(Reuters) -Indian consumer goods maker Marico reported quarterly profit above analysts’ expectations on Friday, boosted by improving rural demand and price increases for its key packaged oil brands.
Its consolidated net profit rose 8% to 3.43 billion rupees ($40.6 million) in the January-March quarter, beating analysts’ average estimate of 3.34 billion rupees, according to data compiled by LSEG.
Marico said it would aim to post double-digit growth in its operating profit for the fiscal year that started on April 1.
Packaged oil, considered household staples in India, has been relatively resilient to an inflation-led slowdown in branded consumer goods sales for the last few quarters, despite the makers raising prices to counter higher raw material costs.
Sales of Marico’s ‘Saffola’ edible oil rose 26% year-on-year in India for the fourth quarter, while the ‘Parachute’ brand of coconut oil grew 22%.
Together, they make up more than half of Marico’s revenue in India, which accounts for three-fourths of its topline.
India’s rural areas, in particular, which account for over a third of overall consumer goods sales, have been a bright spot for urban-centric Marico and its peers struggling with a spending slowdown in large cities.
“Consumer sentiment remained stable amidst improving demand in rural,” Marico said in a presentation, adding it plans to expand its presence in villages across the country.
Its revenue rose 20%, led by price hikes, to 27.30 billion rupees, with overall volumes from the Indian business growing 7%.
“Despite the inflationary trend, there has been a good volume growth. That’s a positive to take away from Marico’s results,” said Akshay D’Souza, an independent consumer goods consultant.
India’s AWL Agri Business, previously known as Adani Wilmar, raised its forecast for fiscal 2026 sales volumes earlier in the week, betting on delivery boom and easing inflation.
($1 = 84.47 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Sonia Cheema and Shreya Biswas)
