Marico Q4 revenue growth beats estimates; Morgan Stanley sets target price at ₹625

The shares of Marico Limited were trading at ₹663.15 up by ₹2.20 or 0.33 per cent on the NSE today at 10 am.

Marico Limited reported high-teen consolidated revenue growth for the fourth quarter ended March 31, 2025, according to the company’s quarterly update released yesterday.

The FMCG major achieved its full-year target of low double-digit revenue growth for FY25 and expects to maintain double-digit momentum in FY26.

Morgan Stanley has given an Equal-weight call on Marico with a target price of ₹625 per share. The firm noted that Q4 revenue growth, driven by pricing, came in at high-teens (compared to 15 per cent in Q3), surpassing its estimate of 12 per cent.

While gross margin contraction is expected to be in line with Q3 due to copra and vegetable oil inflation, the management’s guidance for sustaining double-digit revenue growth in FY26 remains unchanged.

The India business showed sequential improvement in underlying volume growth with better market shares across key franchises. Parachute Coconut Oil experienced temporary volume sluggishness due to steep price increases and pack size reductions but still recorded high-teen revenue growth.

Saffola Oils registered revenue growth in the twenties, while Foods and Premium Personal Care segments maintained robust growth.

Marico’s international business delivered mid-teen constant currency growth with Bangladesh showing strong resilience despite challenging conditions. The MENA region and South Africa continued their double-digit growth trajectory.

Despite facing unprecedented highs in copra prices and firm vegetable oil costs, Marico expects only marginal operating profit growth year-on-year for the quarter. The company maintained aggressive brand-building investments in line with its strategic priorities.

“We expect gradual improvement in overall consumption sentiment on the back of moderating retail and food inflation as well as forecasts of a normal monsoon,” the company stated in its filing to stock exchanges.

The detailed financial results will be released after board approval. Marico serves one out of every three Indians and derives approximately 26 per cent of group revenue from its overseas portfolio.