Marico (MRCO IN) – Q1FY27 Result Update – Strong growth outlook despite input cost headwinds – ACCUMULATE
Published on 04 Aug 2026
MRCO has sustained strong momentum across Parachute, VAHO, Saffola Foods and B2C food and BPC brands. MRCO has guided sales of more than Rs150bn and 150bps margin expansion in FY27. It has given 2030 vision of Rs200bn sales with 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. MRCO expect share of Foods, premium personal care, B2C and digital portfolio to increase from 37% to 50% by FY30.
While we expect margins to improve YoY, QoQ margins might be under pressure given 15% rise in Copra prices from bottom and increase in prices of other inputs like HDPE, LLP and Rice bran oil. We factor in ~220bps margin expansion and a CAGR of 20.6% in EPS over FY26-28. We value MRCO at 46x Jun28 EPS and assign a target price of Rs 940 (Rs876 earlier). Retain Accumulate.
