Marico share: HSBC bullish, Morgan Stanley cautious on FY26 outlook and margin recovery

Shares of Marico Ltd. will be in focus as top brokerages — HSBC and Morgan Stanley — have shared their views following the company’s Q1FY26 performance and forward guidance. While HSBC has maintained a ‘Buy’ rating with a target price of ₹850, Morgan Stanley remains ‘Equal-weight’ with a target of ₹674, reflecting a more cautious stance.

Morgan Stanley: Margin headwinds to peak in H1FY26

Rating: Equal-weight | Target Price: ₹674
Morgan Stanley highlighted that Marico expects 25% revenue growth in FY26, supported by high-single digit volume and EBITDA growth.

Among business segments, management has guided for double-digit value growth in the VAHO (Value Added Hair Oils) segment and over 25% growth in its Foods and digital-first portfolio. The brokerage noted that the full impact of Parachute price hikes will reflect in Q2, but pricing growth is expected to moderate in the second half.

Margins are likely to face their peak pressure in the first half of FY26, with an expected easing trend in H2, according to the management.

HSBC: Margin volatility remains, but long-term view intact

Rating: Buy | Target Price: ₹850
HSBC noted a 1% EBITDA beat in Q1FY26, with steady volume growth and improvement in VAHO. While copra price volatility remains elevated, the company maintained its broader growth outlook.

The brokerage has lowered its FY26 PAT estimate by 4.7%, citing margin headwinds, but raised its FY28 estimate by 1%, reflecting confidence in the long-term earnings trajectory. Importantly, FY25–27 growth guidance remains unchanged.

Summary of brokerage views on Marico:

Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.