Marico Ltd Q2FY26 – When Parachute Becomes the Real King of Coconut Kingdom, and Saffola Runs the Wellness Empire
1. At a Glance
Marico Limited – the FMCG magician that turned coconut oil into an empire – just reported yet another quarter that shows what happens when you mix strong brand power with desi household loyalty. As of November 2025, the company stands tall with a market cap of ₹96,073 crore and a stock price of ₹740. The latest Q2FY26 (September 2025) results show sales of ₹3,482 crore, up 30.7% YoY, while PAT came in at ₹432 crore, down slightly by 0.7% YoY — the FMCG version of “everything fine, but margins are on a diet.”
ROCE is a juicy 45.2%, ROE an elite 41.3%, and dividend yield a healthy 1.43% — clearly, the company is squeezing coconuts and profits with equal precision. The only thing higher than Marico’s P/E of 57.7 is perhaps the number of Saffola oats ads you’ve seen this week. With Parachute, Saffola, Livon, Set Wet, Beardo, and True Elements, Marico runs half of India’s bathrooms and kitchens.
2. Introduction
If FMCG were cricket, Marico would be that consistent opener who doesn’t always hit sixes but keeps the scoreboard ticking every over. With over 25 countries in its global presence, and 5.6 million retail outlets in India, it’s hard to imagine a shelf where Parachute hasn’t left its oily fingerprints.
Over the decades, Marico has evolved from “that coconut oil company” to a diversified wellness empire spanning edible oils, oats, serums, male grooming, and even digital-first wellness brands. Its star child Saffola has moved from just being the “heart oil” to becoming the mascot of “Instagram fitness.”
But FY26 hasn’t been a straight runway. Inflation, muted rural recovery, and input cost volatility have tested FMCG royalty. Still, Marico’s ability to hold No.1 positions across six core categories — Coconut Oil (62% MS), Parachute Rigids (52%), Saffola Oats (41%), VHO (27%), Leave-on Serums (53%), Hair Styling (52%) — proves it knows exactly which scalp and stomach to target.
While competitors play musical chairs with margins, Marico continues to balance tradition (Parachute) with transformation (True Elements, Just Herbs, Beardo). The company is no longer just about oil; it’s about owning your “morning-to-night routine” — from breakfast oats to bedtime moisturizer.
3. Business Model – WTF Do They Even Do?
Marico’s business model is simple yet slick — take essential household categories, brand them like luxury, distribute them like oxygen, and collect profits like rent. The company operates across three main pillars:
Coconut & Edible Oils (52% of revenue) – The evergreen Parachute leads India’s coconut oil market with a 62% share. Add Saffola, the elite edible oil for calorie-conscious aunties and gym bros, and you get an unbeatable combination of brand trust and pricing power.
Value-Added Hair Oils & Personal Care (20%) – Brands like Parachute Advansed, Nihar, Hair & Care, Livon, and Set Wet cater to every mood, from “Sunday champi” to “office-ready gel.”
Foods & Digital Wellness (28%) – This is where Marico is flexing new muscles: Saffola oats, FITTIFY, True Elements (now a 100% subsidiary after the FY26 acquisition), and Coco Soul coconut-based foods.
The company has cracked India’s largest FMCG code: sell aspiration in sachets. Its reach across urban and rural India ensures volume stability, while premium sub-brands and digital-first entries keep growth alive.
And yes, they’re doing it sustainably — 67% of power usage from renewable energy and a net-zero emissions goal in sight. Not bad for a company that started with coconuts and ambition.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
Same Qtr Last Yr (Sep’24)
Previous Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹3,482 Cr
₹2,664 Cr
₹3,259 Cr
+30.7%
+6.8%
EBITDA
₹560 Cr
₹522 Cr
₹655 Cr
+7.3%
-14.5%
PAT
₹432 Cr
₹433 Cr
₹513 Cr
-0.2%
-15.8%
EPS (₹)
3.24
3.27
3.89
-0.9%
-16.7%
Annualised EPS = ₹3.24 × 4 = ₹12.96 At CMP ₹740, P/E = 57.1x — premium pricing for a premium pantry stock.
Commentary: The top line is flexing like a bodybuilder, but the margins? Slightly shy. Input costs and ad spends (around 10% of sales) kept EBITDA under pressure. But hey, Marico’s loyalists aren’t going anywhere — you can’t replace Saffola with sunflower oil overnight.
5. Valuation Discussion – Fair Value Range Only
Let’s get nerdy (and mildly dramatic).
A. P/E Method: Annualised EPS = ₹12.96 Industry P/E = ~25.7 Marico’s brand premium justifies 40–50x band. Fair Value Range (P/E Method): ₹520 – ₹650 per share.
B. EV/EBITDA Method: EV = ₹96,215 Cr EBITDA (FY25) = ₹2,206 Cr EV/EBITDA = 43.6x Peer average = 25–30x If normalized, EV/EBITDA 30x → EV = ₹66,180 Cr → FV
