Marico expects strong operating profit growth in Q1 as copra prices fall 45% from peak

Marico Ltd, the maker of Parachute Coconut Oil and Saffola Oils, said it expects strong operating profit growth in the April-June quarter, driven by robust business growth and softening in copra prices.

“Demand trends during the quarter remained steady, supported by resilient economic activity,” Marico said in its quarterly update filed with the stock exchanges on Thursday. “We remain optimistic about consumption trends, while closely monitoring the evolving inflationary conditions and the impact of El Niño on the monsoon.”

The company expects consolidated revenue to grow in the early 20s, driven by robust broad-based performance across its core, digital and international businesses. The cost of crude-linked derivatives and vegetable oils rose sharply during the quarter.

However, copra prices declined 45% from peak levels, helping Parachute Coconut Oil deliver double-digit volume growth, its highest in several quarters. Parachute brands contribute to 36% of Marico’s revenue from India. When copra prices fell in January, the company passed on the benefit to customers.

Saffola Oils recorded mid-single digit price-led revenue growth, although volumes declined as the company rationalized the supply of select variants to maintain threshold profitability in the trade-off with volume growth.

Promotion drive

Marico’s India business reported double-digit underlying volume growth and reached a multi-quarter high. The company accelerated its advertisement sales and promotion investments substantially as it “invested in brand-building initiatives to strengthen the long-term equity of our franchises and drive portfolio diversification.”

Marico reported a 14% year-on-year increase in consolidated net profit to ₹391 crore in the quarter ended 31 March. Profit declined 12.5% from ₹447 crore in Q3 of FY26. Consolidated revenue from operations grew 22% to ₹3,333 crore in the fourth quarter of FY26.

The FMCG sector maintained steady revenue growth during the June quarter despite some weakness in the general trade channel, analysts at Anand Rathi said in a 30 June report.

Marico shares gained 0.6% to ₹856 on the National Stock Exchange at the close on Thursday. The Nifty FMCG index gained 0.56%.