Marico Sees High Single-Digit India Volume Growth in January-March; Margins Set to Improve

MaricoLtd. said underlying volume growth in its India business remained in high single digits during the December quarter, with a slight sequential improvement, supported by steady demand conditions.

Parachute continued to show resilience despite elevated input costs and pricing pressures. While the brand reported a marginal volume decline, volumes turned positive after adjusting for ml-age reductions implemented in place of price hikes. Saffola Oils had a muted quarter as earlier price increases were anniversarized, while value-added hair oils grew in the early twenties, maintaining strong momentum. The company expects double-digit growth in this segment to continue over the near and medium term, aided by a focus on mid and premium offerings, wider direct reach through Project SETU, and recent GST rate rationalisation.

The foods portfolio saw a benign quarter and is expected to return to faster growth over the next two quarters. Premium personal care, including digital-first brands, continued to scale in line with aspirations.

The international business maintained strong momentum, with constant currency growth in the early twenties. Bangladesh led performance, while Vietnam and South Africa returned to double-digit growth following targeted initiatives.

Consolidated revenue growth for the quarter stood in the high twenties on a year-on-year basis, keeping the company on track to meet its full-year guidance.

On the cost front, copra prices have corrected by about 30% from recent highs and are expected to trend lower in the coming months after the flush season. Vegetable oil prices remained elevated, while crude-linked derivatives were benign. As a result, Marico expects gross margins to improve sequentially after bottoming out in the previous quarter, with further expansion ahead driven by the lagged benefit of lower copra costs.

The company said it expects operating profit growth to reach double digits year-on-year.

Marico reiterated its medium-term goal of delivering sustainable, profitable, volume-led growth, supported by stronger brand equity across core franchises and the scaling up of new growth engines across markets.