Marico Limited reported robust operating performance for the quarter ended September 30, 2026, with domestic volume growth touching double digits. The company expects consolidated revenue to grow in double digits and operating profit to increase in the mid-twenties percent year-on-year.

The India business maintained strong momentum, driven by Parachute Coconut Oil which accelerated to early teens volume growth. Value Added Hair Oils delivered its sixth consecutive quarter of stellar growth, reaching twenties percent growth. Saffola Oils recorded mid-single digit price-led growth, though volumes declined as the company rationalized supply to maintain profitability thresholds.

International operations contributed significantly to the top line, with constant currency growth in the teens led by Vietnam, the Middle East, and South Africa. Bangladesh saw marginal sequential improvement despite lapping a high base amid elevated inflation. The overseas portfolio continues to support diversification efforts alongside digital-first brands and premium personal care segments.

Input Costs and Margin Dynamics

The company highlighted a favorable environment for gross margins due to input cost trends. Copra prices remained rangebound at approximately 35% below peak levels, providing a significant tailwind. Conversely, the cost of crude-linked derivatives elevated further during the period. Management expects strong acceleration in gross margin on a year-on-year basis, aided by this copra price advantage and a favourable portfolio mix.

What the Numbers Show

A divergence exists between pricing power and volume dynamics across categories. While Saffola Oils prioritized profitability through price-led growth at the expense of volume, Parachute and Value Added Hair Oils achieved significant volume expansion. This suggests a bifurcated strategy where core high-equity brands drive volume, while other segments manage margin thresholds. Additionally, the expectation of mid-twenties operating profit growth against double-digit revenue growth indicates substantial operating leverage, likely driven by the copra price tailwinds mentioned in the update.

The company remains optimistic on consumption trends despite volatile operating conditions. With a strong first half, Marico is likely to surpass near-term guidance across key financial parameters. Investments in brand building and growth initiatives increased ASP (Advertising and Sales Promotion) costs, but these were offset by gross margin expansion. The medium-term aspiration remains sustainable and profitable volume-led growth.

Marico Limited has been assigned an Environmental, Social, and Governance (ESG) score of 76.3 by SES ESG Research Private Limited. The disclosure was made on September 24, 2026, regarding the intimation received on September 23, 2026.

This new rating comes shortly after Marico was assigned an ESG score of 76, corresponding to a "Leader" rating, by Niche Ninety Nine Capability and Certifications (OPC) Private Limited on September 18, 2026.

Independent Assessment by SES ESG

SES ESG is a SEBI-registered ESG Rating Provider. The company clarified that it did not engage SES ESG for this specific assessment, and the rating was independently determined by the agency based on its parameters for Environment, Social, and Governance performance.

Regulatory Compliance

The intimation was issued in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details of this latest rating are available on both the National Stock Exchange of India Limited and BSE Limited platforms.

Previous Niche Rating

Prior to this update, Niche Ninety Nine had also provided an independent evaluation. Like the SES ESG assessment, the Niche rating was not engaged for by Marico. Investors can access full intimations for both ratings on the company’s website under the investor relations section.