Marico expects 'high 20s' increase in consolidated revenue in Q3 with margin improvement

New Delhi, Jan 2 (PTI) Home-grown FMCG player Marico on Friday said it has witnessed "steady demand" trends during the December quarter and remain "optimistic" about a gradual improvement in consumption in the quarters ahead.

This is supported by easing inflation, lower GST rates driving affordability, MSP hikes, and a healthy crop sowing season, Marico said in its December quarter updates to the bourses.

"During the quarter, underlying volume growth in the India business remained in high single digits, while marking a slight improvement on a sequential basis," it said.

"Consolidated revenue growth on a year-on-year basis stood in the high twenties, poised to achieve our full year aspiration," Marico said.

Its product Parachute continued to demonstrate stellar resilience amid elevated input cost and pricing conditions as the brand recorded a marginal volume "decline".

However, it was in positive territory after normalising for ml-age reductions in lieu of price increases.

While its Saffola Oils had a muted quarter, 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 rationalization," Marico said.

Its foods segment had a "benign quarter", however, it is expected to revert to accelerated growth over the next two quarters, while premium personal care (including digital-first brands) continued to scale ahead of aspirations.

Marico's international business maintained its momentum with growth in the early-20s on constant currency terms.

"...Bangladesh led from the front, while Vietnam and South Africa bounced back to double-digit growth on the back of targeted initiatives," it said.

Over the commodity prices, Marico said among key inputs, copra prices have corrected 30 per cent from the highs and are expected to exhibit a downward bias in the months ahead, followed by the flush season.  Marico anticipates 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," it said.

Marico Q3 updates provide an overall summary of the operating performance and demand trends witnessed during the quarter ended September 2025.  "A detailed information ipdate will follow this once the board approves the financial results for Q3 FY26," it said. PTI KRH TRB