Financial Ratio Analysis and Comparative Study: Marico Limited vs. Bikaji Foods International (FY 2024-25 to FY 2025-26)

Company Overview:
- Stock Ticker (NSE): MARICO
- Sector: Consumer Goods / FMCG (Beauty, Health, Food)
- Main Brands: Parachute, Saffola, Hair & Care, Set Wet, Livon, Beardo
- Financial Statements Evaluated: Consolidated Social Statements (États financiers sociaux consolidés)
Liquidity Ratios Performance:
- Current Ratio: Decreased from $3.11:1$ in FY 2024-25 to $2.61:1$ in FY 2025-26 ( $\downarrow$ Baisse).
- Quick Ratio: Decreased from $2.41:1$ in FY 2024-25 to $2.00:1$ in FY 2025-26 ( $\downarrow$ Baisse).
- Analysis: Liquidity ratios remain robust despite a slight downward trajectory. Marico holds $\text{₹}2.61$ in current assets for every rupee of short-term liabilities in FY 2025-26.

Profitability Ratios Performance:
- Net Profit Ratio: Increased from $19.78\%$ in FY 2024-25 to $20.64\%$ in FY 2025-26, representing an improvement of $\uparrow +0.86\%$
- Return on Assets (ROA): Increased from $27.61\%$ in FY 2024-25 to $28.55\%$ in FY 2025-26, representing an improvement of $\uparrow +0.94\%$
- Revenue Expansion (Chiffre d'affaires): Grew from $7,680\,\text{Cr}$ to $9,402\,\text{Cr}$
- Profit After Tax (PAT) Growth: Expanded from $1,519\,\text{Cr}$ to $1,941\,\text{Cr}$

Solvency Ratios Performance:
- Debt-to-Equity (D/E) Ratio: Shifted from $0.03:1$ in FY 2024-25 to $0.01:1$ in FY 2025-26, indicating a very low level of debt (Très faible endettement).
- Interest Coverage Ratio: Strengthened from $78.71\times$ in FY 2024-25 to $84.67\times$ in FY 2025-26, demonstrating excellent coverage capacity (Capacité excellente).
- Financial Position Assessment: Marico reduced total debt obligations from $\text{₹}139\,\text{Cr}$ to $\text{₹}36\,\text{Cr}$ while simultaneously building shareholder equity. The company possesses an outstanding capacity to service interest expenses and enjoys frictionless access to financial markets.

Company Overview:
- Stock Ticker (NSE / BSE): BIKAJI / 543653
- Sector: Food FMCG - Ethnic Snacks
- Corporate Base: Bikaner, Rajasthan (3rd largest snack player in India)
- Listing Date: November 16, 2022
- Structural Context: Approved retroactive merger of VSPL by the National Company Law Tribunal (NCLT), resulting in restated historical financial data.
Key Growth Metrics:
- Net Sales (Ventes Nettes): Expanded from $\text{₹}2,54,072.92\,\text{Lakh}$ in FY 2024-25 to $\text{₹}2,81,717.61\,\text{Lakh}$ in FY 2025-26, yielding a growth rate of $+10.9\%$
- Net Profit (Bénéfice Net): Rose from $\text{₹}20,967.05\,\text{Lakh}$ in FY 2024-25 to $\text{₹}26,907.07\,\text{Lakh}$ in FY 2025-26, yielding a growth rate of $+28.3\%$
- Earnings Per Share (EPS / BPA): Increased from $\text{₹}8.37$ in FY 2024-25 to $\text{₹}10.74$ in FY 2025-26, yielding a growth rate of $+28.3\%$
- Growth Pattern Analysis: Vigorous bottom-line growth where net profits increased substantially faster than sales ( $+28.3\%$ vs. $+10.9\%$ ), pointing to significant enhancements in operational efficiency.

Liquidity Ratios Performance:
- Current Ratio: Adjusted from $2.63:1$ in FY 2024-25 to $2.51:1$ in FY 2025-26 (Very healthy status / Très sain).
- Quick Ratio: Adjusted from $2.27:1$ in FY 2024-25 to $2.20:1$ in FY 2025-26 (Very healthy status / Très sain).
- Cash Ratio (adjusted): Improved from $0.79:1$ in FY 2024-25 to $0.87:1$ in FY 2025-26 ( $\uparrow$ Amélioré).
- Corporate Context: The Current Ratio of $2.51:1$ reflects rapid corporate expansion driven by strategic acquisitions, including Ariba Foods, Petunt Food, and Bikaji Bakes. Overall liquidity remains reassuring, backed by positive growth in net working capital (BFR net).

Activity Ratios Performance:
- Inventory Turnover: Accelerated from $4.93\times$ in FY 2024-25 to $6.46\times$ in FY 2025-26, signaling improved inventory management ( $\uparrow$ Meilleure gestion).
- Debtor Turnover: Increased from $8.51\times$ in FY 2024-25 to $10.90\times$ in FY 2025-26, indicating a faster collection cycle ( $\uparrow$ Collecte plus rapide).
- Collection Period: Shortened from $42.89\,\text{days}$ in FY 2024-25 to $33.48\,\text{days}$ in FY 2025-26, reflecting accelerated cash recovery ( $\downarrow$ Accélération).
- Working Capital Efficiency Summary: Working capital operational efficiency is showing marked improvement, characterized by faster inventory turnover and receivables collections occurring approximately $9\,\text{days}$ quicker.

Direct Metric Comparison:
- Liquidity Profile: Marico registers at $2.61:1$ (declining trend) compared to Bikaji Foods at $2.51:1$ (stable and healthy status).
- Solvency Profile: Marico maintains a Debt-to-Equity ratio of $0.01:1$ (very low debt) compared to Bikaji Foods at $\sim 0.15:1$ (low debt).
- Net Profitability: Marico delivers a Net Profit Ratio of $20.64\%$ compared to Bikaji Foods which exhibits variable margins between $18\%$ and $20\%$
- Return on Equity (ROE): Marico achieves an ROE of $37.02\%$ compared to Bikaji Foods at $\sim 16\%$ (on an upward growth trend).
- Operational Efficiency: Marico shows a stable to slightly declining efficiency pattern, whereas Bikaji Foods exhibits continuous operational improvement.
Core Profile Summary:
- Marico: Represents a mature, highly stable, and exceptionally profitable industry leader.
- Bikaji Foods: Characterized by aggressive market expansion and rapid improvements in operational efficiency.

Strategic Positions:
- Marico Position: Exceptionally stable and highly profitable; primary point of monitoring is the declining trend in liquidity ratios.
- Bikaji Foods Position: Highly dynamic growth profile; primary strength lies in operational efficiency gains, while monitoring is required for rising short-term debt.
Investor Guidance:
- Allocation for Marico: Suited for conservative investors seeking reliable, safe dividend returns.
- Allocation for Bikaji Foods: Suited for growth-oriented investors looking for capital expansion potential.
Management Recommendations:
- Marico Executive Leadership: Active focus required on managing short-term liquidity reserves.
- Bikaji Foods Executive Leadership: Strict financial oversight needed to control leverage and debt levels.