Marico Aims Double-Digit Growth in India Business from Next Quarter: MD Saugata Gupta

Marico expects double-digit growth in India business from next quarter, driven by core franchises and new business expansion. The company aims for a revenue growth of around 25% this year, led by pricing actions. Its international business is expected to deliver mid-teens growth in constant currency this fiscal. The FMCG industry is expected to record better volume growth in FY26 than FY25, led by urban demand recovery and steady rural growth.

Marico, a leading consumer products company in the global beauty and wellness space, reported robust financial performance in Q1 FY26. The company's consolidated net profit climbed 8.62% year-over-year (YoY) to Rs 504 crore, adding 1.92% to its stock price, which closed at Rs 724.05 [1].

Revenue from operations surged 23.31% YoY to Rs 3,259 crore, driven by a 9% growth in the India business and a 19% growth in international markets. The India business reported a 27% YoY revenue growth, boosted by price hikes and strong off-take growth. The international business, particularly in MENA and Bangladesh, demonstrated resilience, with growth rates of 42% and 17% respectively in constant currency terms [1].

Marico's profit before tax (PBT) increased 8.43% to Rs 656 crore, and EBITDA rose 5% to Rs 655 crore. However, the EBITDA margin contracted by 360 bps to 20.1% due to higher input costs. The company expects a gradual uptick in overall demand patterns in the quarters ahead, supported by easing inflation levels and favorable monsoon conditions [1].

Looking ahead, Marico anticipates double-digit growth in its India business from the next quarter, driven by core franchises and new business expansion. The company aims for a revenue growth of around 25% this year, led by pricing actions. Its international business is expected to deliver mid-teens growth in constant currency this fiscal [2].

The FMCG industry is expected to record better volume growth in FY26 than FY25, driven by urban demand recovery and steady rural growth. Marico's strategic acquisitions and investments in digital platforms, such as Hudson Fusion, are poised to support its growth trajectory and operational efficiency [2].

References:
[1] https://www.business-standard.com/markets/capital-market-news/marico-gains-after-q1-pat-climbs-9-yoy-to-rs-504-cr-125080400974_1.html
[2] https://www.ainvest.com/news/hudson-rpo-earnings-call-conflicting-insights-regional-performance-acquisition-strategy-growth-prospects-2508/