Marico Share Price Dips Post Q1 Results: Key Financial Highlights Unveiled

Market Performance

Shares of Marico Ltd witnessed a slight decline in morning trade on August 5, slipping over 1% to ₹714 after the FMCG giant announced its Q1 FY26 earnings. Despite a strong year-on-year profit increase, the stock reacted to margin pressures.

• Current share price: ₹714
• Intraday movement: Down over 1%
• Year-to-date performance: Up 13%

Main News

Marico reported a consolidated net profit of ₹513 crore for the April–June quarter of FY26, marking an 8.2% YoY rise. The company achieved broad-based revenue growth, supported by its diverse product portfolio. However, a contraction in operating margins impacted investor sentiment.

Company Financial Details

Revenue

• Total revenue from operations stood at ₹3,259 crore, showing a 23.3% YoY growth.
• The rise was driven by strong performance across key categories such as hair oils, edible oils, and digital-first brands.

EBITDA Margins

• Operating margin dropped to 20.1% from 23.7% in the previous year.
• The dip reflects increased input costs, putting pressure on overall profitability.

Net Profit

• Net profit for Q1 FY26 rose to ₹513 crore, up 8.2% YoY, reflecting the company's continued resilience in the competitive FMCG landscape.

Segment Highlights

• Value-Added Hair Oils (VAHO):
  Gained 140 bps in value market share on a MAT (Moving Annual Total) basis.
• Saffola Edible Oils:
  Achieved mid-single digit volume growth despite a high pricing environment.
  Recorded 28% revenue growth.
  Passed on import duty cuts to consumers to stay competitive.
• Foods & Digital-first portfolios:
  Continued to show strong traction, contributing significantly to overall revenue growth.
• International Business:
  • Bangladesh: Posted 17% constant currency growth (CCG).
  • Vietnam: Witnessed a muted performance, though a gradual recovery is anticipated.

Summary

Despite reporting double-digit revenue growth and a solid rise in net profits, Marico's share price slipped marginally due to a decline in operating margins. Key segments like VAHO and Saffola Edible Oils delivered healthy performance, while the international business showed mixed results.

With 13% YTD gains, Marico’s stock continues to remain in focus amid evolving market dynamics and margin pressures.