Marico Limited — Q4 FY26 earnings call

Call held 5 May 2026

Management summary

Marico concluded FY26 with strong performance, achieving multi-year highs in revenue and volume growth across India and International businesses. The company successfully navigated a volatile input cost environment, delivering double-digit profit growth. Strategic focus on premiumization, digital transformation, and distribution expansion (Project SETU) continues to drive growth, with positive outlook for FY27 and FY30 targets despite some geopolitical and inflationary headwinds.

Highlights

  • Consolidated revenue reached multi-year highs in FY26, driven by strong execution.

  • India business showed improving volume growth trajectory, with over 95% of the portfolio gaining or sustaining market share.

  • Value Added Hair Oils (VAHO) delivered robust growth, with volume growth in the low 20s in Q4 FY26 and portfolio growth of 20% for FY26.

  • Foods portfolio exited FY26 with over INR1,000 crores in revenue, demonstrating mid-teen growth in Q4, with core Saffola Foods growing in double digits.

  • Digital-first portfolio of Premium Personal Care exited FY26 at INR1,100+ crores ARR, with Plix and Beardo on an accelerated growth trajectory and improving profitability.

Concerns

  • MENA performance in the Gulf region was impacted by near-term supply side constraints in March.

  • Vegetable oils and other crude-linked inputs continue to exhibit an upward bias due to ongoing geopolitical tensions.

  • Potential impact of El Niño effect on consumption in H2 FY27/Q1 FY28 is a monitorable.

Key financials

  1. Foods Portfolio Revenue ₹1,000 Cr
  2. Premium Personal Care ARR ₹350 Cr
  3. Digital-first PPC ARR ₹1,100 Cr
  4. Combined Foods & PPC Revenue Share 23%

What they filed

Q1 FY27: revenue up 22.9%, net profit up 27.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,664 2,794 2,730 3,221 3,482 +31%3,537 +27%3,301 +21%3,957 +23%
EBITDA522 533 458 655 560 +7%592 +11%521 +14%819 +25%
Net profit433 406 345 513 432 −0%460 +13%408 +18%652 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • M&A Cosmix Acquisition · Integrated

    Part of digital-first portfolio, contributing to profitability.

    Profitable, with high teens EBITDA margins.

    So I think two things. Firstly, just to give a perspective, 2 of the 3 acquisitions, for example, Cosmix and Skinetiq are profitable. As you know, Skinetiq is in the mid-20s, Cosmix is in the high teens.
  • M&A Skinetiq Acquisition · Integrated

    Part of digital-first portfolio, contributing to profitability.

    Profitable, with mid-20s EBITDA margins.

    So I think two things. Firstly, just to give a perspective, 2 of the 3 acquisitions, for example, Cosmix and Skinetiq are profitable. As you know, Skinetiq is in the mid-20s, Cosmix is in the high teens.
  • M&A Plix Acquisition · Integrated

    Part of digital-first portfolio, experiencing upward trajectory in operating margins and pivoting towards Personal Care for higher profitability.

    Currently mid to high single-digit margin, aspiring for double-digits soon.

    And number two, as we talked about in Plix, which is a large part of the digital business, which is also experiencing an upward trajectory in operating margins. ... Plix currently should be hitting around mid to high single-digit margin. We hope very soon, it will get into double digits.

Guidance & targets

Volume

  • India business volume growth Volume · FY27 · High confidence high single-digit
    We expect to sustain high single-digit volume growth in the India business in FY '27.

    — Saugata Gupta

  • International business constant currency growth Volume · FY27 · High confidence mid-teen
    The international business is expected to maintain strong momentum and mid-teen constant currency growth driven by broad-based performance across markets.

    — Saugata Gupta

Revenue

  • Consolidated revenue Revenue · FY27 · High confidence INR15,000 crores
    At a consolidated level, we aim to deliver double-digit revenue growth to cross INR15,000 crores in revenues

    — Saugata Gupta

  • Consolidated revenue Revenue · FY30 · High confidence INR20,000 crores
    At a consolidated level, we will aim to sustain double-digit revenue growth to comfortably cross INR20,000 crores in revenues

    — Saugata Gupta

Profitability

  • Consolidated EBITDA growth Profitability · FY27 · High confidence high-teen
    and high-teen EBITDA growth, subject to stable macros.

