MARICO

Delivers Strong Q4 Update Amid Sector Turmoil

remains relatively insulated from the disruptions caused by the West Asia conflict. Its Q4FY26 business update showcased strong momentum across core categories and growth engines, driving a 3% stock surge. Sustained domestic volume growth, easing raw material costs, and diversification into food and digital-first brands underpin the company’s resilience. Domestic Business Drivers - Underlying volume growth (UVG): sustained high single-digit trajectory. - Parachute portfolio: recovery aided by price cuts amid deflationary copra trends. - Value Added Hair Oils (VAHO): double-digit growth expected, supported by GST rate revision, wider direct reach, and innovation pipeline. - Food portfolio: continues to scale strongly, adding breadth to revenue streams. - Digital-first brands: remain a key growth driver, enhancing consolidated revenue momentum. International Business - Strong momentum in overseas markets contributed to consolidated revenue growth in the low-twenties for Q4FY26. - Diversification across geographies provides resilience against regional disruptions. Margins & Profitability - Double-digit operating profit growth expected in Q4FY26. - Drivers: sequential volume-led topline expansion and EBITDA margin improvement from easing copra prices. - Copra accounts for ~50% of Marico’s raw material basket, offering insulation from crude-linked volatility. Valuation & Outlook - Trades at 42x FY28E earnings, considered reasonable given growth visibility. - Diversification into food, digital-first brands, and international markets provides valuation support. - Analysts highlight enhanced free cash generation and prudent balance sheet management as key monitorables. Conclusion Marico’s strong Q4 update reinforces its positioning as a resilient FMCG player. With raw material tailwinds, innovation-led growth, and diversified revenue streams, the company is well-placed to sustain momentum despite sectoral headwinds from the West Asia conflict.