 Nov 2025
Marico Expects Strong H2 Amidst Demand Recovery and Cost Relief
Marico, a company that makes products like Parachute oil and Saffola, is expecting a really good second half of the year.
They believe more people will buy their products because demand is getting back to normal after some small changes with taxes.
Even though it used to cost a lot more to make their products, the prices are now going down.
This helps them make more profit.
They are confident they will sell more items and make more money.
They also think they can improve how much profit they make over the next year.
Marico is focusing on selling more premium items and growing their online brands and food business.
Their international business is also doing okay, even with some challenges in different countries.
Marico anticipates revenue growth exceeding 25% in H2 due to stabilizing demand and lower input costs.
Demand has normalized across most categories following temporary disruptions caused by GST rate changes in late September and early October.
The company protected profitability despite a 100% rise in input costs and expects pricing to soften by March.
Marico is confident in achieving double-digit EBITDA growth in H2 and projects at least a 200 basis points margin improvement in the following year.
Growth is expected to be driven by international operations, value-added hair oils, food business, and premium personal care digital brands.
- Who
- Marico Ltd
- What
- Expects strong second-half performance with revenue growth over 25% and double-digit EBITDA growth, driven by stabilizing demand, lower input costs, and robust category performance.
- When
- Second half of the year (H2), with potential margin improvements by FY27, and demand stabilization noted after disruptions in late September and early October.
- Where
- India (Mumbai-based company, domestic categories, international operations in Bangladesh, Vietnam, Middle East, Africa)
- Why
- Stabilizing demand post-GST changes, decreasing input costs, strong performance in key categories like hair oils and food, and strategic focus on premium and digital brands.
Management Optimism
Potential Challenges
Demand Outlook
Management Optimism
Demand has stabilized across categories after a temporary disruption from GST rate changes, and is expected to remain steady.
Potential Challenges
Short-term disruptions related to GST rate changes caused headwinds in late September and early October.
Profitability and Margins
Management Optimism
Marico successfully protected profitability despite a 100% increase in input costs and expects pricing to soften by March with input prices down from their peak.
Potential Challenges
While input costs have decreased, they were significantly elevated, impacting EBITDA margins.
Growth Projections
Management Optimism
Management is 'extremely confident' of delivering over 25% top-line growth and double-digit EBITDA growth in H2, with potential for at least 200 bps margin improvement next year.
Potential Challenges
Margin improvement is contingent on raw material prices easing as expected.
- Company
- Marico Ltd
- Expected H2 Revenue Growth
- More than 25%
- Volume Growth (July-September 2025)
- 7%
- Input Cost Impact
- 100% increase previously, now down to 15-16% of peak
- EBITDA Growth Expectation
- Double-digit in H2
- Potential Margin Improvement
- At least 200 basis points next year
- Stock Performance (Past Year)
- Gained over 27%
- Market Capitalisation
- ₹98,837.80 crore
