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JPMorgan keeps Marico at overweight, Rs 915 target implies ~16% upside after Q2 update
JPMorgan kept Marico at overweight with a target price of Rs 915, implying nearly 16% upside, after the company's Q2 update showed double-digit revenue growth, double-digit volume growth and mid-20s operating profit growth. Saffola grew mid-single digit.
The numbers
Figures from NDTV Profit
| Q1 FY27 net profit: | Rs 630 crore |
|---|---|
| Q1 FY27 consolidated revenue growth: | 22.9% |
| Q1 FY27 consolidated revenue: | Rs 3,957 crore |
| Q1 FY27 EBITDA: | Rs 819 crore |
| Q1 FY27 EBITDA margin: | 20.7% |
Why it matters to operators and investors
Marico is growing double-digit on volume, not just price, while Saffola is only up mid-single digit, so rivals should expect the company to push shelf space and distribution through the rest of its portfolio and should watch where Saffola is losing ground.
What to watch next
- Q3 FY27 results showing revenue and volume growth still in double digits
- EBITDA margin versus the 20.7% Q1 FY27 level
- Saffola growth moving above or falling below mid-single digit
- Target-price changes from other brokers relative to Rs 915
- Marico's share price closing the ~16% gap to the target
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Marico management is likely to keep stressing volume-led growth and margin delivery in its next results commentary, using the Q2 update as proof the Q1 FY27 run-rate was not a one-off.
- Other brokerages covering Marico are likely to align their estimates with the double-digit growth and mid-20s operating profit growth, with some moving targets toward JPMorgan's Rs 915.
- Rival FMCG companies in edible oils and hair care may step up promotions to defend share against Marico's volume momentum, with Saffola the most contested category.
- Institutional investors are likely to hold or add to Marico on the overweight call, and the stock will probably trade on the next margin print rather than on the rating itself.
- JPMorgan is likely to revisit its Rs 915 target only after the next quarterly results, adjusting for margin and Saffola trends.
The source
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