1QFY27E: Better-than-expected sales growth; OP growth in line Quick Note

Research evidence excerpt

1QFY27E: Better-than-expected sales growth; OP growth in line Quick Note

Global Markets Research

Marico MRCO.NS MRCO IN 2 July 2026

EQUITY: GENERAL CONSUMER

Rating1QFY27E: Better-than-expected sales growth; OP growth in line Remains Buy

Target price INR 950 RemainsQuick Note

Closing price INR 856 2 July 20261QFY27E: Consolidated sales growth in low-twenties

Marico in its 1Q27Ebusinessupdate highlighted –

• Industry trends: The sector witnessed steady demand in 1Q. Research Analysts

• MRCO expects consolidated revenue growth in low-twenties y-y for 1QFY27E vs India Consumer Related

our estimate of c.18.5% y-y. Mihir P. Shah - NFASL

○ MRCO expects 1QFY27 India volume to improve sequentially and grow in mihir.shah1@nomura.com

double-digits y-y to a multi-quarter high vs our estimate of 8-9% y-y. This will +91 22 403 74232

be driven by better-than-expected volume growth in Parachute Coconut Oil. Riya Patni - NFASL

riya.patni@nomura.com

• Consolidated EBITDA growth to be strong, but we think it will be in line with our +91 22 405 33473

estimate of 19% y-y as MRCO increases its A&P substantially.

○ Correction in copra prices by c.45% from their peak will drive a sequential

improvement in gross margins; however, an increase in ad spends can lead

EBITDA growth to be lower than sales growth.

1QFY27F: Category / brand trend

• Parachute coconut oil (26%ofconsolidatedsales): We expect Parachute to report

sales growth of c.26% y-y for 1Q (vs 29% in 4Q) as weighted average price cuts of

10% and anniversarization of earlier taken price hikes supported a pickup in volume

growth to double-digits after five quarters of decline.

• Saffola edible oil (14%ofconsolidatedsales) is expected to report mid-single-digit