Marico reports 14.7% YoY increase in ad spends in Q3 FY26

FMCG brand Marico has announced its financial results for Q3 FY26. The company reported a 14.7% YoY increase in advertising and promotion spends, rising to Rs 336 crore in the quarter from Rs 293 crore in the same period last year. On a sequential basis, however, ad spends declined marginally by 2.6% compared to Rs 345 crore in the previous quarter.

In the third quarter, revenue from operations stood at Rs 3,537 crore, up 27% YoY, with underlying volume growth of 8% in the India business and currency growth of 21% in international business.

The India business revenues stood at Rs 2,681 crores, up 28% YoY, on the back of a sequential improvement in underlying volume growth supplemented by pricing interventions across core portfolios over the last 12 months, in response to inflation in key input costs.

While e-commerce and quick commerce continued to lead growth, the business witnessed improved traction in traditional trade. Offtake growth also remained strong, with more than 95% of the business gaining or sustaining market share and ~80% of the business gaining or sustaining penetration, both on MAT basis.

The international business sustained its robust growth trajectory with 21% constant currency growth, with each market delivering broad-based double-digit growth. Vietnam and South Africa rebounded smartly on the back of targeted initiatives over the last few quarters. 

Saugata Gupta, MD & CEO, commented, “Our performance in the quarter and year so far reflects the strength of our operating model and the effectiveness of agile execution in driving consistent outcomes. The India business has delivered strong volume and revenue growth, supported by improving trends in core categories and the profitable scaling up of Foods and digital first businesses in line with our strategic priorities. The international business remains a consistent growth engine, delivering broad based performance across markets. Looking ahead, we expect to sustain the healthy volume growth momentum, with profitability strengthening progressively as input cost pressures moderate.”

Parachute Rigids’ volumes declined 1% during the quarter. However, underlying volumes, adjusted for ml-age reductions, grew 2%, indicating limited price sensitivity. Revenue growth for the brand stood at 50%.

Value-Added Hair Oils recorded 29% value growth in the quarter. The portfolio gained 170 bps in value market share on a MAT basis, reaching around 30%.

Saffola Edible Oils saw a subdued quarter amid a higher pricing environment. Revenue growth remained flat as the impact of earlier price increases normalised during the quarter. The brand will continue to focus on premium offerings within the portfolio, including the recently launched Cold Pressed Oils.

Foods grew 5% YoY, aligned with the company’s focus on improving franchise profitability as the business scales. Saffola Oats continued to gain market share on a MAT basis and remained the leading oats brand. The company expects growth to pick up in the coming quarters.

Premium Personal Care, including the digital-first portfolio, maintained strong growth. The portfolio spanning Premium Hair Nourishment, Male Grooming and Skin Care is expected to exit FY26 with an ARR of over Rs 350 crore. The digital-first portfolio is projected to end the year with an ARR exceeding Rs 1,000 crore.

Bangladesh posted 29% CCG, supported by a steady core business and rapid scale-up of new franchises. Vietnam rebounded to 22% CCG and is expected to maintain double-digit growth momentum ahead. MENA delivered 17% CCG as the Hair Care portfolio continued to scale up. South Africa recorded 16% CCG, driven by recovery in key portfolios. NCD and Exports grew 27%.