FMCG-major Marico Ltd on May 2 reported 8% increase in net profit at Rs 343 crore for the quarter ended March 31, 2025, helped by resilient rural demand and premiumisation. It reported net profit of Rs 318 crore in the same period last year.
The company's consolidated revenue rose 20 per cent to Rs 2,730 crore in the January to March quarter. The firm declared final dividend of Rs 7 per share for FY25.
India business profit lifted 42 per cent to Rs 325 crore, while revenue from operates grew 14 per cent to Rs 1,870 crore from Rs 1,637 in the same quarter last year.India Q4 volume growth stood at 7 per cent YOY, broadly in line with other consumer goods companies.
Consolidated EBITDA margin was at 16.8 per cent, down 260 basis points YOY, while EBITDA rose 4 per cent to Rs 458 crore, according to the investor presentation. However, gross margin contracted by 300 bps YoY, primarily impacted by the rise in copra and vegetable oil prices, which was partly offset by pricing interventions in key portfolios, the company said.
During Q4, consumer sentiment remained stable amidst improving demand in rural and mixed trends among mass and premium urban segments, the company said.
Commodity inflation
Marico reported a 48% year-on-year increase in copra prices in FY25 — a key raw material in its coconut oil portfolio — which is expected to exert pressure on gross margins through the end of Q1 FY26. Parachute Rigids registered 1 per cent volume decline, witnessing transient sluggishness due to consumption titration(typical during hyperinflationary cycles) amidst steep increase in consumer pricing and the impact of ml-age reduction in select packs. . The brand logged 22% revenue growth, aided by pricing interventions taken during the year.
While copra prices are at unprecedented highs, moderation in prices is anticipated in the coming months, Marico said. It expects copra prices to normalise by the end of Q2 this year. Since Q1FY25, the company has taken 30 per cent price increase in its flagship coconout oil brand. Marico indicated that its dependence on copra as a profitability lever has reduced, and it remains relatively unconcerned about current price fluctuations. Parachute posted 2% volume growth and 13% revenue growth in FY25.
Value-Added Hair Oils grew by 1 per cent in value terms, led by steady performance in the mid and premium segments of the portfolio.
Its edible oil brand Saffola posted a low single-digit volume decline amidst elevated pricing in response to elevated vegetable price tables, but posted 26 per cent value growth.
Outlook
"We expect gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as promise of a healthy monsoon season. This will be further aided by our ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in our direct reach footprint under Project SETU," Marico said.
It sees India revenue share of the Foods and Premium Personal Care portfolios to expand to 25% by FY27 from 22% in FY25.
The company said it continues to scout for inorganic growth opportunities that can help consolidate its competitive position, expand its addressable market, or provide entry into new geographies.
Looking ahead to FY26, Marico expects to sustain double-digit revenue and operating profit growth, supported by consistent outperformance in core categories, rising contribution from Foods and Premium Personal Care, and the scaling up of its digital-first brands. With improved leverage and portfolio premiumisation across markets, the company also anticipates operating margins to improve gradually over the medium term.
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