Marico Q1 Margins Hold Steady; SEBI RA Rajneesh Sharma Flags Price Exhaustion Near ₹741 Resistance

A strategic restructuring of its D2C unit and cautious technical signals have kept investor sentiment mixed.

Marico shares fell 1% on Tuesday after the company reported flat revenue and profit for the first quarter (Q1), maintaining steady margins. 

SEBI-registered analyst Rajneesh Sharma highlighted signs of price exhaustion near ₹741, warning of potential pullback unless volumes confirm a breakout.

Earnings Review

Revenue for Q1came in at ₹2,481 crore, nearly flat from ₹2,477 crore a year ago. Net profit was steady at ₹389 crore, while EBITDA stood at ₹534 crore. 

The company maintained its EBITDA margin at 21.5%, reflecting disciplined cost control despite subdued topline growth.

Marico also initiated an internal restructuring under “Project Velar,” absorbing its direct-to-consumer subsidiary Apcos Naturals, which owns the Just Herbs brand, through a voluntary liquidation. 

While Apcos contributes less than 1% to consolidated turnover, the move aims to consolidate digital-first efforts into the parent entity. 

The restructuring process is already underway and is expected to conclude after statutory clearances.

Technical Breakdown

SEBI-registered analyst Rajneesh Sharma said Marico’s price action is showing signs of fatigue, despite the business fundamentals holding steady. 

He noted that the stock is trading within a rising wedge, which is typically a topping pattern, with bearish divergence on the Relative Strength Index (RSI), indicating weakening momentum. 

Volume has been low on recent upswings, and the stock has struggled to break above the ₹741–₹745 resistance zone.

According to Sharma, the bias turns “cautiously bearish” unless Marico convincingly clears ₹742 with strong volume. Key downside support levels lie at ₹700–₹710 on the lower wedge, ₹690 horizontal support, and ₹633 as the major base.

On Stocktwits, retail sentiment for Marico was ‘neutral’ amid ‘high’ message volume.

Marico’s stock has risen 11.1% so far in 2025.

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