Marico: Post-Results Rally Tests Resistance Zone🔍 Technical Analysis
Marico Limited showcases an impressive wealth creation journey spanning two decades. The stock has delivered a super bullish rally from less than ₹12 to reaching ₹720 by 2024 - representing an extraordinary 60x growth over 20 years.
Since 2024, the ₹720-₹760 zone has acted as formidable resistance, tested multiple times without a decisive breakout. On November 14, 2025, the company announced its Q2 FY26 results. Responding to positive sales numbers showing 31% revenue growth, the stock shot up 2% and is now trading at ₹739.
Currently positioned near the upper end of the resistance zone, the stock is attempting another breakout. A decisive break above ₹760 with strong volume confirmation would signal the next major rally phase.
Entry Strategy: Wait for confirmed breakout above ₹760 with volume before initiating fresh positions.
Targets:
Target 1: ₹780
Target 2: ₹800
Target 3: ₹820
Risk Assessment:
No significant bullish expectations below the ₹720-₹760 resistance zone.
💰 Q2 FY26 Financial Highlights (vs Q1 FY26 & Q2 FY25)
Total Income: ₹3,482 Cr (↑ +7% QoQ from ₹3,259 Cr; ↑ +31% YoY from ₹2,664 Cr)
Total Expenses: ₹2,922 Cr (↑ +12% QoQ from ₹2,604 Cr; ↑ +36% YoY from ₹2,142 Cr)
Operating Profit: ₹560 Cr (↓ -15% QoQ from ₹655 Cr; ↑ +7% YoY from ₹522 Cr)
Profit Before Tax: ₹550 Cr (↓ -16% QoQ from ₹656 Cr; ↓ -0.4% YoY from ₹552 Cr)
Profit After Tax: ₹432 Cr (↓ -16% QoQ from ₹513 Cr; ↓ -0.2% YoY from ₹433 Cr)
Diluted EPS: ₹3.24 (↓ -17% QoQ from ₹3.89; ↓ -0.9% YoY from ₹3.27)
🧠 Fundamental Highlights
Marico delivered stellar Q2 FY26 performance with consolidated revenue soaring 31% YoY to ₹3,482 crore - the highest growth in 17 quarters. The company achieved underlying volume growth of 7% in India business and robust 20% constant currency growth in international markets, despite margin pressures from input cost inflation.
India business revenue jumped 35% YoY to ₹2,667 crore, aided by strategic price hikes in core portfolios. Digital-first premium personal care portfolio (Beardo, Just Herbs, Plix) crossed ₹1,000 crore annualized run rate, while foods portfolio grew 12% crossing ₹1,100 crore ARR with Saffola Oats retaining number one position.
Despite input cost pressures causing 810 bps gross margin contraction, the company increased brand investments with A&P spend rising 19% to ₹345 crore. EBITDA grew 7% to ₹560 crore with margins at 16.1%. Over 95% of portfolio gained or sustained market share while 75% strengthened penetration.
International business recorded 20% CCG with Bangladesh up 22%, MENA 27%, and newer countries/exports surging 53%. Rural demand outpaced urban 2x, with CEO Saugata Gupta confirming company is "on track for full-year aspirations" targeting revenue growth in thirties and 18%+ EBITDA margins in H2.
Avendus retained Buy rating with ₹832 target (raised from ₹810), while Motilal Oswal maintained Buy at ₹825 target. The stock gained 15% YTD outperforming Nifty FMCG's 10%. GST rate rationalization expected to benefit nearly 30% of portfolio, with strategic focus on digital acceleration (20% sales target by FY27) and sustainability initiatives.
✅ Conclusion
Marico's impressive 20-year journey from sub-₹12 to ₹720, backed by stellar Q2 FY26 showing highest revenue growth in 17 quarters at 31%, validates the FMCG leadership thesis despite flat PAT. Post-results 2% rally to ₹739 tests critical ₹720-₹760 resistance zone. Digital-first portfolio crossing ₹1,000 crore ARR, foods at ₹1,100 crore ARR, and 20% international CCG demonstrate diversified growth engines. Rural outpacing urban 2x and 95% portfolio gaining market share provide strong momentum. Breakout above ₹760 could trigger rally toward ₹820 levels with analyst targets at ₹825-₹832 supporting upside potential.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before making investment decisions. Stock markets are subject to risks.
Long
