Motilal Oswal Research has reiterated its Buy rating on Marico Ltd. with a target price of ₹1,000. The brokerage believes the FMCG company is entering another phase of profitable growth, supported by improving domestic volumes, easing raw material costs, premium product expansion and strengthening digital brands.

• Recommendation: Buy
• Target Price: ₹1,000
• Brokerage: Motilal Oswal Research

Marico delivered a strong operational performance during FY26.

• Revenue increased 26%.
• Adjusted PAT grew 11%.
• The company outperformed several FMCG peers despite a challenging consumption environment.

Management has also maintained a positive outlook for FY27, expecting high-single-digit domestic volume growth, double-digit consolidated revenue growth and healthy EBITDA expansion.

One of the biggest positives highlighted by Motilal Oswal is the sharp correction in copra prices, which have declined by nearly 45% from their peak.

Marico has already reduced product prices by around 15–20%, which is expected to improve demand and support double-digit volume growth for the Parachute coconut oil franchise during FY27.

The brokerage expects Saffola to continue improving profitability while maintaining healthy revenue growth. Marico's value-added hair oils also remain one of the company's fastest-growing businesses, with growth exceeding 20% during FY26 and expected to remain strong in FY27.

Motilal Oswal expects Marico's digital-first portfolio to achieve double-digit EBITDA margins by FY27, providing an additional earnings driver.

The brokerage also expects the company's international business to become more diversified. Bangladesh's contribution, which stood at around 50% in FY20, is projected to decline to nearly 35% by FY30 as other international markets gain scale.

Motilal Oswal forecasts a CAGR of approximately:

• 13% in Revenue
• 21% in EBITDA
• 18% in Adjusted PAT

for FY26–FY28, supporting its Buy recommendation and ₹1,000 target price.

Investor Takeaway

Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Marico appears well positioned to benefit from easing raw material costs, improving rural demand and continued premiumisation. Investors should monitor volume growth, operating margins and management commentary over the coming quarters to assess whether the expected earnings recovery remains on track.

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