Marico’s Q3 revenue grows in high twenties, Parachute and Saffola see muted volumes

Marico Ltd reported steady demand trends in the December quarter, with consolidated revenue growth in the high twenties on a year-on-year basis, even as parts of its domestic portfolio remained under pressure from pricing actions and elevated input costs, according to the company’s Q3 FY26 quarterly update.

Despite sustained brand-building investments, Marico expects operating profit growth to reach double digits year-on-year.

The FMCG major said underlying volume growth in its India business stayed in the high single digits, marking a slight sequential improvement. However, the quarter was not without stress points. Parachute, Marico’s largest brand, saw a marginal volume decline during the period, largely due to elevated copra prices and price increases taken earlier. The company said volumes turned positive after adjusting for ml-age reductions used to offset price hikes, indicating pressure on consumer affordability in key categories.

Saffola Oils also had a muted quarter as the impact of prior pricing actions played out. Vegetable oil prices continued to remain elevated, weighing on the oils portfolio and limiting near-term volume acceleration. Foods, another growth engine for the company, saw a benign performance in Q3, with Marico indicating that the segment is expected to revert to faster growth over the next two quarters.

In contrast, value-added hair oils emerged as a bright spot, growing in the twenties during the quarter. Marico said this franchise continues to benefit from sustained traction in mid and premium segments, aided by wider direct reach under Project SETU and recent GST rate rationalisation. Premium personal care, including digital-first brands, also continued to scale, though the company did not provide segment-level profitability details.

International operations remained a key growth driver, delivering constant currency growth in the early twenties. Bangladesh led performance, while Vietnam and South Africa returned to double-digit growth on the back of targeted initiatives, helping offset slower growth pockets in the domestic business.

On the cost front, Marico said copra prices have corrected nearly 30% from their highs and are expected to trend lower in the coming months, which could ease margin pressure. While gross margins bottomed out in the previous quarter, the company expects a sequential improvement in Q3 and further recovery in the coming quarters due to the lagged pass-through of lower copra costs. Crude oil derivatives remained benign, offering some relief, even as vegetable oil prices stayed high.

The company reiterated its medium-term focus on volume-led, profitable growth, supported by core brands and newer growth engines, while acknowledging that consumption recovery is likely to remain gradual.

Marico's share price today closed at ₹774.65, up by 2.23%.