Motilal Oswal maintains "buy" on Marico as it sees double-digit revenue growth in FY26

So far this year, Marico’s shares have slipped by 3 percent

Shares of Marico gained by a percent to Rs 632 apiece on March 26 after Motilal Oswal reaffirmed its "buy" rating on the stock, setting a target price of Rs 775—indicating an upside potential of over 20 percent. Analysts believe the FMCG giant is making strategic moves toward portfolio diversification, projecting an 11 percent revenue CAGR and a 13 percent EBITDA CAGR over FY25-27E.

So far this year, Marico’s shares have slipped by 3 percent, lagging behind the benchmark Nifty 50, which has edged down just 0.3 percent.

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Motilal Oswal analysts anticipate sustained double-digit growth, driven by a combination of volume expansion and pricing strategies. They foresee a rare instance of double-digit revenue growth in FY26. "New-age businesses are expected to fuel growth, with the foods segment projected to post a robust 20-25 percent CAGR, while the innovation pipeline remains strong," the brokerage firm noted.

Among Marico’s key offerings, Parachute Coconut Oil is expected to grow at a steady 5-7 percent, while Saffola Foods is on track to contribute more than 50 percent of the Saffola franchise’s revenue within the next 4-5 years. "We anticipate stable demand for Parachute and Saffola despite price hikes of 15-20 percent," analysts added.

Meanwhile, emerging brands like Plix and Beardo are also making promising strides. However, analysts caution that elevated input costs could put pressure on margins in the short term, though the long-term outlook remains positive.

In Q3, Marico posted a 4.2 percent year-on-year increase in consolidated net profit, reaching Rs 399 crore, while revenue surged 15 percent to Rs 2,794 crore. The FMCG major benefited from higher sales volumes across domestic and international markets but grappled with margin compression due to rising input costs.

Marico’s EBITDA climbed 4 percent year-on-year to Rs 533 crore, though the EBITDA margin contracted by 210 basis points to 19.1 percent. The company attributed this decline to soaring raw material costs, particularly a sharp uptick in copra and vegetable oil prices.

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