Marico has released its Q1 FY27 business update, indicating a robust start to the financial year with double-digit underlying volume growth in India. The consumer goods company expects consolidated revenue to grow in early twenties for the quarter, driven by broad-based performance across its core, digital, and international businesses. Operating profit is anticipated to witness strong growth, supported by softening copra prices and robust business momentum. The strong operational performance has drawn positive coverage from major global brokerages, with HSBC, Nomura, and Goldman Sachs all initiating Buy ratings on the stock.

Analyst Ratings and Target Prices

Three leading global brokerages have issued Buy recommendations on Marico following the Q1 FY27 business update, reflecting broad confidence in the company's growth trajectory. The key details of each brokerage's rating are summarised below:

India Business: Volume Growth and Brand Performance

The India business accelerated its growth trajectory during Q1 FY27, delivering double-digit underlying volume growth and reaching a multi-quarter high. Parachute Coconut Oil delivered a robust performance with double-digit volume growth, marking its highest in several quarters. Saffola Oils recorded mid-single digit price-led revenue growth, though volumes declined due to the rationalisation of select variants to maintain threshold profitability. Value Added Hair Oils posted revenue growth in the twenties, bolstered by strategic focus on mid and premium segments and enhanced direct reach via Project SETU. Foods and Premium Personal Care, including digital-first brands, continued to scale up in line with the company's diversification aspirations.

International Business Trends

The international business maintained strong growth momentum with mid-teens constant currency growth. This performance was led by outperformance in Vietnam and MENA markets, alongside positive contributions from all other regions. Bangladesh experienced a transient moderation in growth due to pricing anniversarization and marginal demand softness amidst elevated inflation.

Input Costs and Profitability

Key input costs saw volatility during the quarter, with the cost of crude-linked derivatives and vegetable oils rising sharply. However, copra prices corrected meaningfully, down approximately 45% from peak levels, although they remain above historical averages. Consequently, gross margin is expected to improve sequentially. The company accelerated its investments in advertising and sales promotion (ASP) to strengthen brand equity and drive portfolio diversification. Overall, Marico expects strong operating profit growth driven by robust business expansion and the softening of copra prices.

The company remains optimistic about consumption trends while monitoring inflationary conditions and the impact of El Niño on the monsoon. Marico continues to aspire for sustainable and profitable volume-led growth over the medium term.

Marico witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 304,855 shares transacted at a price of ₹829.85 per share, aggregating to a total deal value of ₹25.30 crores.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Significance of the Transaction

Block trades are large-volume transactions typically executed by institutional investors or significant market participants, often conducted outside the regular order book to minimise market impact. The transaction involving approximately 304,855 shares of Marico at ₹829.85 per share, totalling ₹25.30 crores, represents a substantial single-window deal on the NSE.