Marico

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 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.

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.

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.

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.

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.

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.