Marico top-line outlook strong but margin worries weigh on profits

Fast-moving consumer goods (FMCG) major Marico delivered a strong performance in the first quarter of 2025-26 (Q1FY26). While margins were impacted by raw material inflation, most of its key categories delivered, helping it outperform its peers on the volume and revenue fronts.

 

Despite the pressures on profitability, most brokerages expect the company to post a double-digit revenue growth and a gradual easing of cost inflation towards the end of the year. Given the strong prospects for its categories and double-digit earnings growth over the next couple of years, premium valuations are expected to sustain going ahead.

 

Led by domestic volumes,