India's Marico flags shrinking quarterly margins from higher input costs (updated)

Marico

05/05/2026 10:15

Marico expects FY27 revenue above estimates

Push into premium segments a key driver

Cost cuts, price increases to offset higher crude-linked input costs, Marico says

Recasts paragraph 1; adds revenue forecast in paragraph 3, company comment in paragraph 10; updates shares in paragraph 5

By Surbhi Misra and Praveen Paramasivam

May 5 (Reuters) - India's Marico MRCO.NS forecast annual revenue above estimates on Tuesday, betting on steady volume growth and expansion in its premium segments, even as it warned of price hikes and shrinking margins after Middle East tensions drove up input costs.

The consumer goods major, which is known for its Parachute and Saffola brands of oils, has made a strong push into the premium tier in the foods and personal care segments, adding brands such as Plix, True Elements, Beardo and Just Herbs over the last decade. The shift away from oils is a move that peer AWL Agri Business AWLA.NS is also pursuing.

Marico forecast consolidated revenue crossing 150 billion rupees ($1.57 billion) for the ongoing fiscal year ending March 2027, above estimates of 146.94 billion rupees, according to data compiled by LSEG.

The segment accounted for around 23% of its overall revenue in fiscal 2026, the company said, expecting the segment to grow to around 33% by fiscal 2030.

Shares closed 2.9% higher, reversing course from losses of 2.7%, after the firm said it aspired to deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in the high-teen percentage range in fiscal 2027, subject to "stable" macro conditions.

MARGIN PRESSURES

Ongoing geopolitical tensions have pushed Brent crude prices to above $110, eating into the company's EBITDA margin, which shrank 114 basis points to 15.6% for the fourth quarter ended March 31.

Marico, echoing consumer goods peers - including bellwether Hindustan Unilever HLL.NS - said it would cut costs and raise prices to protect its margins.

"Vegetable oils and other crude‑linked inputs continue to exhibit an inflationary bias, following the ongoing geopolitical developments in the Middle East," the company said, adding that a decline in prices of copra, a key ingredient for coconut oil, will help alleviate potential crude-related pressures.

For the fourth quarter, revenue climbed 22% to 33.33 billion rupees, while profit rose 14% to 3.91 billion rupees, beating estimates of 3.85 billion rupees.

($1 = 95.2800 Indian rupees)

Marico EBITDA margins drop  amid cost pressures https://reut.rs/49eShrf

Marico quarterly profit fluctuates despite growth https://reut.rs/4dpTIpe

 (Reporting by Surbhi Misra in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)

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