Marico expects high single-digit volume growth in Q3 India business

FMCG major Marico said its domestic business is expected to post high single-digit volume growth in the October-December quarter, with consolidated revenue growth in the high twenties

Marico expects to report high single-digit volume growth in the October-December quarter of financial year 2026 (FY26) in its domestic business and has witnessed a slight improvement on a sequential basis, it said in its quarterly update ahead of its results.

 

Its consolidated revenue growth on a year-on-year basis stood in the high twenties.

 

“The sector witnessed steady demand trends during the quarter. We remain optimistic about a gradual improvement in consumption in the quarters ahead, supported by easing inflation, lower GST rates driving affordability, MSP hikes, and a healthy crop sowing season,” the company said in its update.

 

Parachute continued to perform amid elevated input cost and pricing conditions, it added. “The brand recorded a marginal volume decline but was in positive territory after normalising for ml-age reductions in lieu of price increases.”

 

Saffola Oils saw a muted quarter, while value added hair oils grew in the twenties.

 

“We expect to maintain the double-digit growth momentum in this franchise over the near and medium term, supported by the strategic focus in the mid and premium segments of the portfolio, enhanced direct reach driven by Project SETU and the recent GST rate rationalisation,” the update said.

 

The food segment, on the other hand, witnessed a benign quarter and is expected to revert to accelerated growth over the next two quarters, while its premium personal care (including digital-first brands) continued to scale ahead of aspirations, the company said.

 

Marico’s international business maintained its strong momentum with constant currency growth in the early twenties, as Bangladesh led from the front, while Vietnam and South Africa bounced back to double-digit growth on the back of targeted initiatives, the update added.

 

Cost of copra, which is its main input, witnessed around a 30 per cent price correction and is expected to exhibit a downward bias in the months ahead, followed by the flush season, the company noted.

 

“We anticipate further gross margin improvement in the coming quarters, driven by the lagged pass-through of lower copra costs. We sustained brand-building investments to continually strengthen the long-term equity of our franchises and drive accelerated portfolio diversification. In the given context, we expect operating profit growth to touch double digits on a year-on-year basis,” Marico said. 

The maker of Parachute also said that it maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, which will be enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth across markets.