Marico Ltd. will aim to sustain a 7% volume growth in the current financial year, building on strong momentum from its core portfolio and expanding food and digital businesses, according to Chief Executive Officer Saugata Gupta.
"Last year, we saw consistent sequential improvement in volume growth, supported by a resilient core portfolio and continued diversification into foods and digital brands," Gupta told NDTV Profit in a conversation on Monday. "Despite being hit with the highest input cost inflation in the sector, Marico maintained profit growth through institutionalised cost management and continued investment in advertising and promotions."
The parachute oil manufacturer's net profit rose 8% to Rs 343 crore in the quarter ended March, in line with analysts’ estimates.
Food, Digital Businesses To Drive Growth
Gupta highlighted strong momentum in newer segments. The food business grew five times since financial year 2020 and is expected to scale further by fiscal 2027. The digital portfolio is also on track to achieve 10% contribution by fiscal 2027, driven by stronger brand performance and scale efficiencies.
"Our Saffola Foods brand has shown how to expand a master brand into adjacent categories. In the digital space, Plix and Beardo is nearing double-digit profitability and will see accelerated growth. We are also targeting break even for Just Herbs and True Elements within 18–24 months," Gupta said.
Saugata Gupta, Managing Director & CEO, Marico (Image source: LinkdIn)
Saugata Gupta, Managing Director & CEO, Marico (Image source: LinkdIn)
Parachute, Hair Oils Outlook
On the core portfolio, Gupta said volume growth is expected to pick up in parachute oils from the second quarter, as the operating environment shifts from hyperinflation to more normalised inflation. "There is already pressure on smaller players due to elevated input costs and working capital issues."
Value-added hair oils are also expected to deliver steady improvement, aided by a strategy tweak and investment in premium and pre-oiled segments, which enjoy better margins.
FY26 Outlook
The company expects revenue growth in the first half of fiscal 2026 to be led by pricing, with volume stabilisation continuing. "Assuming we maintain current volume growth, we expect comfortable double-digit revenue growth in the first half," he said.
The margin is expected to improve more in the second half, supported by softening input costs, improved mix from digital and food businesses, and scale efficiencies.
"We are extremely confident of delivering double-digit revenue growth in FY26, including double-digit constant currency growth in international markets, barring any major external shocks," Gupta said. "We will also strive to deliver double-digit operating profit growth."
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