Marico’s Q3 results show a 15% YoY revenue growth to ₹2,794 crore and a 4% increase in net profit to ₹399 crore. The company also declared an interim dividend of ₹3.50 per share.
Marico Ltd, one of India’s leading consumer goods companies with a focus on hair care, wellness, and beauty products, reported its third-quarter (Q3) results for FY25, announcing a 4% year-on-year (YoY) increase in net profit to ₹399 crore. The company also posted a 15% YoY growth in revenue, reaching ₹2,794 crore in Q3, up from ₹2,422 crore in the same period last year.
Q3 Financial Highlights
Marico’s growth was primarily driven by robust domestic business performance, which benefited from both price hikes and increased volumes.
- Net Profit: ₹399 crore, up 4% YoY
- Revenue: ₹2,794 crore, up 15% YoY
- Domestic Revenue: ₹2,101 crore, up 17% YoY
- Volume Growth in India: 6%, surpassing analyst estimates of 5%
- International Business: 16% constant currency growth
Despite the challenges posed by rising input costs, particularly for copra and vegetable oil, Marico maintained strong revenue growth in its key segments. The company implemented price hikes in its core portfolios to mitigate the impact of increased input costs.
Segment-wise Performance
Marico’s Parachute Coconut Oil, which contributes 33% of the company’s domestic revenue, saw a 3% volume growth in Q3, with the brand reporting 15% revenue growth due to earlier price hikes. A 5% price increase was implemented toward the end of the quarter.
E-commerce and modern trade (MT) channels recorded high double-digit volume growth, while the general trade (GT) channel remained flat. Marico’s focus on advertising and promotion (A&P) expenses, which rose by 19% YoY, is aimed at strengthening its product franchises and driving brand diversification.
Margin and Dividend
Marico’s gross margin contracted by 180 basis points YoY, mainly due to the rise in raw material costs. However, the company declared an interim dividend of ₹3.50 per share on its paid-up equity share capital of ₹129.5 crore.
EBITDA rose by 4% YoY, but the EBITDA margin dropped by 210 basis points to 19.1%.
Looking ahead, Marico anticipates gradual improvement in growth trends, especially within its core categories in the domestic business. The company is focused on Project SETU, a strategic initiative to expand its direct reach footprint, and is also making efforts to support select GT channel partners.
Marico expects to deliver double-digit revenue growth through consistent performance in its domestic core portfolios, accelerated growth in the Foods and Premium Personal Care segments, and continued expansion in the international markets. The company also aims to improve operating margins over the medium term, supported by leverage benefits and the premiumisation of its product portfolios.
