MARICO

delivered the growth everyone wanted, but margins took a beating - classic FMCG dilemma.

Revenue up 23% to ₹3,259 crores with solid 9% volume growth in India shows the consumption recovery is real, not just price-driven. Their international business growing 19% in constant currency terms is also impressive. But EBITDA margins dropped 360 basis points to 20% as raw material inflation, especially copra, hit hard. What's encouraging is their diversification push actually working. Foods business is now 5x what it was in FY20, and their digital-first brands are scaling nicely. They're not just sitting around waiting for coconut oil demand to revive - they're building new growth engines while the core business faces headwinds. The big question is whether this margin compression is temporary or structural. Copra prices can be volatile, but if they stay elevated,

will struggle to maintain their historical profitability. Management's targeting 25%+ revenue growth for the full year, which sounds aggressive but might be necessary to offset margin pressure through scale.