Marico

Marico's India business delivered a 7% volume growth in Q2 FY26, despite a 2% volume impact in September due to GST rate rationalization. The company noted steady demand in July and August before the disruption. Revenue growth in India reached multi-quarter highs, with over 95% of the business gaining or sustaining market share and over 75% gaining or sustaining penetration. Management expressed optimism for consumption boost from easing inflation, supportive policies, and favorable monsoons.

Parachute volumes were muted due to unprecedented^🌐 hyperinflation in Copra prices, which saw a 60% pricing growth year-on-year. Copra prices have since declined 15% from July 2025 highs and are expected to settle and decline further by March 2026. Saffola oils also experienced flattish volume growth amidst elevated pricing, but growth is anticipated to pick up as pricing volatility subsides. The company passed on GST benefits through price cuts or grammage increases in relevant categories.

Value-added hair oils (VAHO) accelerated its growth trajectory, gaining 150 bps in value market share on a MAT basis, with mid and premium segments showing double-digit volume growth. Project SETU has been instrumental in this growth, enabling range selling and contributing to the high-margin segment of VAHO. Future phases of SETU aim to reduce direct/indirect coverage gaps, diversify business in the South, bridge rural/urban market share gaps for Parachute, and expand presence in urban channels like food, chemist, and cosmetic outlets.

The Food portfolio crossed ₹1,100 crore ARR and grew 12% this quarter, driven by Saffola Oats, Honey, Soya Chunks, True Elements, and Plix Nutraceuticals. However, growth was temporarily impacted by the last year of True Elements' earn-out, Flipkart accounting adjustments for Plix, and a strategic focus on Plix profitability. The digital-first portfolio, including Beardo and Plix, exited the quarter with an ARR of over ₹1,000 crores, targeting 2.5x of FY24 ARR by FY27 and double-digit EBITDA margins by FY27. Plix is specifically targeting mid to high single-digit EBITDA margins in the next two quarters.

The international business maintained robust performance, with Bangladesh exceeding expectations and Vietnam showing signs of recovery. MENA continued its accelerated growth path. While South Africa experienced a sluggish H1, management expects a visible recovery in the second half. The company aims to maintain robust double-digit constant currency momentum in its overseas business in H2 FY26.

Marico expects gross margins to improve from their bottomed-out levels. The company anticipates an operating margin improvement of at least 200 basis points next year and aims for double-digit EBITDA growth in H2 FY26. A&P spending will continue to grow in double digits. The long-term ambition is to reach ₹20,000 crores in revenue by 2030, driven by strategic priorities including improving India volume growth, maintaining international business momentum, and focusing on profitable growth in new portfolios.