    — Saugata Gupta

  • Premium Personal Care (digital-first) EBITDA margins Profitability · FY30 · High confidence teens
    and eventually teens EBITDA margins in FY '30.

    — Saugata Gupta

  • Consolidated EBITDA growth Profitability · FY30 · High confidence mid-teen
    and aspire for mid-teen EBITDA growth by FY '30.

    — Saugata Gupta

Portfolio Mix

  • Combined Foods & PPC revenue share Portfolio Mix · FY27 · High confidence 27%

    Previously 23% → 27%

    We expect the share of these new businesses to expand to about 27%, which was earlier targeted to reach 25% in FY '27

    — Saugata Gupta

  • Combined Foods & PPC revenue share Portfolio Mix · FY30 · High confidence one-third
    and aspire to move about one-third of our business by FY '30.

    — Saugata Gupta

  • Commodity-linked businesses share Portfolio Mix · FY30 · High confidence 50%

    From >70% today

    we expect to have substantially transformed the portfolio, resulting in lowering the share of commodity-linked businesses from more than 70% to 50% over a decade.

    — Saugata Gupta

Foods

  • Foods portfolio growth Foods · FY27 · Medium confidence 20-25%
    I think, let's take it as a 20% as a base case and then we will see.

    — Saugata Gupta

Margin

  • Gross margin improvement Margin · FY27 · High confidence 300-400 bps
    And I believe for full year, about 300 to 400 basis points improvement over the exit of FY '26 is fairly possible.

    — Pawan Agrawal

  • Operating margin expansion Margin · FY27 · High confidence 150 bps
    And balance 150 bps to about 200 bps base case in case of 150 bps is the operating margin expansion that we are looking at.

    — Pawan Agrawal

Ad Spend

  • A&P investment increase Ad Spend · FY27 · High confidence 200-250 bps
    I believe maybe 200, 250 basis points can be increased in the A&P

    — Pawan Agrawal

Tax Rate

  • Consolidated tax rate Tax Rate · FY27 · High confidence 20%
    Yes, you could consider around 20% or so.

    — Pawan Agrawal

Market context

  • Consolidated revenue growth Revenue · FY27 · High confidence double-digit
    At a consolidated level, we aim to deliver double-digit revenue growth to cross INR15,000 crores in revenues

    — Saugata Gupta

  • Premium Personal Care (digital-first) EBITDA margins Profitability · FY27 · High confidence double-digit
    The scale-up of this portfolio is being accompanied by a structural improvement in profitability as we aim to exit FY '27 at a double-digit EBITDA margins

    — Saugata Gupta

What to watch in Q1 FY27

India Business Volume Growth

Q1 FY27
Current improving volume growth trajectory
Target high single-digit volume growth

Why it matters

Key indicator of core business health and demand recovery in the domestic market.

We expect to sustain high single-digit volume growth in the India business in FY '27.

Risks & concerns

  • Geopolitical tensions (Middle East crisis)

    medium

    Impacted MENA Gulf region in March, but overall exposure is low (4% of total turnover) and no immediate major concern.

    Management acknowledged

  • Input cost inflation (vegetable oils, crude-linked inputs)

    medium

    Upward bias due to geopolitical tensions, but company plans to mitigate through calibrated pricing actions and cost management.

    Management acknowledged

  • Inflation impact on FMCG consumption

    medium

    Inflation is a significant enemy for FMCG consumption, especially in rural areas and bottom of the pyramid.

    Management acknowledged

  • El Niño effect

    medium

    Potential impact on consumption towards the back half of FY27, stretching into Q1 FY28.

    Management acknowledged

Q&A highlights

8 direct
Bangladesh & MENA Performance and Outlook Direct
In Bangladesh, we have been extremely steady. Now obviously, there are some pricing which has been taken into account. But I think overall as long as we continue to deliver, Bangladesh has been a critical component and has continued to remain resilient and therefore, with annualized double-digit growth, we are happy. ... Coming to MENA, March, obviously, there were issues on shipment. So there's a difference between impact on offtake and impact on the primary sale... But I think in terms of offtake, we have no reason to have significant concern.

