Marico Posts Solid Q4 FY25 Earnings, Announces ₹7 Dividend

FMCG giant Marico Limited has wrapped up the financial year 2024-25 on a strong note, delivering an 8% year-on-year (YoY) growth in its Profit After Tax (PAT) for the fourth quarter. Backed by solid topline growth and strategic brand investments, the company continues to maintain a consistent upward trajectory despite pressure on margins. The board’s recommendation of a final dividend of ₹7 per share reinforces its commitment to shareholder value creation.

As of May 5, 2025, Marico’s shares were trading at ₹724.80 on the National Stock Exchange (NSE), posting a 3.62% gain for the day. With a 38.78% return in the past year and a 148.28% gain over five years, Marico has proven its position as a fundamentally sound investment.

This comprehensive article delves into the Q4 FY25 financials, annual performance, strategic initiatives, and stock market outlook, providing insights for both existing shareholders and prospective investors.

Marico Q4 FY25: Snapshot of Key Financials

Here’s a breakdown of Marico’s Q4 FY25 performance compared to the same period last year:

Growth Driven by Domestic and International Businesses

Marico’s 20% increase in revenue can be attributed to strong growth across both its domestic and international markets. In India, the company continued to gain market share in core categories such as hair oils, cooking oils, and personal care segments. Volumes in premium categories like Parachute Advansed, Saffola, and Livon grew steadily due to increased urban demand and sustained brand recall.

International markets—particularly Bangladesh and the Middle East—also reported double-digit growth. The company’s decision to localize production in some markets and optimize its export logistics helped maintain profitability in foreign markets, even as currency volatility posed challenges.

Profitability and Margin Analysis

While PAT rose by 8%, the EBITDA margin declined from 19.4% to 16.8% YoY. This margin compression reflects a shift in strategy as Marico increased investments in advertising, marketing, and product innovation. Strategic pricing interventions helped partially offset cost pressures from rising input prices.

According to Marico’s management, the decision to front-load A&P (Advertising & Promotion) spending aligns with long-term brand-building goals. The company is betting big on premiumization and is investing heavily in digital campaigns and influencer marketing to target millennial and Gen-Z consumers.

Annual Performance FY25: A Year of Steady Expansion

For the full year ending March 31, 2025, Marico reported a PAT of ₹1,593 crore, marking an 8% growth over the previous fiscal’s ₹1,470 crore. Revenue for the year climbed by 12% to ₹10,831 crore from ₹9,653 crore in FY24.

This growth was driven by:

• Consistent volume uptick in the domestic FMCG segment.

• Launch of new health and wellness products under the Saffola brand.

• Revamp of rural distribution channels through digitized ordering systems.

• Expansion of e-commerce presence, now contributing over 11% of domestic sales.

Dividend Announcement: Rewarding Shareholders

The board has recommended a final dividend of ₹7 per equity share (face value ₹1), rewarding investors for the company’s robust performance. This proposal is subject to approval at the upcoming Annual General Meeting (AGM). Marico has a history of consistent dividend payouts and the current recommendation aligns with its policy of distributing over 75% of free cash flows annually.

Dividend yield stands around 0.97% at the current market price, reinforcing Marico’s position as a stable income-generating stock in addition to capital appreciation.

Operational Highlights

1. Product Innovation

Marico continued launching new SKUs and health-centric products in Q4, including:

• Saffola Oats+ Pro, targeting fitness-conscious consumers.

• Hair & Care Natural Serum, aimed at the premium personal care market.

• Livon Anti-Frizz Mousse, part of the youth-focused styling range.

These new launches are part of the company’s strategy to tap into higher-margin segments and increase customer stickiness.

2. Digital Transformation

Marico reported that its D2C (direct-to-consumer) initiatives showed encouraging growth. E-commerce now makes up over 11% of its domestic sales, up from 8.5% in FY24. The company is also piloting AI-driven demand forecasting tools to enhance supply chain efficiency.

Share Performance and Market Sentiment

Marico’s strong Q4 showing sent its stock up by 3.62% on May 5, 2025, closing at ₹724.80. The stock has had an impressive journey:

• 1-Year Return: 38.78%

• 5-Year Return: 148.28%

• 52-Week High: ₹731

• 52-Week Low: ₹501

These figures highlight the stock’s resilience and growth, outperforming the broader FMCG index and many peers in the consumer sector.

Peer Comparison: FMCG Sector at a Glance

Let’s compare Marico’s Q4 FY25 performance with other major FMCG players:

While Marico’s EBITDA margin is slightly lower, its topline growth has outpaced most peers—indicating strong consumer traction and effective portfolio strategy.

Strategic Outlook for FY26

Marico aims to accelerate growth in FY26 with a three-pronged strategy:

1. Premiumization and Brand Refresh

Targeting premium price segments in categories like skincare, functional foods, and hair styling through product innovation.

2. Rural Distribution Push

Deepening rural reach through Project SETU, which integrates digital platforms with local kirana stores.

3. Sustainability Initiatives

Marico has pledged to become plastic neutral by FY27 and increase the share of renewable energy in its manufacturing plants to 70% by FY26.

Analyst Views and Investment Thesis

Brokerages have largely responded positively to Marico’s Q4 performance:

• Motilal Oswal: Reiterated ‘Buy’ with a target of ₹785, citing growth resilience and brand strength.

• ICICI Securities: Rated Marico as ‘Add’, with a caution on margin pressures but optimism on revenue expansion.

• HDFC Securities: ‘Hold’ with expectations of further margin recovery in H2 FY26.

Investment Takeaway:
For conservative and long-term investors, Marico presents a compelling case with:

• Stable returns

• Dividend income

• Market leadership in multiple categories

• Sustainable business practices

Final Thoughts

Marico’s Q4 FY25 results reinforce its status as a growth-oriented, fundamentally sound FMCG company. With a significant 20% jump in revenue and 8% profit growth, the company has proven its ability to navigate margin pressures while expanding its market footprint. The recommended ₹7 dividend adds to shareholder delight.

In a volatile macroeconomic climate, Marico stands out as a reliable play in India’s consumption story. For investors looking to balance growth with stability, Marico remains a stock worth considering.

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