Marico’s Q3 margins find relief as copra prices ease

Shares of Marico Ltd shares hit a fresh 52-week high of ₹775.20 on Monday, as its December-quarter (Q3FY26) update suggests the worst of margin pressures may be behind.

- Manvi Agarwal [e-mail]

Copra prices have eased roughly 30% from peak and are expected to trend lower in the coming months, ahead of the flush season. While margins may still decline year-on-year, they are likely to rise sequentially after hitting multi-quarter lows in Q2.

JM Financial Institutional Securities estimates Q3 gross margin at around 44%, up 135 basis points sequentially, with Ebitda margin rising to 16.5%. Operating profit growth for Q3 is projected in double digits, improving from mid-single-digit growth in H1FY26. In H1, Ebitda margin had fallen 360 bps year-on-year to 18.1%, primarily due to steep copra price inflation.