Improving trends in rural and stable urban sentiment, expect gradual improvement : Marico Q1 FY26 update

The company, in its quarter update, stated that gross margins are expected to be under pressure on a high base during the quarter

Fast-Moving Consumer Goods (FMCG) maker Marico Ltd stated that with consistent demand patterns marked by improving trends in rural markets and steady urban sentiment, it expects gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus.

During the quarter, the company’s underlying volume growth in the India business continued to improve sequentially to reach a multi-quarter high, driven by positive trends in the core franchises and continuous scale-up of new businesses.

Marico stated that it maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term.

Gross margins

The company, in its quarter update, stated that gross margins are expected to be under pressure on a high base during the quarter.

“Among key inputs, copra prices continued to witness sequential inflation, which was heightened by unseasonal rainfall patterns. Vegetable oil prices eased following the cut in import duty, while crude oil derivatives remained rangebound. Owing to the above, gross margin is expected to be under incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect. We expect gross margin pressures to ease from the second half of this fiscal year. Despite the input cost push, we maintained brand-building investments in line with our strategic intent to strengthen the long-term equity of our franchises and accelerate portfolio diversification. In the given context, we expect modest operating profit growth on a year-on-year basis,” the company informed the stock exchanges.

Parachute dips

Parachute witnessed a marginal dip in volumes on unprecedented hyperinflationary input cost and pricing conditions. Saffola Oils posted a healthy performance with revenue growth in the high twenties, backed by mid-single-digit volume growth, while Value Added Hair Oils grew in low double digits, witnessing a considerable step-up in the pace of recovery on the back of sustained traction in the mid and premium segments of the portfolio.

The International business delivered high-teens constant currency growth, driven by broad-based growth across most markets. Bangladesh continued to exhibit visible resilience with high-teen constant currency growth. Consolidated revenue growth on a year-on-year basis stood in the low twenties, marking a strong start towards delivering double-digit growth on a full-year basis, underpinned by the strengthening volume trajectory.

Published on July 3, 2025