Marico’s shares surged 4% in morning trade after the company reported robust earnings for the quarter ended March 31, 2025. As of 9:25 AM, the shares were trading 4.29% higher at Rs 727.70.
The consumer goods giant posted a consolidated net profit of ₹345 crore, marking a 7.8% increase from ₹320 crore in Q4 FY24.
Revenue from operations stood at ₹2,730 crore, up 19.8% year-on-year compared to ₹2,278 crore in Q4 FY24. Total income also saw significant growth, reaching ₹2,777 crore, up from ₹2,293 crore in the same quarter last year.
The company faced higher material costs and increased advertisement spending, resulting in total expenses rising to ₹2,336 crore. Despite these challenges, Marico posted a profit before tax of ₹441 crore, compared to ₹399 crore in Q4 FY24.
For the full fiscal year FY25, Marico’s performance remained strong, with revenue from operations rising to ₹10,831 crore, up from ₹9,653 crore in FY24. Net profit increased to ₹1,658 crore, compared to ₹1,502 crore in the previous year.
In the meantime, Morgan Stanley has maintained its ‘Equal-weight’ rating on Marico with a target price of ₹674, adopting a neutral outlook. The company reported a 7.8% YoY rise in Q4FY25 net profit, totaling ₹345 crore, while revenue surged 19.8% YoY to ₹2,730 crore. This growth was driven by strong volume growth in India and robust international performance. However, EBITDA growth was muted at 3.6% YoY, with margins contracting to 16.8% from 19.4% due to higher input costs and increased advertising expenses.
Marico plans to continue pricing actions in FY26, especially in its core portfolio. The company is focusing on expanding its food business by 25% annually and targeting premium personal care segments to contribute over 25% of revenues by FY27. Its digital-first brands, such as Beardo, are also expected to grow significantly.
While Morgan Stanley sees these new segments as key growth drivers, it believes much of the medium-term upside may already be priced in and is awaiting clearer margin recovery trends before becoming more positive on the stock.
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