Marico raises FY27 margin outlook following strong September quarter growth
The company expects Ebitda margins to reach the mid-20 per cent range, up from the previous estimate of around 20 per cent.
Marico reported double-digit growth in revenue and profit for the September quarter, according to the Economic Times. The company attributed this performance to healthy demand for premium personal care, foods, and coconut oil, alongside lower copra prices that helped support margins.
The company has increased its Ebitda margin guidance for FY27 to the mid-20 per cent range from an earlier estimate of approximately 20 per cent. Marico also aims to reach its ₹20,000 crore revenue target by FY29, advancing the goal from the previous FY30 timeline.
The foods portfolio saw a 45 per cent year-on-year increase, with an annualised revenue run-rate (ARR) exceeding ₹1,500 crore. This was driven by demand for nutrition brands and Saffola foods, with further expansion planned in protein and nutrition categories.
In the premium personal care segment, growth was led by Beardo, Livon, and Parachute Advansed Protein Shampoo. The company expects the shampoo portfolio's ARR to exceed ₹100 crore in its first year, with a medium-term target of ₹400-500 crore.
Marico expects consolidated revenue to grow in the teens, likely surpassing ₹15,000 crore from ₹13,611 crore in FY26. The company anticipates double-digit volume growth in India and expects digital-first businesses to achieve double-digit Ebitda margins by FY27.
On Tuesday, Marico shares rose 9.4 per cent to ₹873.2. Analysts have maintained 'Buy' ratings for the stock, suggesting a potential upside of 12-15 per cent from Tuesday's closing price.