Marico has delivered a strong financial performance in Q3, showcasing robust growth across key metrics and maintaining its strategic focus on profitable expansion. The FMCG major reported impressive consolidated revenue growth and demonstrated operational efficiency improvements during the quarter.

Financial Performance Highlights

The company's Q3 performance reflects strong momentum across its business segments:

India Business Performance

Marico's domestic operations continued to show resilience during Q3, with the India business maintaining underlying volume growth in high single digits. This performance demonstrates the company's ability to navigate market challenges while sustaining growth momentum in its core markets.

Margin Improvement Outlook

The company expects an uptick in gross margin on a sequential basis in Q3, indicating improved operational efficiency. Marico anticipates further gross margin improvement in the coming quarters, reflecting its focus on cost optimization and pricing strategies. This margin expansion is expected to support the company's profitability objectives.

Strategic Positioning and Future Outlook

Marico maintains its aspiration of delivering profitable volume-led growth over the medium term, emphasizing sustainable business expansion. The company remains optimistic about gradual improvement in consumption in the quarters ahead, positioning itself to capitalize on recovering market conditions.

The expected double-digit operating profit growth on a year-on-year basis in Q3 underscores the company's operational effectiveness and strategic execution. This performance trajectory aligns with Marico's commitment to balancing growth with profitability across its business portfolio.

Marico Limited delivered strong financial performance in Q3FY26, with consolidated revenue growth reaching the high twenties on a year-on-year basis. The consumer products company reported steady demand trends during the quarter while maintaining optimism about gradual consumption improvement in upcoming quarters, supported by easing inflation, lower GST rates, MSP hikes, and healthy crop sowing season.

India Business Performance Shows Sequential Improvement

The India business demonstrated resilience with underlying volume growth remaining in high single digits while marking sequential improvement during the quarter. Brand performance varied across the portfolio, with several key franchises showing distinct trends.

Parachute continued to demonstrate stellar resilience amid elevated input costs and pricing conditions. While the brand recorded a marginal volume decline, it remained in positive territory after normalizing for pack size reductions implemented in lieu of price increases. This underscores the brand's pricing power and loyal consumer base even in a challenging cost environment.

Value Added Hair Oils reinforced sustained franchise traction with growth in the twenties, supported by strategic focus in mid and premium segments, enhanced direct reach through Project SETU, and recent GST rate rationalization. The company expects to maintain double-digit growth in this segment over the near and medium term.

Saffola Oils witnessed a muted quarter as prior pricing actions anniversarised during the period. The Foods segment had a benign quarter but 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 internal aspirations, contributing to portfolio diversification.

International Operations Maintain Strong Momentum

The international business sustained robust performance with constant currency growth in the early twenties during Q3FY26. Bangladesh led the growth trajectory, while Vietnam and South Africa bounced back to double-digit growth driven by targeted initiatives across these markets.

Input Cost Environment and Margin Outlook

The company experienced favorable developments in key input costs during the quarter. Copra prices corrected approximately 30.00% from their highs and are expected to exhibit a downward bias in the coming months, aided by the flush season. However, vegetable oil prices remained at elevated levels while crude oil derivatives remained benign.

The company expects an uptick in gross margin on a sequential basis after bottoming out in the preceding quarter. Further gross margin improvement is anticipated in coming quarters, driven by the lagged pass-through of lower copra costs. Marico sustained brand-building investments to strengthen long-term franchise equity and drive accelerated portfolio diversification.

Financial Performance and Strategic Outlook

Marico expects operating profit growth to touch double digits on a year-on-year basis for Q3FY26. The consolidated revenue growth in the high twenties positions the company to achieve its full-year aspiration. The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by strengthening brand equity of core franchises and scaling up new growth engines across markets.

The company reiterated its commitment to sustainable and profitable, volume-led growth over the medium term, backed by strong core brands and the scaling up of new growth engines across domestic and international markets. Management expressed confidence in gradual consumption recovery supported by improving macroeconomic indicators and favorable policy measures.