Marico shares surged over 8% on November 3, 2026, after Prabhudas Lilladher upgraded the stock to 'Buy' with a target of Rs 958. This follows strong Q2 FY27 results showing a 31% profit increase and 10% domestic volume growth. The brokerage highlighted improved profitability guidance, though investors are watching for potential raw material cost pressures.
Marico shares rallied over 8% on November 3, 2026, after brokerage firm Prabhudas Lilladher upgraded the stock to 'Buy' and raised its target price to Rs 958. The market reaction followed the company's recent financial update, which showed strong momentum across its core product categories. The revised target reflects increased confidence from the brokerage in the company’s ability to achieve its long-term financial milestones.
The upgrade comes after Marico released its financial results for the second quarter of the 2027 fiscal year. The company reported a 31% year-on-year rise in consolidated net profit, reaching Rs 550 crore. Revenue grew by 13% to Rs 3,897 crore, while the operating margin expanded by 200 basis points to 18.2%. This performance was largely supported by a 10% increase in domestic volume growth and a 13% rise in volume for its flagship Parachute brand, indicating resilient consumer demand.
Growth Strategy and Future Targets
Prabhudas Lilladher noted that Marico has advanced its revenue milestone target to 2029, which is a year earlier than previously projected. A central part of this strategy is the ongoing 'SETU 2.0' initiative. This program focuses on integrating artificial intelligence into the company's operations to refine its go-to-market strategy and expand the reach of its premium product lines. Following these results, the brokerage also raised its EBITDA growth guidance to the mid-twenties, signaling confidence in the company’s operational efficiency.
Monitoring Input Cost Risks
While the long-term outlook appears positive, market participants are also monitoring near-term risks. Analysts have pointed out that profit margins could face pressure from rising input costs. For instance, prices for copra have increased by 19% from recent lows. The company is also dealing with higher costs for raw materials such as high-density polyethylene (HDPE), liquid paraffin (LLP), and rice bran oil, which are essential for its packaging and manufacturing processes.
Moving forward, investors will likely track whether the company can pass on these cost increases to consumers or if they will impact margins in the coming quarters. Other factors that may influence future performance include the impact of monsoon distribution on rural demand and potential geopolitical factors affecting international supply chains. The ability of the management team to balance the expansion of premium products with effective cost management in a volatile commodity environment will remain a key monitorable.