Why Is Motilal Oswal Bullish on Marico’s Growth Outlook for FY26?
About Motilal Oswal’s View on Marico
Motilal Oswal Financial Services (MOSL) has reiterated its Buy rating on Marico Ltd. with a target price of ₹850. The brokerage expects the FMCG player to deliver a healthy revenue growth trajectory, aided by a combination of Parachute pricing actions, robust VAHO (Value-Added Hair Oil) recovery, and a steady performance from its international portfolio.
📈 Revenue Growth: 30% YoY expected
🛢️ Driver: Parachute price hike amid copra inflation
💇♀️ VAHO Segment: 18% YoY growth expected (vs 10% earlier)
🌏 International Business: 23% YoY CC growth (vs 16% earlier)
🥣 Saffola: 24% YoY growth on track
💹 Margins: Pressure to ease from H2FY26 onwards
Marico’s near-term outlook remains robust despite modest Parachute volume decline, as the price-led growth continues to drive revenue expansion. The company’s ability to pass on copra cost inflation and sustain margin protection measures has reaffirmed investor confidence.
Short-term traders frequently study Nifty Advisory Forecast to gauge overall FMCG sector sentiment, especially during volatile commodity cycles.
Segment-Wise Performance Expectations
💡 VAHO: Momentum improving due to successful relaunches and new SKU rollouts; expected to post 18% YoY growth.
💡 International: Strong growth from Bangladesh and Vietnam driving 23% YoY increase in constant currency terms.
💡 Saffola: Health foods portfolio continues steady 24% YoY growth; brand resilience remains intact.
💡 Margins: Easing copra inflation expected to boost gross margin trajectory from H2FY26.
MOSL notes that the company’s focus on innovation, rural penetration, and improved ad spends will help sustain topline growth despite inflationary pressure on input costs. The brokerage anticipates normalized growth patterns across its flagship and premium categories over the next few quarters.
Derivative traders also assess Bank Nifty SEBI Registered Advisory to align their equity positioning with broader sectoral momentum.
Valuation and Investment Rationale
🧾 Financial Health: Strong cash flows and disciplined working capital cycle continue to support strategic investments.
💬 Management Guidance: Focus remains on sustaining mid-teen volume growth and expanding market share in urban premium segments.
⚙️ Outlook: Stable demand across core categories and resilient pricing power make Marico a key defensive pick in the FMCG basket.
The brokerage’s bullish tone reflects confidence in Marico’s brand equity, supply-chain resilience, and distribution efficiency. MOSL expects strong recovery in domestic consumption patterns to drive sustained earnings momentum in FY26–27.
Investor Takeaway
Motilal Oswal’s outlook suggests that Marico is well-positioned to benefit from easing input costs and continued brand-led pricing power. With copra inflation stabilizing and the company’s innovation pipeline expanding, the next phase of growth appears both sustainable and profitable. Investors seeking a steady compounder in the FMCG space may view this as a long-term accumulation opportunity.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Related Titles
Why Is Motilal Oswal Optimistic on Marico’s FY26 Recovery?
How Will Copra Inflation Impact Marico’s Growth in the Coming Quarters?
