Marico projects double‑digit Q2 revenue growth on premium hair‑oil demand

⚡ Key Financial Takeaways

Marico anticipates double‑digit consolidated revenue growth for Q2 FY24.

Its value‑added hair‑oil segment posted growth in the twenties for six consecutive quarters.

India volume growth hit double digits, while overseas sales rose in the teens on a constant‑currency basis.

Copra prices remain about 35% below their recent peak, easing input‑cost pressure.

💡 Why It Matters

Marico’s upbeat revenue outlook highlights the accelerating premiumisation of Indian consumer spending, a trend that benefits brands positioned at the higher end of the market. The company’s ability to sustain double‑digit growth while raw‑material costs remain subdued could pressure competitors to enhance their premium offerings and manage input costs more aggressively.

Revenue outlook buoyed by premium products Marico Ltd. announced on Monday that it expects its consolidated revenue for the second quarter to expand by double‑digit percentage points. The guidance is underpinned by robust demand for the company’s higher‑end, value‑added hair‑oil portfolio, which includes premium and specialised formulations.

Consistent growth in the hair‑oil segment The value‑added hair‑oil line has recorded growth rates in the twenties for six straight quarters, signalling sustained consumer appetite for premium personal‑care products. Marico’s flagship brands – Parachute coconut oil and Saffola edible oils – continue to benefit from this trend.

Domestic volume expansion In its Indian operations, Marico reported underlying volume growth that also touched double digits. The rise reflects a broader shift among Indian shoppers toward higher‑priced, perceived‑quality items across categories such as food and personal care.

International markets add momentum On a constant‑currency basis, the company’s overseas business grew in the teens. Strong performance was noted in Vietnam, the Middle East and South Africa, while Bangladesh showed a modest sequential improvement.

Input‑cost advantage The cost of copra, a key raw material for Marico’s coconut‑oil products, stayed roughly 35% below its recent peak, providing a cushion against margin erosion.

Outlook Marico’s guidance suggests that premiumisation is translating into tangible top‑line growth, while favourable raw‑material pricing supports profitability. The company will release its full quarterly results later this month, which will confirm whether the projected growth materialises.

--- *The information above is based on Marico’s own statements and does not constitute investment advice.*

🏛️ Background & Context

India’s middle class is expanding, and disposable incomes are rising, prompting shoppers to shift from mass‑market to premium personal‑care and food products. Marico, a long‑standing player with heritage brands like Parachute and Saffola, has been repositioning its portfolio to capture this shift, especially through value‑added hair‑oil variants that command higher margins.