Marico Share Price: Should You Buy, Sell, or Hold This FMCG Stock After Q3 Results?

Synopsis: Marico Limited reported strong Q3 FY26 results with solid revenue and profit growth. Brokerages remain positive, citing steady India volumes, improving margins, strong international performance, and long-term growth in foods and digital-first brands.

This Large-cap FMCG stock, engaged in manufacturing and marketing hair care, skin care, wellness, and edible oil products under brands like Parachute and Saffola, jumped 1.35 percent after the company reported its strong December quarterly results, while brokerages shared positive views on its future outlook.

this With a market capitalization of Rs. 95,058.96 crores, the share of Marico Limited has reached an intraday high of Rs. 756 per equity share, rising nearly 1.35 percent from its previous day’s close price of Rs. 745.90. Since then, the stock has retreated and is currently trading at Rs. 725 per equity share. 

Q3 FY26 Result

Coming into the quarterly results of Marico Limited, the company’s consolidated revenue from operations increased by 26.59 percent YOY, from Rs. 2,794 crore in Q3 FY25 to Rs. 3,537 crore in Q3 FY26, and grew by 1.58 percent QoQ from Rs. 3,482 crore in Q2 FY26.

Marico Limited generated 75.80 percent of its revenue from India and 24.20 percent from international markets in Q3 FY26. Further, the company’s EBITDA has increased by 11.07 percent, from Rs. 533 crore in Q3 FY25 to Rs. 592 crore in Q3 FY26. 

In Q3 FY26, Marico Limited’s consolidated net profit increased by 13.30 percent YOY, reaching Rs. 460 crore compared to Rs. 406 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 6.48 percent, from Rs. 432 crore.

The basic earnings per share increased by 12.01 percent and stood at Rs. 3.45 as against Rs. 3.08 recorded in the same quarter in the previous year, FY2025. Marico Limited’s revenue and net profit have grown at a CAGR of 8.17 percent and 9.71 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 45.2 percent and 41.3 percent, respectively. Marico Limited has an earnings per share (EPS) of Rs. 13.2, and its debt-to-equity ratio is 0.14x.

Brokerage Viewpoint

Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Marico Limited, with a revised and increased its target price to Rs. 900 per share from Rs. 880 per share, indicating an upside potential of 24.14 percent from its current price

Jefferies maintains a Buy rating on Marico due to continued strong growth across key categories. Price hikes in Parachute were absorbed well with resilient volumes, while VAHO and premium personal care delivered solid momentum. Although the food segment was softer, strong double-digit growth in the international business and stable overall performance support confidence in the target price.

Similarly, Morgan Stanley, a prominent brokerage firm, has recommended an “Equal-weight” call on Marico Limited, with a target price of Rs. 788 per share, indicating an upside potential of 8.69 percent from its current price

Morgan Stanley has maintained an Equal-weight rating on Marico, as its Q3 performance was largely in line with expectations. The management has reiterated its guidance, targeting mid-teens EBITDA growth by FY27 along with a healthy margin expansion of 150-200 basis points. For FY26, Marico expects revenue growth of over 25 percent, supported by steady execution and improving operating leverage.

In India, volume growth is expected to remain stable as pricing growth eases. Management is confident of handling any copra price correction through lower channel inventory. The VAHO segment is likely to continue delivering double-digit growth, while the foods business is expected to recover and return to double-digit organic growth in the coming quarters.

Management Guidance

Marico Limited management expects strong growth in its Foods business, targeting over 25 percent annual growth to reach nearly eight times its FY20 revenues by FY27. The company also plans to scale its digital-first brands to about 2.5 times FY24 annual recurring revenue by FY27, higher than its earlier target, showing confidence in this portfolio.

Foods and Premium Personal Care currently contribute around 22 percent of India’s revenues, which management expects to rise to about 25 percent by FY27. Within digital-first brands, Beardo is expected to achieve double-digit EBITDA margins this year, while Plix should deliver single-digit margins. Overall, Marico aims to reach double-digit EBITDA margins across the digital-first portfolio by FY27.

Marico Limited was established on October 13, 1988, initially as Marico Foods Ltd and is a leading Indian multinational consumer goods company headquartered in Mumbai. It focuses on everyday personal care and wellness products, making popular brands like Parachute for hair oil, Saffola for healthy edible oils and foods, Livon for hair serums, and others for skin care, male grooming, and fabric care.

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