Motilal Oswal Financial Services has reiterated its BUY rating on Marico Ltd, holding its target price at Rs1,050, based on 50 times projected March 2028 earnings — implying a 20% upside from the stock's current market price of Rs875. The consumer goods major remains one of the brokerage's top picks across its coverage universe.

A Quarter That Ticked Every Box

Marico opened FY27 with consolidated revenue growth of 23% year-on-year, landing precisely in line with the brokerage's expectations. Domestic revenue climbed 21% year-on-year, underpinned by an especially strong 11% volume growth — one of the company's best domestic volume performances in recent years. The international business was no laggard either, delivering 15% constant-currency growth (29% in rupee terms), with broad-based contributions across geographies.

Profitability kept pace with the top line. Gross margin expanded 30 basis points year-on-year to 46.6%, helped along by a meaningful correction in copra prices, while EBITDA climbed 25% year-on-year to Rs8.2 billion, pushing the EBITDA margin up 40 basis points to 20.7%. Profit after tax advanced 25% year-on-year to Rs6.3 billion.

Category Report Card

Watching the Raw Material Tape

International: Vietnam and MENA Lead, Bangladesh Cools

The international portfolio's growth was anything but one-note. Vietnam posted the standout performance with 27% constant-currency growth, powered by robust male and female grooming sales and sustained investment in e-commerce capability. MENA delivered 24% growth, with both the Gulf and Egypt contributing resiliently, while South Africa grew a steadier 8%, led by hair care. Bangladesh, by contrast, cooled to 4% constant-currency growth on a high base, as elevated inflation and the anniversary of last year's price hikes weighed on demand — though management noted the moderation as transient rather than structural.

Notably, Marico's international mix is deliberately diversifying: Bangladesh's share of the international business has already fallen from roughly 50% in FY20 to 45% in FY26, with the brokerage's data pointing to a further decline to around 35% by FY30 as other markets scale.

Digital-First and Premium Bets Gaining Traction

• Quick commerce now contributes approximately 5% of total India business revenue, while all digital channels combined — including digital-first brands — account for over 20% of India revenue.
• The digital-first portfolio, anchored by brands including Purite, Plix, Beardo, and the newly acquired Cosmix, has reached an annualized revenue run rate exceeding Rs11 billion, with Purite already achieving double-digit profitability.
• The newly launched Parachute Advanced Protein Shampoo has posted an encouraging start, with management targeting close to Rs1 billion in revenue from the new shampoo category in FY27.
• India's combined revenue share from Foods and Premium Personal Care stood at approximately 23% in FY26 and is projected to climb to ~27% by FY27 and ~33% by FY30.

The Growth Roadmap Ahead

Management is targeting consolidated revenue crossing Rs150 billion in FY27 and Rs200 billion by FY30, alongside 140-150 basis points of operating margin expansion this fiscal year despite an uncertain input-cost environment. The brokerage models a 13% revenue CAGR and 22% EBITDA CAGR over FY26-28, and has nudged its FY28 EPS estimate higher on the back of the company's lower guided tax rate.

The Bottom Line for Investors

Marico's combination of strong domestic volume growth, expanding margins even amid input-cost volatility, and a maturing digital-first and premium portfolio underpins Motilal Oswal's continued conviction. The stock trades at a premium 52x/46x FY27E/FY28E earnings — a valuation the brokerage believes is justified by the company's stable growth trajectory and diversifying revenue base. The BUY rating and Rs1,050 target price stand, offering 20% upside from current levels.

Sources: Motilal Oswal Financial Services — Marico 1QFY27 Results Update, August 4, 2026; Company filings.