Marico (MRCO IN) – Q3FY26 Result Update – Healthy demand and margin outlook – Accumulate
Published on 27 Jan 2026
Copra prices have corrected by ~30% from peak levels and are likely to remain benign in the near term. MRCO is looking at calibrated price cuts but is also looking at margin restoration. We expect margins to improve over FY26-28, driven by 1) benign copra prices 2) premiumization supported by strong momentum in B2C and Foods and 3) revival in higher margin VAHO business. We factor in ~310bps margin expansion over FY26–FY28 and estimate a CAGR of 15.6% in EPS over FY26-28. We value MRCO at 48x Dec27 EPS and assign a target price of Rs 801 (no change). Retain Accumulate.
