Marico ad spends rise 15% in Q3 FY26 to Rs 336 crore

Parachute oil maker Marico Ltd on Tuesday reported a double-digit year-on-year rise in consolidated profit after tax for the third quarter of FY26, aided by strong revenue growth, improved demand conditions and pricing interventions across key portfolios.

The consumer goods major’s net profit rose to Rs 447 crore in Q3 FY26, compared with Rs 399 crore in the year-ago period. For the nine months ended December, Marico’s profit stood at Rs 1,371 crore, up 7% year-on-year.

Revenue from operations jumped 27% YoY to Rs 3,537 crore during the quarter, from Rs 2,794 crore in Q3 FY25. The company said the growth was driven by sequential improvement in underlying volume growth, supported by pricing actions taken over the past year to offset inflation in key input costs.

Marico’s advertising and promotional spend increased 15% to Rs 336 crore, up from Rs 293 crore in Q3 FY25, accounting for 9.5% of total revenue. The company said the higher spends were aimed at strengthening the long-term brand equity of its core and emerging franchises.

EBITDA rose 11% YoY to Rs 592 crore in Q3 FY26. However, EBITDA margin declined to 16.7%, compared with 19.1% in the corresponding quarter last year.

The company noted that demand conditions remained strong during the quarter, supported by low inflation, improved affordability following GST rate rationalisation, higher minimum support prices (MSPs) and a healthy rabi sowing season. It also saw an improvement in traditional trade, alongside continued growth in quick commerce and e-commerce channels. More than 95% of the portfolio either gained or sustained market share during the quarter.

Internationally, Marico said its overseas business maintained a double-digit growth trajectory, delivering 21% constant currency growth. Vietnam and South Africa rebounded strongly, aided by targeted initiatives implemented over the past few quarters.

Among key brands, Parachute posted 50% revenue growth during the quarter, aided by a 30% decline in copra prices from peak levels. While near-term growth is expected to remain steady, the company anticipates a gradual pickup in volumes over the next year on the back of easing consumer prices, strong brand equity and robust distribution.

Value-added hair oils recorded 29% value growth, with the company reiterating confidence in sustaining double-digit growth driven by innovation in the mid and premium segments. However, Saffola edible oils saw a softer quarter, with Marico expecting the brand to return to a healthier growth trajectory in the coming quarters.

Marico said its premium personal care portfolio, including premium hair nourishment, male grooming and skincare, is expected to exit FY26 at over Rs 350 crore in annualised revenue run rate (ARR), while its digital-first portfolio is projected to cross Rs 1,000 crore ARR.

Outlook

Looking ahead, Marico said it expects strong consumption trends across categories, supported by favourable macroeconomic indicators and the possibility of further stimulus in the upcoming Union Budget. While near-term input cost pressures persist, the company expects steady growth across its four core categories, aided by initiatives to support general trade partners and expanded direct reach under Project SETU. It also plans to drive incremental growth through urban-centric and premium portfolios across organised retail and e-commerce channels.