Marico Q3FY25 revenue up 15% at Rs 2,794 cr; PAT grows 4%

• Consolidated Revenue in Q3FY25 up 15% and India Volume Growth at 6%– both at 13 quarter high
• Parachute and Saffola Oils log strong double-digit growth
• Diversification through Foods and Digital-first portfolios on track
• International business maintains robust growth momentum
• On course to deliver double-digit revenue growth in FY25

Marico Limited has reported 15% YoY growth in revenue from operations at Rs 2,794 crore in Q3 FY2025, with underlying volume growth of 6% in the India business and constant currency growth of 16% in the international business. Consolidated and domestic revenue growth, as well as underlying volume growth in the India business, stood at a 13-quarter high.

The India business posted an uptick in underlying volume growth on a sequential basis, which was underpinned by a resilient performance across the core portfolios and scale-up of the new businesses. Offtake growth remained strong as >90% of the business either gained or sustained market share and ~80% of the portfolio either gained or sustained penetration, both on a MAT basis. Domestic revenue was ₹2,101 crore, up 17% YoY, led by price hikes in core portfolios in response to the sharp rise in input costs. Among channels, MT and E-commerce (including Quick Commerce) continued to lead with high double-digit volume growth, while GT was flattish. Project SETU extended to 1 more state during the quarter, taking the current count to 11 states. We continue to drive efficient coverage across all geographies to deliver business growth and investments in infrastructure across all town classes.

The International business upheld its robust broad-based growth trajectory as most of the markets delivered in line with expectations.

Gross margin contracted by ~180 bps YoY, primarily impacted by the rising trend in copra and vegetable oil prices, which was only partly offset by pricing interventions in key portfolios. A&P spends were up 19% YoY, in line with our strategic intent to continually strengthen our franchises and accelerate diversification. Consequently, EBITDA was up 4%, as EBITDA margin stood at 19.1%, down 210 bps. PAT was up 4% YoY.

At its meeting held on January 31, 2025, the Board of Directors of the Company declared an interim dividend ₹3.50 per share on its paid up equity share capital of ~₹129.5 crores.

India Business

Parachute Rigids registered 3% volume growth. The brand exhibited strength despite the steeper-than[1]anticipated rise in copra prices. Volume offtakes grew in high single digits, leading to ~140bps gain in market share on MAT basis. The brand logged 15% revenue growth, aided by pricing hikes taken during this year.

Saffola Edible Oils demonstrated stability, delivering low-single digit volume growth amidst the sharp rise in vegetable oil prices. The brand posted 24% revenue growth, led by price hikes taken over the last few months.

Value-Added Hair Oils declined by 2% in value terms, witnessing definitive signs of recovery on a sequential basis. Mid and premium segments fared relatively better and drove ~70bps gain in market share on a MAT basis. We expect gradually improving trends in VAHO on the back of ATL investments, brand activations and gradually improving trends in rural consumption sentiment.

Foods posted robust 31% value growth YoY, nearing ₹1,000 cr. ARR in Q3. Saffola Oats delivered double-digit growth, while the newer franchises fared healthily. True Elements and the plant-based nutrition portfolio of Plix maintained their accelerated growth momentum.

Premium Personal Care also continued its strong run during the quarter. The Digital-first portfolio, comprising Beardo, Just Herbs and the personal care portfolio of Plix, scaled ahead of expectations to reach ~600 cr. in ARR in Q3. Beardo is on course to deliver double-digit EBITDA margin this year.

The composite revenue share of Foods and Premium Personal Care (including Digital-first brands) in the domestic business stood at ~21% in 9MFY25, signifying furtherance of the portfolio diversification agenda of the India business.