Marico Limited reported 26% revenue growth in FY26, driven by volume recovery in its flagship Parachute brand. The company aims for high-single-digit volume growth in India and double-digit revenue expansion in FY27. Investors are closely tracking how price reductions on hair oils and its expanding digital-first portfolio influence future profit margins.
Marico Limited finished fiscal year 2026 with a 26% increase in revenue, a performance that surpassed the general growth trend seen among many other fast-moving consumer goods (FMCG) companies. While revenue saw strong growth, the company’s profit after tax (APAT) grew by 11% during the same period. This difference indicates that while the top-line revenue expanded significantly, higher costs or operational spending influenced the final bottom-line profitability.
Volume Recovery and Pricing Strategy
A major factor behind this performance was the volume recovery for the Parachute brand. The company benefited from a significant drop in raw material costs, specifically copra prices, which fell by approximately 45% from their previous highs. Taking advantage of this, Marico lowered product prices by 15-20%. This strategy proved effective, helping the brand achieve double-digit volume growth in the first quarter of fiscal year 2027. Additionally, the value-added hair oil segment grew by about 20% in FY26, providing another stable source of income. For the Saffola oil brand, the company is now prioritizing ways to improve its profit margins rather than focusing solely on volume.
Digital Expansion and International Risk Management
Marico is working to grow its digital-first product portfolio, targeting double-digit EBITDA margins—a measure of operational profitability before interest and taxes—by the end of fiscal year 2027. The company expects these margins to improve further toward the teens by 2030. Internationally, the company is actively working to reduce its reliance on any single market. For instance, the revenue share from Bangladesh has dropped from 50% in FY20 to 45% in FY26. The company intends to lower this to 35% by 2030 to spread its geographical risks.
Financial Context and Future Outlook
Looking ahead, the company has provided a positive forecast, targeting high-single-digit volume growth within India and double-digit growth in consolidated revenue for the upcoming year. It also expects EBITDA to grow in the high teens. Investors should note that these projections depend on maintaining demand for its core hair care products and the successful execution of its digital brand strategy. The cost of raw materials remains a key monitorable, as any sudden increase in commodity prices could force the company to reverse its recent price cuts, which might then impact volume growth. Investors may also track how efficiently the company manages the shift in its international revenue mix and whether the digital portfolio can consistently deliver the expected improvements in operational margins.