Overview
Marico Limited (NSE: MARICO) is one of India's leading fast-moving consumer goods (FMCG) companies with a diversified portfolio spanning edible oils, hair care, foods, wellness, and personal care products. Its flagship brands, including Parachute and Saffola, enjoy strong domestic market positions, while the company has steadily expanded its international footprint across Asia, the Middle East and Africa. On Tuesday, the stock traded lower despite reporting a strong quarterly performance, as investors assessed recent gains following the earnings announcement.
Profit Beats Expectations but Shares Witness Profit Booking
Marico delivered a strong set of Q1 FY27 numbers, with consolidated net profit rising 25% year-on-year to ₹630.00 crore, comfortably ahead of market expectations of around ₹587–₹590 crore. Revenue from operations increased 22.85% to ₹3,957.00 crore from ₹3,221.00 crore in the corresponding quarter last year, reflecting healthy demand across key product categories.
Operating performance also improved during the quarter. Consolidated EBITDA climbed 25.04% to ₹819.00 crore, while EBITDA margins expanded to 20.70%, supported by easing copra costs and improved operating efficiencies. Although the quarterly performance exceeded expectations, the stock witnessed profit booking after its recent rally, resulting in a decline of more than 2% during the session.
Domestic Growth and Global Expansion Drive Earnings Momentum
Marico reported its strongest domestic volume performance in nearly five years, with India business volumes growing 11% year-on-year, marking a 20-quarter high. Parachute Rigids recorded 10% volume growth, while the Value-Added Hair Oils portfolio posted 22% value growth, reflecting sustained demand across premium product categories.
The Foods business continued its rapid expansion, registering 43% growth and crossing an annualised revenue run rate of ₹1,300.00 crore, led by strong demand for oats, muesli and soya chunks. International operations also remained resilient, delivering 15% constant currency growth, supported by healthy performance across Vietnam and the MENA region.
Marico further strengthened its premium portfolio by completing the acquisition of a 75% stake in Vietnam-based Skinetiq and building on its earlier investment in Cosmix Wellness, reinforcing its long-term focus on beauty, skincare and wellness categories.
Technical Picture Indicates Long-Term Trend Remains Intact
Marico Limited (NSE: MARICO) traded around ₹856.65 after opening at ₹878.60. The stock touched an intraday high of ₹879.00 before slipping to a low of ₹846.85. Despite the decline, the stock continues to trade above its 50-day Simple Moving Average of ₹838.11, indicating that the broader medium-term trend remains positive. The 14-day Relative Strength Index stood near 50.44, suggesting momentum has moderated following the recent rally.
Key Technical Levels
Immediate support is placed near ₹846.85, followed by ₹838.00. On the upside, immediate resistance is seen around ₹879.00, with a sustained move above this level likely to improve near-term price structure.
What Investors May Track Going Forward
Market participants are expected to monitor raw material cost trends, domestic volume growth, margin sustainability, Foods business expansion, international market performance, integration of recent acquisitions and continued premiumisation across the company's portfolio.
Summary
Marico Limited (NSE: MARICO) reported a stronger-than-expected quarterly performance driven by healthy volume growth, expanding margins and broad-based business momentum across domestic and international markets. While the stock witnessed profit booking following recent gains, investors are likely to remain focused on execution across its premium product strategy, international expansion and long-term earnings trajectory.
Frequently Asked Questions
Q: Why did Marico (NSE: MARICO) shares decline despite strong Q1 FY27 results?
A: The stock witnessed profit booking after its recent rally despite reporting better-than-expected earnings and margin expansion.
Q: How much did Marico's net profit increase in Q1 FY27?
A: Consolidated net profit increased 25% year-on-year to ₹630.00 crore.
Q: What drove Marico's revenue growth during the quarter?
A: Strong domestic volume growth, Foods business expansion and healthy international performance supported revenue growth of 22.85% to ₹3,957.00 crore.
Q: What strategic acquisitions has Marico completed recently?
A: The company completed the acquisition of a 75% stake in Vietnam-based Skinetiq and had earlier acquired a 60% stake in Cosmix Wellness to strengthen its premium skincare and wellness businesses.