FMCG major Marico has reported a strong start to FY27, with its India business accelerating its growth trajectory in the first quarter by delivering double-digit underlying volume growth, marking its highest growth momentum in multiple quarters.
In its Q1 business update, the company said the performance was driven by broad-based strength across its core brands, premium portfolio and international operations, with consolidated revenue expected to grow in the early twenties on a year-on-year basis.
Parachute posts strongest volume growth in several quarters
Marico’s flagship Parachute Coconut Oil brand delivered double-digit volume growth, its strongest performance in several quarters. The company attributed the growth to the brand’s strong consumer trust, market leadership and focused execution.
Meanwhile, Saffola Oils registered mid-single-digit revenue growth, led by pricing. However, volumes declined as the company rationalised the supply of select variants to prioritise profitability over volume expansion.
Premium portfolio continues to gain momentum
The Value Added Hair Oils portfolio posted another robust quarter, with revenue growing in the twenties, supported by a strategic focus on mid and premium segments, wider direct distribution through Project SETU, and a pipeline of differentiated product innovations.
Marico said its Foods and Premium Personal Care businesses, including digital-first brands, continued to scale up in line with its diversification strategy, strengthening the company’s new growth engines.
International business maintains strong momentum
The company’s international business recorded mid-teens constant currency growth, led by strong performances in Vietnam and the Middle East and North Africa (MENA) region, along with positive contributions from other overseas markets.
However, the Bangladesh business witnessed temporary moderation due to pricing anniversaries and softer consumer demand amid elevated inflation.
Margins expected to improve
On the input cost front, Marico said prices of crude-linked derivatives and vegetable oils increased sharply during the quarter.
At the same time, copra prices have corrected by around 45% from their peak, although they remain above historical averages. The company expects this moderation to support a sequential improvement in gross margins.
Marico also increased investments in advertising and sales promotion (ASP) during the quarter to strengthen brand equity and accelerate portfolio diversification.
Confident of meeting FY27 aspirations
The company expects strong operating profit growth during the quarter, supported by robust business performance and easing copra prices.
Marico said the strong beginning to the financial year reflects the strength of its business model, disciplined execution and strategic focus. It reiterated its medium-term goal of delivering sustainable, profitable, volume-led growth by strengthening its core brands while scaling up new growth businesses across domestic and international markets.