New Delhi, April 7 -- The humble coconut has emerged as an unlikely buffer for Marico Ltd, even as war-led disruption and cost pressures are set to lash its fast-moving consumer goods (FMCG) peers. The Nifty FMCG index is down 16% so far this year, while Marico's stock has been largely flat. The key driver: copra prices. The commodity, a core input for the maker of Parachute hair oil, has fallen about 35% from its peak and is expected to remain range-bound in the months ahead, Marico has said.

That decline offers Marico a cushion against broader input inflation triggered by the ongoing West Asia conflict, giving it relatively stronger earnings visibility than peers. Copra accounts for roughly half of Marico's raw material basket, accordi...