Clarifies the drivers of strong international growth and addresses concerns about geopolitical impact on MENA sales.

Asked by Abneesh Roy

Integration and performance of recent acquisitions (4700BC, Cosmix, Plix) Direct
I think it has been a positive start. One of the things we do is we ensure that we partner with fantastic set of founders. In all the cases, the unique set of brands. And therefore, we have had positive starts, no hiccups. And I think the one big change that has happened now that we have a house of brands, we are seeing the impact of synergy at least in the back end, which benefits long-term profitability, long-term traction or even, for example, if you know that like in a brand like a Popcorn and 4700BC, we see a price point pack can be taken over by GT.

Provides insight into the successful integration strategy and early synergies from recent brand acquisitions.

Asked by Abneesh Roy

Raw material cost trends (copra vs. crude-linked) and potential for cross-subsidization Direct
From a pricing perspective, what we have done is since we have seen that copra prices have come down by approximately 35% from the peak, we have taken price cuts in non-price point and small packs to the extent of about 10% or so. ... I think this is a unique year where we believe that given the supply chain constraints and other challenges the smaller players will face, I think this is advantageous for us. So therefore, instead of cross subsidizing, we have a kind of a competitive advantage this year if this supply situation and all these constraints continue.

Explains pricing strategy in response to copra deflation and highlights competitive advantage due to supply chain resilience amidst broader inflation.

Asked by Abneesh Roy

Rationale for upward revision of FY27 EBITDA guidance to high-teen Direct
So I think two things. Firstly, just to give a perspective, 2 of the 3 acquisitions, for example, Cosmix and Skinetiq are profitable. As you know, Skinetiq is in the mid-20s, Cosmix is in the high teens. And number two, as we talked about in Plix, which is a large part of the digital business, which is also experiencing an upward trajectory in operating margins. Now we have a firmer view of copra, which is now going to be range bound for the rest of the year. And we have a stress test version of what crude could be, of course, it is very difficult to predict.

Details the specific factors (acquisition profitability, improved Plix margins, stable copra outlook) driving increased confidence in future profitability.

Asked by Mihir Shah

Sustainable volume levels and strategy for Saffola Edible Oils in FY27 Direct
As I said, we have made it clear in Saffola, we are okay to have a low to mid-single-digit volume growth subject to a threshold level of margin. So wherever there has been input cost increase, we'll pass it on, and we have done already. Now coming to the other important thing we are doing is we are focusing on Saffola Gold, Total and Cold pressed oils, which is the higher-margin portfolio and higher realization portfolio.

Outlines the company's strategic trade-off between volume growth and margin protection for the Saffola portfolio.

Asked by Mihir Shah

Top worries for FY27 and key monitorables Direct
So I think if you look at it, obviously, the macro geopolitical situation is important... if you see historically, inflation is FMCG consumption is biggest enemy, especially in the bottom of pyramid or in rural. And the last one is another monitorable is if it is a strong El Niño your, in terms of El Nino effect impacting consumption towards the back half of the year, stretching into the quarter 1 of next year.

Provides management's perspective on external risks that could impact business performance in the coming year.

Asked by Vivek Maheshwari

Plix's current EBITDA margin, shift to Personal Care, and future growth scalability Direct
Plix currently should be hitting around mid to high single-digit margin. We hope very soon, it will get into double digits. Yes, we started with ACV. I think what it pivoted towards, and that is a function of Plix stands for plant-based and hair and skin food, and hair and skin food is what we pivoted. If you look at all the Plix play in Personal Care, we believe that the Personal Care had higher profitability. It expanded TAM. The brand could carry itself up.

Details the current financial status and strategic direction of Plix, emphasizing its pivot to higher-margin Personal Care categories and growth potential.

