FMCG major Marico Ltd has reported high single-digit volume growth in its India business for the second quarter of FY2025, defying headwinds from GST-related disruptions and muted rural sentiment. The company’s performance underscores the resilience of its core brands and the effectiveness of its distribution strategy amid regulatory and macroeconomic challenges.
In a quarterly update released on October 6, 2025, Marico said its domestic business witnessed “healthy volume growth in the high single digits,” driven by strong traction in its flagship categories—coconut oil, value-added hair oils, and premium personal care. The company also noted that urban demand remained stable, while rural recovery was gradual but visible.
“Despite temporary disruptions due to GST procedural changes, our India business delivered robust volume growth. This reflects the strength of our brand equity, agility in execution, and continued focus on core portfolios,” the company stated.
Marico India Q2 FY2025 Performance Snapshot
| Metric Category | Q2 FY2025 Outcome | Commentary |
|---|---|---|
| Volume Growth | High single digit (7–9%) | Strong performance despite GST impact |
| Revenue Growth | Mid single digit (5–6%) | Pricing discipline, mix optimization |
| Urban Demand | Stable | Premium categories performed well |
| Rural Demand | Gradual recovery | Supported by targeted promotions |
| International Business | Low single digit growth | Currency volatility, mixed demand |
The GST disruption stemmed from procedural changes in e-invoicing and input credit reconciliation, which temporarily impacted secondary sales and distributor stocking patterns. However, Marico said it was able to mitigate the impact through proactive engagement with channel partners and digital invoicing tools.
The company’s flagship brand Parachute Coconut Oil continued to perform well, maintaining its leadership in the category. Value-added hair oils, including Nihar Naturals and Hair & Care, saw improved traction due to festive demand and regional campaigns. Premium personal care brands such as Beardo and Kaya also contributed to growth, especially in urban markets.
Marico India Portfolio – Category-Wise Q2 Trends
| Category | Performance Summary | Growth Drivers |
|---|---|---|
| Coconut Oil | Stable volume growth | Brand loyalty, price stability |
| Value-Added Hair Oils | Moderate growth | Regional promotions, festive push |
| Premium Personal Care | High growth | Urban demand, digital marketing |
| Foods & Nutrition | Mixed performance | Saffola oats steady, honey subdued |
| Male Grooming | Strong growth | Beardo expansion, influencer tie-ups |
Marico also highlighted its continued investment in digital transformation, with over 85% of its distributor network now integrated into its real-time sales and inventory tracking system. The company is leveraging AI-based analytics to optimize SKU placement, reduce stock-outs, and personalize promotions.
On the cost front, Marico said input costs remained benign, with copra and vegetable oil prices showing stability. This helped maintain gross margins despite subdued topline growth. The company expects margins to improve further in H2, supported by operating leverage and cost rationalization.
Marico Q2 Cost & Margin Analysis
| Cost Component | Q2 Trend | Impact on Margins |
|---|---|---|
| Copra Prices | Stable | Supported coconut oil margins |
| Vegetable Oils | Slight moderation | Helped value-added oils profitability |
| Packaging Materials | Flat | No major cost pressure |
| Advertising Spend | Increased YoY | Focused festive campaigns |
| Operating Expenses | Controlled | Efficiency gains from digitization |
The company’s foods portfolio, anchored by Saffola, saw mixed results. While oats and masala variants maintained momentum, Saffola honey faced competitive pressure and pricing challenges. Marico said it is recalibrating its foods strategy to focus on differentiated offerings and health-forward innovations.
International business, which contributes around 23% of Marico’s consolidated revenue, grew in low single digits due to currency headwinds and uneven demand in key markets like Bangladesh and Vietnam. The Middle East and North Africa (MENA) region showed signs of recovery, aided by improved distributor alignment.
Marico International Business – Regional Performance Q2 FY2025
| Region | Performance Summary | Commentary |
|---|---|---|
| Bangladesh | Flat growth | Currency volatility, competitive intensity |
| Vietnam | Low single digit growth | Channel realignment underway |
| MENA | Moderate recovery | Distributor restructuring completed |
| South Africa | Stable | Hair care portfolio steady |
| Rest of World | Mixed | Seasonal demand, regulatory shifts |
Looking ahead, Marico remains cautiously optimistic about H2 FY2025, citing festive tailwinds, rural recovery, and continued focus on innovation. The company plans to launch new SKUs in the male grooming and foods segments, along with expanding its D2C footprint through Beardo and Just Herbs.
Social media platforms have seen positive buzz around Marico’s performance, with hashtags like #MaricoQ2Growth, #ParachuteStrong, and #SaffolaHealth trending across Twitter/X, Instagram, and LinkedIn. Analysts have praised the company’s ability to navigate regulatory disruptions while maintaining volume momentum.
Public Sentiment – Social Media Buzz on Marico Q2 Performance
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.2M mentions | 80% positive | #MaricoQ2Growth #ParachuteStrong |
| 1.1M interactions | 85% supportive | #SaffolaHealth #BeardoBuzz | |
| 950K views | 78% optimistic | #MaricoIndiaUpdate #HairCareTrends | |
| 870K views | 82% analytical | #FMCGResilience #MaricoPerformance |
Experts say Marico’s ability to deliver high single-digit volume growth amid GST disruption reflects its operational agility and brand strength. “Marico has shown that execution excellence and digital integration can offset macro challenges. It remains one of the most consistent performers in the FMCG space,” said Dr. Ritu Sharma, consumer analyst at CRISIL.
In conclusion, Marico’s India business has demonstrated resilience and adaptability in Q2 FY2025, posting high single-digit volume growth despite GST-related disruptions. With strong brand equity, digital capabilities, and a diversified portfolio, the company is well-positioned to capitalize on festive demand and rural recovery in the coming quarters.
Disclaimer: This article is based on publicly available corporate updates, verified financial data, and expert commentary. It does not constitute investment advice or stock recommendation. Readers are advised to follow official filings and investor presentations for accurate financial disclosures.
