Marico expects strong operating profit growth in Q1 as copra prices fall 45% from peak

Marico Ltd, maker of Parachute Coconut Oil and Saffola Oils, said it expects strong operating profit growth in the April-June quarter, driven by strong business growth and softening in copra prices.

“Demand trends during the quarter remained stable, supported by resilient economic activity,” Marico said in its quarterly update to stock exchanges on Thursday. “We remain optimistic about consumption trends while closely monitoring evolving inflation conditions and the impact of El Niño on the monsoon.”

The company expects consolidated revenue to grow in the early 20s, driven by strong broad-based performance across its core, digital and international businesses. The cost of crude oil-related derivatives and vegetable oils rose sharply during the quarter.

However, copra prices have fallen 45% from their peak levels, helping Parachute Coconut Oil deliver double-digit volume growth, the highest in several quarters. Parachute brands account for 36% of Marico’s revenue from India. When coconut prices dropped in January, the company passed on the benefit to customers.

Saffola Oils recorded mid-single-digit price-driven revenue growth, but volumes declined as the company rationalized the supply of selected variants to maintain threshold profitability in balance with volume growth.

promotional drive

Marico’s India business reported double-digit underlying volume growth, reaching its highest level in the last quarter. The company has significantly accelerated its advertising sales and promotion investments, “investing in brand-building initiatives to strengthen the long-term equity capital of our franchisees and increase portfolio diversity.”

Marico reported a 14% year-on-year increase in consolidated net profit. ₹391 crore in the quarter ended March 31. Profit fell by 12.5 percent ₹447 crore in the 3rd quarter of FY26. Consolidated revenue from operations increased by 22% ₹3,333 crore in the fourth quarter of FY26.

Anand Rathi’s report dated June 30 stated that the FMCG sector maintained steady revenue growth in the June quarter despite some weaknesses in the overall trade channel.

Marico shares gained 0.6% ₹At the close on Thursday, the 856th Nifty FMCG index on the National Stock Exchange gained 0.56 percent.