Marico targets double-digit EBITDA growth with strategic shifts

Marico Limited reported 7% volume growth in India for Q2 FY26, despite transitionary disruptions from revised GST rates in September that impacted sales by approximately 2%. The company aims for double-digit EBITDA growth in the second half of the year, supported by easing input costs and strategic initiatives. Marico expects revenue growth of around 25% for the current year, with operating margins projected to improve by at least 200 basis points next year.

The Foods portfolio crossed an annual recurring revenue (ARR) of INR 1,100 crore, with Saffola Oats gaining market share and the Muesli range showing "green shoots." Digital-first brands, including Plix and Beardo, exited the quarter with an ARR of over INR 1,000 crores, targeting 2.5x of FY '24 ARR by FY '27 and double-digit EBITDA margins in this portfolio by FY '27. The company's international business, particularly Bangladesh, Vietnam, and MENA, also demonstrated robust performance.

Marico is focused on improving profitability within its Foods and digital businesses. Initiatives like Project SETU are strengthening distribution and driving premiumization in value-added hair oils, which recorded double-digit volume growth in the mid and premium segments. The company expects Copra prices to decline starting March next year, further contributing to margin improvement.