Marico beats slowdown blues with 'steady' rural demand, 'stable' urban sentiment in Q3FY25

Marico said it will continue to focus on volume-led revenue growth, while staying watchful of margins in the near term.

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26 Aug, 2025 12:21

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Marico's third quarter business update shows the FMCG sector witnessed steady demand on the back of improving rural consumption, and stable sentiment in the urban category, the company said in an exchange filing on January 3.

The company posted a sequential uptick in volume growth for December quarter, and the consolidated business has posted 'mid-teen revenue growth' compared to a year ago. Marico added that it is on track to meet double-digit growth for the full year. The volume growth has been accompanied with 'sustained market share gains' across major franchises, Marico added.

Going forward, Marico said it will continue to focus on volume-led revenue growth, while staying watchful of margins in the near term.

Read More: DMart battles quick commerce, grows revenue by 17% on year to Rs 15,565 crore

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The Parachute Coconut Oil brand remained resilient amid rising input cost and pricing environment, though volume dipped on sequential basis. The hair oil brand clocked low teen revenue growth and announced another price hike in December as copra prices stayed firm.

Saffola Oil volumes remained steady despite pricing hikes in response to rise in vegetable oil prices with the brand posting high teen revenue growth.

Volumes in value-added hair oil segment fell marginally due to competitive pressure, though the trajectory in mid and premium segments remained healthy, helping in the recovery.

Marico's Foods and Digital-first brands continue to see strong growth momentum, said the company filing.

Read More: Dabur Q3 business update - Rural consumption continues to outpace urban

Rising input costs may result in a higher-than-anticipated margin contraction compared to a year ago, said Marico. This may be due to the management's focus on expansion of the consumer franchise, said the company. Marico said it may see a modest operating profit growth this quarter as a result of expansion, and investments in brand building.