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 coconut oil, foods, and premium personal care, alongside lower copra prices that helped margins.
The company has increased its Ebitda margin guidance for FY27 to the mid-20 per cent range from the earlier estimate of approximately 20 per cent. Marico also moved its target of reaching ₹20,000 crore in revenue forward to FY29 from FY30.
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 supported by demand for Saffola foods and nutrition brands, with further expansion planned in protein and nutrition categories.
In the premium personal care segment, growth was driven by Beardo, Livon, and Parachute Advansed Protein Shampoo. The company expects the shampoo portfolio to achieve an ARR of over ₹100 crore in its first year, aiming for ₹400-500 crore in the medium term.
Marico anticipates double-digit volume growth in India and consolidated revenue growth in the teens. Annual revenue is projected to exceed ₹15,000 crore, up from ₹13,611 crore in FY26.
The company expects Project SETU to increase annual volume growth by 1-2 per cent through better rural penetration and direct retail reach. Growth is also expected from overseas markets including Vietnam, the Middle East, South Africa, and a recovery in Bangladesh.