Table of Contents
Between FY23 and early FY24, Marico’s domestic volume growth remained subdued at 2–4%, reflecting weak discretionary demand, rural softness, and category stagnation in core hair nourishment. Through FY25, growth began to improve gradually as rural recovery strengthened, pricing stabilized, and core brands regained momentum. By FY26, the company delivered a sharp uplift, with volumes rising to 7–9%-its strongest trajectory in several quarters.
Core categories such as Parachute, VAHO, and Saffola showed healthy traction, while Foods and Premium Personal Care continued their steady expansion. However, elevated copra costs compressed gross margins to a 16-quarter low of 42.6%, driving EBITDA margin down 350bps to 16.1%.
Management expects meaningful raw material softening from March onward and is guiding for double-digit EBITDA growth in 2H FY26 and a 200–250bps margin expansion in FY27.
What It Means
The steady acceleration from 2–3% levels to nearly double-digit growth suggests broad-based demand recovery and improving competitive performance. Stronger growth in value-added hair oils, a more stable pricing environment, and better rural traction are likely driving the turnaround. Sustaining this momentum positions Marico to regain market share, expand margins through operating leverage, and enter FY26 with improved confidence in core-category fundamentals.