Asked by Nihal Mahesh Jham

Consolidated revenue guidance of INR15,000 crores and whether it is conservative Direct
So I think delivering double-digit revenue growth is not conservative in any category and any sector. I don't know where you are coming from in terms of conservatism in this. See, this year, what happened is a significant inflation that was built in. What we have said consistently that we are confident of delivering high single-digit growth in India, kind of a mid-teen constant currency growth in the international business. And subject to that, that leads to a kind of a growth, which is, again, a double-digit revenue growth overall blended. Obviously, as you know, that we have taken some pricing correction in Parachute in the non price point pack to the extent of 10% that has been incorporated into the revenue expectations.

Management defends its double-digit revenue growth guidance, explaining it's not conservative given the context of FY26 inflation and pricing corrections.

Asked by Aditya Soman

3 min read 7 chapters

Detailed narrative

Operating Environment and Demand Outlook

In Q4 FY26, demand sentiment remained broadly stable, supported by benign inflation, improving rural sentiment, and favorable policy stimulus. The enhanced affordability due to GST rate rationalization further contributed to this stability. Management expressed optimism for a gradual improvement in consumption trends in the quarters ahead. However, the onset and progression of the monsoon, as well as the inflationary impact of the West Asia crisis, remain key monitorables for the company.

FY26 Performance and Strategic Priorities

FY26 was characterized by strong execution, with India business volume growth, International business constant currency growth, and consolidated revenue reaching multi-year highs. The India business demonstrated an improving volume growth trajectory, with over 95% of the portfolio gaining or sustaining market share. Investments under Project SETU yielded visible results in rural reach and execution quality, supporting the revival and sustained growth of general trade. Alternate channels like organized retail, e-commerce, and quick commerce continued to scale strongly, driving differential growth in urban and premium portfolios.

Key Category Performance

Parachute delivered low single-digit volume growth in Q4 FY26, benefiting from a ~35% correction in copra prices, with benefits passed to consumers. Value Added Hair Oils (VAHO) showed robust growth, with volume growth in the low 20s in Q4 and 20% portfolio growth for FY26, driven by mid and premium segments. The Foods portfolio achieved mid-teen growth in Q4, with core Saffola Foods growing double-digits, and exited FY26 with over INR1,000 crores in revenue. Saffola Edible Oils maintained steady performance, focusing on profitability.

New Businesses and Digital Transformation

The Premium Personal Care portfolio, including Serums, Male Grooming, and Skin Care, exited FY26 with an ARR of over INR 350 crores. The digital-first portfolio within Premium Personal Care reached over INR1,100 crores ARR by FY26. Beardo and Plix are on an accelerated growth trajectory with improving profitability, targeting double-digit EBITDA margins by FY27 and teens by FY30. Marico's digital transformation continues, with 55% of core advertising spends now directed towards digital media.

International Business Performance and Diversification

The international business delivered robust growth in FY26, supported by broad-based performance across markets. Bangladesh maintained strong momentum, while Vietnam, South Africa, and the export market continued to scale up. MENA's Gulf region experienced near-term supply side constraints in March, though Egypt showed strong growth. Marico aims to reduce the share of commodity-linked businesses from over 70% to 50% by FY30 through ongoing diversification and premiumization efforts.

FY27 and Medium-Term Financial Guidance

For FY27, Marico expects high single-digit volume growth in India and mid-teen constant currency growth in the international business. Consolidated, the company aims for double-digit revenue growth to cross INR15,000 crores and high-teen EBITDA growth, subject to stable macros. By FY30, Marico aspires to achieve double-digit revenue growth exceeding INR20,000 crores and mid-teen EBITDA growth, with the combined revenue share of Foods and Premium Personal Care expanding to 27% by FY27 and one-third by FY30.

Input Costs and Margin Management

While copra prices corrected by approximately 35% from peak levels, vegetable oils and crude-linked inputs continue to exhibit an upward bias due to geopolitical tensions. Marico has implemented calibrated pricing actions, including a 10% price cut in Parachute non-price point packs, to neutralize the marginal weighted average input cost increase expected next year. The company anticipates a 300-400 bps gross margin improvement and 150 bps operating margin expansion for FY27, supported by a 200-250 bps increase in A&P investment.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Fast Moving Consumer Goods earnings calls