India`s Marico beats quarterly profit view on packaged oil price hikes
Indian consumer goods maker Marico reported quarterly profit above analysts' expectations on Friday, boosted by improving rural demand and price increases for its key hair and cooking oil brands.
Its consolidated net profit rose 8% to 3.43 billion rupees ($40.6 million) in the January-March quarter, beating analysts' estimate of 3.34 billion rupees, according to data compiled by LSEG.
Marico also said it would aim to post double-digit growth in operating profit for the fiscal year that started on April 1.
Hair and edible oil, considered household staples in India, have been relatively resilient to an inflation-led slowdown in branded consumer goods sales for the last few quarters, despite manufacturers raising prices to counter higher raw material costs.
Sales of Marico's 'Saffola' edible oil rose 26% year-on-year in India for the fourth quarter, while the 'Parachute' brand of coconut hair oil grew 22%.
Together, they make up more than half of Marico's revenue in India, which accounts for three-fourths of its topline.
India's rural areas, in particular, which account for over a third of overall consumer goods sales, have been a bright spot for urban-centric Marico and its peers struggling with a spending slowdown in large cities.
"Consumer sentiment remained stable amidst improving demand in rural," Marico said in a presentation, adding it plans to expand its presence in villages across the country.
Its revenue rose 20%, led by price hikes, to 27.30 billion rupees, with overall volumes from the Indian business growing 7%.
Earlier in the week, India's AWL Agri Business, previously known as Adani Wilmar, reported a 22% jump in profit, before raising its forecast for fiscal 2026 sales volumes, betting on delivery boom and easing inflation.
Shares of Marico closed nearly 2% lower before its results, cutting gains to 9% this year.
($1 = 84.4730 Indian rupees)
