Summary
Marico Limited - Q4 FY26 Earnings Call Summary Friday, February 13, 2026 4:00 PM
Event Participants
Executives 2 Mr. Pawan Agrawal, Mr. Saugata Gupta
Analysts 7 Abneesh Roy, Akshay Krishnan, Anurag Dayal, Harit Kapoor, Latika Chopra, Mihir Shah, Nitin Gupta, Percy Panthaki, Vaishnavi Gurung
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Food Revenue (FY30 Target) | 15x of FY20 levels | Target accelerated by digital acquisitions; expected to reach 9x of FY20 levels by next year. |
| Digital-first PPC ARR (FY30 Target) | 5x of FY24 levels | Driven by scaling existing portfolio (Beardo, Plix, Just Herbs) and new acquisitions. |
| Global Digital Top Line (FY30 Target) | ₹4,000 crores | Cumulative target for all digital brands across India, Vietnam, and Middle East. |
| New Business Revenue Share (FY30) | ~33% of India Revenue | Reflects structural shift from legacy core to digital-first and food portfolios. |
| Digital-first Portfolio Margins (FY30) | Teens % (EBITDA) | Management expects double-digit margins by FY27, scaling to high teens by FY30. |
| 4700BC Annual Run Rate (ARR) | ₹140 crores | Current scale; goal is to scale 3.5x by FY30 via category expansion beyond popcorn. |
| Cosmix Annual Run Rate (ARR) | ₹100 crores | Operates at high-teen EBITDA margins currently; target 3x to 3.5x revenue by FY30. |
| Quick Commerce Salience (Core) | 5% | Contribution to core domestic revenue; significantly higher for digital-first brands. |
Geographic & Segment Commentary
- Vietnam: Management views Vietnam as a stable, high-growth economy with higher e-commerce/social commerce penetration than India. The acquisition of Skinetiq (Candid brand) targets the science-based skin care segment, delivering mid-20s EBITDA margins. Strategic focus is on using Vietnam as a “chassis” for Southeast Asian digital expansion and leveraging local influencer partnerships for organic brand launches like Astroman and Lashe.
- India Digital Chessboard: The portfolio is segmented into Digital Foods (Saffola, True Elements, 4700BC), Functional Nutrition (Cosmix, Plix), and Digital Personal Care (Beardo, Just Herbs, Kaya). Focus is on “cherry-picking” brands at the ₹100–₹150 crore scale to avoid “FOMO-led” valuation premiums. The goal is to reach a ₹4,000 crore digital top line globally by FY30.
Company-Specific & Strategic Commentary
- Digital Metamorphosis: Marico is transitioning from a legacy FMCG incumbent to a digital-first powerhouse, targeting 33% of India revenue from new businesses by FY30 (Saugata Gupta).
- Synergy Acceleration: Management is integrating back-end functions (procurement, media buying via Meta/Google, and supply chain) to improve gross margins, citing Beardo and Plix as evidence where margins improved post-acquisition (Pawan Agrawal).
- Repeatable Playbook: The strategy involves a “do then say” approach, focusing on brands with healthy unit economics and 90-day innovation cycles to test products in quick commerce before full scale-up.
- Category Expansion: 4700BC will move beyond popcorn into the ₹24,000 crore Western snacking market (nachos, pop chips), while Cosmix will expand from protein into gut health, sleep, and stress supplements.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Group Operating Profit | Mid-teens growth | Maintain guidance for next year despite investment phase in new acquisitions. |
| 4700BC Profitability | EBITDA positive in 12-18 months | Focused on profitable scaling rather than aggressive 6x-7x growth. |
| Digital PPC Margins | Double-digit by FY27 | Confidence stems from in-house manufacturing and supply chain efficiencies. |
| Acquisition Velocity | Tapering in near term | Management stated the “food chessboard” is largely complete; future moves will be selective tuck-ins. |
Risks & Constraints
| Risk | Context |
|---|---|
| Execution & Integration | Rapidly acquiring multiple brands in quick succession poses management bandwidth risks; mitigation includes “implanting” Marico leaders 12 months prior to full takeover. |
| Category Concentration | 4700BC (75% popcorn) and Cosmix (95% protein) have high product concentration; growth depends on successful diversification into competitive snacking and supplement sub-sectors. |
| Channel Shift | Higher reliance on Quick Commerce and E-commerce for new brands may lead to “flirtatious” consumer behavior and lower brand loyalty compared to the core GT-led business. |
Q&A Highlights
Portfolio Strategy
- Question: Is the FY30 target of 3x-3.5x growth for new acquisitions conservative? (Abneesh Roy)
- Answer: It is a base case. Historically, Beardo and Plix have exceeded acquisition assumptions significantly. The company prefers a “do then say” approach (Saugata Gupta).
Profitability & Margins
- Question: Will new acquisitions dilute group margins during the investment phase? (Mihir Shah)
- Answer: No. Mid-teens operating profit growth guidance for the group remains unchanged. Synergies in procurement and manufacturing for brands like Beardo have already uplifted gross margins (Pawan Agrawal).
Synergy & Distribution
- Question: How will Marico leverage its General Trade (GT) strength for premium brands like 4700BC? (Mihir Shah)
- Answer: Marico will use GT as an accelerator, specifically for lower price points (₹10, ₹20) in popcorn, leveraging the distribution network used for Masala Oats (Saugata Gupta/Pawan Agrawal).
Brand Positioning
- Question: Why acquire Cosmix if Plix already covers nutraceuticals? (Abneesh Roy)
- Answer: Plix has shifted toward “hair and skin food,” while Cosmix targets the serious, clean-label, vegan, and plant-based protein/wellness segment (Saugata Gupta).
Key Takeaway
Marico Limited delivered a quarter defined by strategic acceleration, completing multiple acquisitions to fill critical white spaces in its “digital chessboard.” The company is successfully diversifying away from its legacy core, targeting a ₹4,000 crore global digital revenue run rate and a 33% revenue share from new businesses by FY30. Key growth engines include the expansion of 4700BC into the ₹24,000 crore snacking market and the scaling of functional nutrition brands like Plix and Cosmix, which are already showing margin expansion through Marico’s procurement and supply chain synergies. While legacy hair oils face maturity, the management remains committed to mid-teens group operating profit growth, supported by a repeatable playbook for scaling digital-first brands. Investors should monitor the successful transition of management from founders to Marico executives and the ability to maintain premium positioning while scaling into General Trade.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: