Marico’s digital-first brands have reached a significant milestone, exceeding ₹1,000 crore in annual recurring revenue (ARR). This achievement underscores the company’s move from a traditional leader in its category to a digitally driven consumer brand portfolio focused on long-term profits.
According to MD & CEO Saugata Gupta, Marico is entering a phase where its digital-first and premium personal care brands will reshape its domestic offerings. The company aims to increase its FY24 ARR by 2.5x and achieve a 10% EBITDA by FY27, using a disciplined approach centered on profitable expansion across its D2C business.
Marico’s digital portfolio includes fast-growing D2C brands like Beardo, True Elements, Just Herbs, and Plix, which are expanding through a strategic presence across multiple channels and consumer-focused brand strategies. Beardo is nearly profitable with double-digit EBITDA, and Plix, a D2C wellness brand, has reached break-even, showing that VC-backed D2C brands can achieve profitable business models. True Elements and Just Herbs, in the D2C food and beverage and Ayurveda categories, respectively, are expected to break even in the next 18 months, per Gupta.
Alongside its digital-first efforts, Marico’s Foods division, featuring Saffola and Coco Soul, has also surpassed ₹1,000 crore ARR, driven by strong demand for oats, snacks, and health product innovations. With margin improvements of nearly 1,000 basis points in just two years, Marico anticipates the foods business will return to 20%+ growth by Q4, carrying momentum into the next fiscal year.
Gupta noted that Marico’s digital-first strategy prioritizes fewer, bigger, better, and relevant strategic initiatives, emphasizing scale, innovation, and profitability over growth achieved by heavy spending. The company believes digital brands should drive both revenue and strong EBITDA to maintain investor trust.
Supported by factors like urban consumption recovery, lower inflation, stable rural demand, and expected GST streamlining, Marico expects its core portfolio to strengthen in the coming quarters. The company reported ₹3,482 crore in revenue for the September quarter, a 30.7% increase year-over-year, with 7% volume growth in India and 20% constant-currency growth internationally.
After surpassing ₹10,000 crore in revenue in FY25, Marico aims to become a ₹20,000 crore business by 2030, doubling its size through digital-first expansion, strategic category diversification, and a comprehensive D2C strategy.
This milestone indicates key trends in India’s D2C market: profitability, premiumization, and omnichannel strategies are shaping the next phase of D2C and large-scale FMCG changes. Marico’s experience shows how established brands can innovate and compete with D2C startups while maintaining financial prudence.
