Marico Ltd expects strong volume-led growth to continue through the rest of FY27, as improving monsoon conditions, easing input costs and a broader product portfolio reinforce management's confidence after the company's strongest domestic volume growth in five years.
“We are extremely confident of delivering high single-digit volume growth and aspire to achieve double-digit volume growth in at least one, if not more, of the remaining three quarters of the year,” managing director and chief executive officer Saugata Gupta told Mint in an interview on Wednesday.
The outlook follows an April-June quarter (Q1FY27) in which domestic volumes grew 11%, the highest in 20 quarters, while consolidated revenue from operations rose 22.8% year-on-year to ₹3,957 crore and net profit increased 27% to ₹652 crore.
Easing rural worries
Gupta said concerns that an El Niño-linked weak monsoon would weigh on rural demand have eased as rainfall improved.
Compared to June, the rainfall deficit has narrowed significantly as of the first week of August, he said. “Hence, concerns around rural demand are much lower than they were in June when the monsoon was delayed. Overall, we believe we are in a strong position.”
Marico's flagship Parachute franchise also benefited from earlier price cuts after copra prices fell about 45%.
“Our pricing interventions were initially focussed on large packs to reverse down-gradation and titration,” Gupta said. The company cut prices for loyalty packs, or large family packs. “This strategy has contributed to the gains which we have witnessed in Parachute volumes," he added.
Analysts at Systematix Institutional Equities said easing Parachute pricing should continue to support demand.
“With Parachute pricing easing in FY27 as copra moderates, we expect sturdy volume growth (already evident with double-digit growth in 1Q27 across India/ Parachute),” the brokerage said in an August 5 report.
The edible oils business remained the weak spot. Saffola edible oils posted 7% revenue growth during the quarter, while volumes declined in the high single digits. Gupta said Marico will continue to focus on premium Saffola products while expanding its cold-pressed oils range, which it sees as an emerging consumer trend.
He also reiterated the company's long-term ambition for Saffola Foods.
“Over the next three to five years, the foods portfolio has the potential to become larger than the edible oils business,” he said.
Food products currently account for about 30% of Saffola revenue, a share Gupta expects to rise to around 50% over the next few years.
Gupta said Marico's revamped distribution strategy under Project SETU, alongside its direct-to-consumer brands, has strengthened both urban and rural distribution. “We are now neutral to whether growth is driven by rural or urban markets.”
Diversification push
Gupta said Marico's growth will be driven by four focus categories: Parachute Advansed Protein Shampoo, Parachute Advansed Almond Oil, Saffola Cold Pressed Oil and Muesli.
“We remain very confident about our key growth bets, such as Parachute Advansed Protein Shampoo Range, and Parachute Advansed Almond Oil, Saffola Cold Pressed Oil and Muesli,” he said. “These are the four big strategic pillars of our diversification portfolio.”
Marico entered the shampoo market in May this year, and the cold-pressed oils segment in June 2025.
Marico has also expanded through acquisitions including Cosmix Wellness, Plix, Just Herbs, Beardo and 4700BC, and recently merged Just Herbs and Beardo into the parent company. “The amalgamation of Beardo and Just Herbs is expected to help reduce complexity, unlock synergies and costs efficiencies,” Gupta said.
Systematix said Marico could see a meaningful margin recovery over FY27 and FY28 as copra costs ease, product mix improves and distribution efficiencies strengthen.
“Similar to past cycles (FY17, FY20, FY24), we expect significant margin rebound over FY27E-FY28E driven by 1) easing copra, 2) better product mix (new categories, VAHO) and 3) higher direct reach efficiencies,” the brokerage said.
Shares of Marico fell as much as 3.1% to ₹847 on Wednesday on the National Stock Exchange, while the Nifty 50 declined 0.28%.