Marico ad spends rise 15%, posts 27% revenue growth in Q3FY26: Report

Marico Ltd. reported a 27% year-on-year rise in revenue from operations in the third quarter ended December 31, 2025, supported by higher advertising and promotion spending and volume-led growth in India and overseas markets.

The advertising and promotion (A&P) expenditure rose 15% year-on-year during the quarter as it continued to invest in long-term brand building across core and new portfolios. Gross margin improved by about 90 basis points sequentially due to easing copra prices, though it remained under pressure on a year-on-year basis, declining about 595 basis points.

EBITDA grew 11% year-on-year, while EBITDA margin stood at 16.7%, down about 234 basis points from a year earlier. Profit after tax (PAT) rose 12% year-on-year to Rs 447 crore. The company also recognised a one-time impact of about Rs 6 crore related to the implementation of new labour codes on gratuity and leave encashment liabilities.

Revenue from operations during the quarter stood at Rs 3,537 crore, compared with the year-ago period. Underlying volume growth in the India business was 8%, while the international business recorded constant currency growth (CCG) of 21%.

India business revenue rose 28% year-on-year to Rs 2,681 crore, driven by improved underlying volumes and pricing actions taken over the past 12 months to offset inflation in key input costs. E-commerce and quick commerce channels continued to lead growth, while traditional trade showed improved traction following investments and targeted initiatives over the last 24 months.

The offtake growth remained strong, with more than 95% of the business gaining or sustaining market share and about 80% gaining or sustaining penetration on a moving annual total (MAT) basis.

Within the India portfolio, Parachute Rigids reported a 1% decline in reported volumes, though underlying volume grew 2% after adjusting for ml-age reductions. Revenue growth for the brand stood at 50%.

Value-Added Hair Oils recorded 29% value growth during the quarter, gaining 170 basis points in value market share on a MAT basis to reach about 30%.

Saffola Edible Oils posted flattish revenue growth amid elevated pricing levels, while Foods grew 5% year-on-year. Saffola Oats continued to gain market share on a MAT basis and retained its position as the leading oats brand.

Premium Personal Care, including digital-first brands, sustained strong growth momentum. The Premium Personal Care portfolio is expected to exit FY26 at an annual recurring revenue (ARR) of more than Rs 350 crore, while the digital-first portfolio is projected to exit the year at over Rs 1,000 crore ARR.

International business performance remained broad-based, with each market delivering double-digit growth.

Bangladesh posted 29% CCG, supported by steady core performance and expansion of new franchises.

Vietnam recorded 22% CCG following a rebound driven by targeted initiatives, while South Africa grew 16% CCG amid recovery in key portfolios.

The Middle East and North Africa (MENA) region posted 17% CCG, and NCD and exports grew 27%.

Among key input costs, copra prices declined about 30% from peak levels and are expected to show a downward bias in the coming months. Vegetable oil prices remained elevated, while crude oil derivatives were described as benign.

During the quarter, Marico also announced a strategic investment in Zea Maize Private Limited, the owner of gourmet snacking brand “4700BC.” The company said it will acquire 93.27% of Zea Maize’s paid-up share capital, with the right to acquire the remaining stake after three years. Founded in 2013, 4700BC’s portfolio includes gourmet popcorn, popped chips, crunchy corn, makhanas and nachos, sold across offline, online and institutional channels.

Commenting on the report findings, Managing Director and CEO Saugata Gupta said, “Our performance in the quarter and year so far reflects the strength of our operating model and the effectiveness of agile execution in driving consistent outcomes. The India business has delivered strong volume and revenue growth, supported by improving trends in core categories and the profitable scaling up of Foods and digital first businesses in line with our strategic priorities. The international business remains a consistent growth engine, delivering broad based performance across markets. Looking ahead, we expect to sustain the healthy volume growth momentum, with profitability strengthening progressively as input cost pressures moderate.”