Marico gains 2%, stock hits record high in tepid market, outruns FMCG index

With input cost easing and margin pressure subsiding, the management expects progressive improvement in operating profit growth rates over the coming quarters.

Marico share price today

 

Share price of Marico hit a record high of ₹792.90, gaining 2.4 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market. Marico stock price of the edible oil company surpassed its previous high of ₹780 touched on January 6, 2026. In comparison, the BSE Sensex was down 0.17 per cent and the BSE Fast Moving Consumer Goods (FMCG) index was up 0.60 per cent at 11:28 AM.

 

Meanwhile, Marico was trading higher for the third straight day - up 4.4 per cent during the period. Since February 1, 2026, the stock has rallied 10 per cent.  READ LATEST STOCK MARKET UPDATES LIVE

 

Why did Marico outperform Sensex, FMCG index?

 

Marico delivered a strong and resilient performance in the December 2025 quarter (Q3FY26), with both the India and international businesses progressing well in a steady operating environment.

 

Marico’s consolidated revenue reported 27 per cent year-on-year (YoY) growth to ₹3,527 crore. Volume growth sustained high-single digit volume growth of 8 per cent in India business in Q3FY26. India business revenues witnessed 24 per cent YoY growth to ₹2,461 crore registering 3rd consecutive quarter of 20 per cent+ growth aided by sharp price hikes in parachute (+51 per cent YoY).

 

Overall, with lower input cost environment and improving premiumisation in the portfolio, the management expects EBITDA to grow in mid-teens and margin to expand by 150-200 bps over the near- to medium-term. The management has maintained 25 per cent consolidated revenue growth guidance in FY26 and also expects strong volume growth momentum in the India business to sustain even though pricing growth gradually moderates in the quarters ahead.  ALSO READ | Britannia sees 'Darvas Box'; VBL, Marico show reversal signs, says analyst

 

The company’s management in the Q3 earnings conference call said that they will remain sharply focused on execution, strengthening franchises and driving sustainable volume-led growth. In India, Marico expects to drive improved trajectory in the core portfolio while driving the profitable scale-up of foods and digital-first businesses. The management aims to sustain the volume growth momentum even as pricing growth is likely to moderate over the course of the next few quarters. With input cost easing and margin pressure subsiding, they expect progressive improvement in operating profit growth rates over the coming quarters.

 

Marico has significant local presence in Bangladesh, South East Asia, Middle East, Egypt and South Africa.

BNP Paribas India view on Marico

 

Marico derived 75 per cent of its FY25 revenue from India, with the remaining 25 per cent from its international business, of which Bangladesh is the largest. Parachute Coconut Oil is Marico's highest-selling product and accounted for 36 per cent of domestic sales in FY25.

 

Coconut oil is a mature category, but Marico continues to gain market share from unorganised players. Value added hair oil (VAHO) accounted for 18-22 per cent of sales in recent years, with a low-single-digit CAGR in the last five years. Marico has seen an improvement in VAHO performance in H1FY26, which it expects to sustain. The performance of its Saffola edible oil business is linked to edible oil prices, which have been volatile recently. Marico's food business and D2C brands have become important revenue growth drivers in recent years, accounting for 22 per cent of its sales in FY25.

 

Marico is now getting into a Copra downcycle during which its growth as well as market share has historically been impacted by deflation and competition. This keeps us cautious on the name despite strong recent performance, analysts at BNP Paribas India said. Over the medium term, the brokerage firm sees moderate revenue growth potential in the business, with a high dependence on new initiatives such as food and D2C to drive growth. The brokerage firm has a ‘Neutral’ rating on Marico with a target price of ₹835 per share.  ==========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.