Marico (MRCO IN) – Q4FY26 Result Update – Healthy growth outlook despite macro headwinds – ACCUMULATE
Published on 05 May 2026
We are increasing FY27/28 EPS estimates by 3.8/3.3% following led by 1) guidance of sustaining high single digit volume growth 2) healthy near-term demand outlook and continued GST led gains 2) margin recovery due to 35% decline in copra prices and 3) sustained traction in foods/FMCG and digital first brands and 4) rising share of premium products in portfolio (44% in FY27 and 50% in FY30). MRCO in vision 2030 has guided for double digit sales and mid-teens EBIDTA CAGR led by steady growth in core portfolio, strong double-digit growth in Foods/PC and Digital First portfolio and improving margin trajectory. We believe MRCO has executed the sales transformation strategy led by focusing on foods and acquisitions in the B2C foods/PC portfolio. We note that declining share of sales from Bangladesh (from 50% of IBD in FY20 to 35% by FY30) will improve the overall health of IBD. We factor in ~340bps margin expansion and a CAGR of 18% in EPS over FY26-28. We value MRCO at 46x Mar28 EPS and assign a target price of Rs 875. Retain Accumulate.
