Company Update :Marico by Motilal Oswal Financial Services Ltd
India volumes grow in double-digit; consol. revenue up in early twenties
* Demand trends in 1QFY27 remained steady, supported by resilient economic activity. MRCO remains optimistic about consumption trends, while closely monitoring the evolving inflationary conditions and the impact of El Niño on the monsoon.
* Domestic business further accelerated its growth trajectory, delivering double-digit underlying volume growth and reaching a multi-quarter high.
* Consolidated revenue is expected to grow in early twenties in 1QFY27, driven by robust broad-based performance across its core, digital, and international businesses. The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale-up of new growth engines across markets.
International Business
* In 1QFY27, the international business continued its strong growth momentum, with mid-teen constant currency growth, led by outperformance in Vietnam and MENA alongside positive contribution from all other markets.
* Management highlighted that Bangladesh experienced a transient moderation in growth due to pricing anniversarization and marginal demand softness amid elevated inflation
Costs & Margins
* Among key inputs, the cost of crude-linked derivatives and vegetable oils rose sharply during the quarter.
* Copra prices have corrected meaningfully, down ~45% from peak levels, although they remain above historical averages.
* Consequently, gross margin is expected to expand sequentially.
* Brand-building investments were sustained to strengthen the long-term brand equity and accelerate portfolio diversification.
* In the given context, MRCO expects a strong operating profit growth, driven by robust business growth and softening in copra price
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