The FMCG major is accelerating profitability across its digital-first portfolio, while strengthening general trade distribution, leveraging AI and improving operational efficiencies.
Marico expects its premium snacking brand 4700BC to break even ahead of schedule, while two other digital-first brands are projected to become profitable over the next year. The company is accelerating its focus on scaling existing businesses and improving profitability across its digital portfolio.
According to Managing Director and CEO Saugata Gupta, the company expects 4700BC to achieve break-even significantly earlier than its previous target. The two other brands are also expected to reach profitability within the next 12 months. Marico aims to first achieve double-digit EBITDA margins across its digital businesses before moving towards mid-teens over the next two to three years.
The company is strengthening distribution for its digital-first and premium brands through general trade, with Plix, True Elements and 4700BC already being tested in the channel. Its Project SETU 2.0 initiative will leverage technology, artificial intelligence and assisted selling to improve distribution, assortment productivity and last-mile execution.
Marico is also leveraging operational synergies across acquired brands in manufacturing, supply chain, product development and media buying to improve unit economics. Its immediate priorities include healthy foods, snacking, breakfast, protein, shampoos, value-added hair oils and serums.
The company’s Foods business recorded 45% growth in Q2 FY27, crossing an annualised revenue run rate of Rs 1,500 crore. Premium Personal Care crossed an annualised revenue run rate of Rs 500 crore. Marico expects its Foods business to sustain 20-25% growth while progressively improving profitability.
In its core portfolio, Parachute is expected to normalise to 4-6% medium-term volume growth following 13% growth in Q2. Internationally, Marico is targeting sustained double-digit growth, with Vietnam, MENA and South Africa among its key markets.
For Q2 FY27, Marico reported consolidated revenue of Rs 3,897 crore, up 13% year-on-year, while EBITDA increased 27% to Rs 709 crore. The company expects teens revenue growth and mid-twenties EBITDA growth in FY27.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.
