Marico: Steady trends, but on expected lines; Price actions after the copra slide key to watch

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Marico: Steady trends, but on expected lines; Price actions after the copra slide key to watch

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Marico

Steady trends, but on expected lines; Price

actions after the copra slide key to watch

Maintain Rating: BUY | PO: 875.00 INR | Price: 856.00 INR

Healthy 1QFY27 trading update – in line with expectations 03 July 2026

Marico’s 1Q update reinforced the company’s continued business outperformance, aided Equity

by steady core trends and upsides from portfolio diversification (including acquisitions).

However, we found the 1Q release more qualitative (than quantitative) compared to the Aditya Mathur >> Research Analyst

past - our read suggests consolidated revenue/EBITDA growth of ~22%/19% YoY. India BofAS India

volume inched up to double-digit growth driven by a positive swing in Parachute coconut +91aditya.mathur@bofa.com22 6632 8958

oils, offsetting a decline in Saffola oils. Pricing interventions may have some benefit on Pritesh Sonar >>

Parachute volumes; input copra prices so far are in a sweet spot – down from last year’s Research Analyst

BofAS India

highs, but still above the earlier cycle. This keeps smaller competitors at bay, in our view, pritesh.sonar@bofa.com

especially as packaging/logistics/ other cost push are also challenges for such players.

Incrementally, we learn that copra prices have corrected further in recent months -

~45% decline from peak levels (previous comments at 4Q call indicated 35% dip). This, Stock Data

coupled with recent moderation in the oil basket could lead to resurgence in competitive

intensity from smaller players in our view. We will monitor these trends and expect Price 856.00 INR

Marico to act with agility if further consumer price cuts are required. This will dictate its Price Objective 875.00 INR