Marico shares rise 3% on Q2 business update; Nuvama bullish on volume growth
Marico's Q2 FY27 quarterly update said domestic demand remained resilient during the quarter, although the operating environment remained volatile.
- Oct 5, 2026,
- Updated Oct 5, 2026 4:26 PM IST
Shares of FMCG major Marico Ltd rose 3% on Monday after brokerage Nuvama Institutional Equities retained its 'Buy' rating on the stock with a target price of Rs 1,015, implying nearly 30% upside from the brokerage's reference price of Rs 781. Nuvama said Marico's Q2 FY27 business update was strong, with consolidated revenue and EBITDA in line, while domestic volume growth was marginally ahead of its estimate.
According to Nuvama, overall volumes are expected to grow around 10% year-on-year (YoY), led by Parachute, where volumes are forecast to grow around 14% YoY, marking a 21-quarter high. The brokerage expects Value Added Hair Oils (VAHO) revenue to grow 23% YoY, while Saffola Oils volumes are expected to decline even as revenue grows around 5%. Nuvama expects Marico's international business to grow around 15% YoY in constant-currency terms and said gross margin should improve strongly YoY. It also noted that the stock trades at 45x/38x FY27E/FY28E PE.
Following the development, Marico shares touched a high of Rs 800, up 2.55% from the previous close of Rs 780.10. Later, the stock closed 1.35% higher at Rs 790.65.
Separately, Marico's Q2 FY27 quarterly update said domestic demand remained resilient during the quarter, although the operating environment remained volatile. The company said its India business delivered underlying volume growth touching double digits, with Parachute Coconut Oil reporting early-teens volume growth.
Marico said Saffola Oils delivered mid-single-digit price-led growth, while volumes declined as the company focused on maintaining threshold profitability and rationalised supply of select variants. VAHO delivered growth touching the twenties for the sixth consecutive quarter, supported by investments in the mid and premium segments, enhanced direct reach through Project SETU and growth in the Almond category.
Marico expects consolidated revenue to grow in double digits, supported by its core, digital and international portfolios. It said crude-linked derivative costs had increased further, while copra prices remained range-bound at around 35% below peak levels. The company expects strong year-on-year gross-margin acceleration, supported by a favourable portfolio mix and copra tailwinds, while operating profit is expected to grow in the mid-twenties.
Shares of FMCG major Marico Ltd rose 3% on Monday after brokerage Nuvama Institutional Equities retained its 'Buy' rating on the stock with a target price of Rs 1,015, implying nearly 30% upside from the brokerage's reference price of Rs 781. Nuvama said Marico's Q2 FY27 business update was strong, with consolidated revenue and EBITDA in line, while domestic volume growth was marginally ahead of its estimate.
According to Nuvama, overall volumes are expected to grow around 10% year-on-year (YoY), led by Parachute, where volumes are forecast to grow around 14% YoY, marking a 21-quarter high. The brokerage expects Value Added Hair Oils (VAHO) revenue to grow 23% YoY, while Saffola Oils volumes are expected to decline even as revenue grows around 5%. Nuvama expects Marico's international business to grow around 15% YoY in constant-currency terms and said gross margin should improve strongly YoY. It also noted that the stock trades at 45x/38x FY27E/FY28E PE.
Following the development, Marico shares touched a high of Rs 800, up 2.55% from the previous close of Rs 780.10. Later, the stock closed 1.35% higher at Rs 790.65.
Separately, Marico's Q2 FY27 quarterly update said domestic demand remained resilient during the quarter, although the operating environment remained volatile. The company said its India business delivered underlying volume growth touching double digits, with Parachute Coconut Oil reporting early-teens volume growth.
Marico said Saffola Oils delivered mid-single-digit price-led growth, while volumes declined as the company focused on maintaining threshold profitability and rationalised supply of select variants. VAHO delivered growth touching the twenties for the sixth consecutive quarter, supported by investments in the mid and premium segments, enhanced direct reach through Project SETU and growth in the Almond category.
Marico expects consolidated revenue to grow in double digits, supported by its core, digital and international portfolios. It said crude-linked derivative costs had increased further, while copra prices remained range-bound at around 35% below peak levels. The company expects strong year-on-year gross-margin acceleration, supported by a favourable portfolio mix and copra tailwinds, while operating profit is expected to grow in the mid-twenties.