Marico Limited: Q3 FY26 Earnings Update

Overview: Marico Limited delivered a robust performance for the quarter ended December 31, 2025, beating street estimates across key metrics. 1. Key Financial Highlights Revenue from Operations: ₹3,537 Crore (up 26.6% YoY). Analysis: Marginally surpassed estimates, driven by broad-based growth across categories. Net Profit (PAT): ₹460 Crore (up 13.3% YoY). Analysis: Beat the consensus estimate of ₹445 Crore. EBITDA: ₹592 Crore (up 11.1% YoY). Analysis: Operating earnings beat expectations despite margin compression. EBITDA Margin: 16.7% (vs. 19.1% in Q3 FY25). Analysis: Contraction reflects higher input costs and strategic investments in growth. Margins remain in line with analyst projections. 2. Operational Performance India Business (Resilient Growth): Domestic revenue grew 28% YoY. Market Share: Over 95% of the portfolio either gained or sustained market share. Parachute Coconut Oil: Recorded 2% volume growth (normalized), contributing 36% to India revenues. Saffola Edible Oils: Saw a marginal decline in volumes but remains a key revenue contributor (16%). International Business (Strong Momentum): Revenue up 24% YoY in INR terms. Constant Currency Growth: Delivered 21% growth in Q3, underscoring steady demand in key overseas geographies. 3. Strategic Corporate Actions Acquisition (Premium Snacking): Marico has announced the acquisition of a 93.27% stake in Zea Maize Pvt Ltd (owner of the 4700BC brand) from PVR INOX for ₹227 Crore. Rationale: 4700BC is a high-growth premium snacking brand (FY25 Revenue: ₹98.66 Cr), aligning with Marico's portfolio diversification strategy. Consolidation (Digital-First): The company will voluntarily liquidate its subsidiary, Zed Lifestyle, integrating the Beardo brand directly into Marico Ltd. This is aimed at unlocking operational synergies and streamlining costs.