FMCG major Marico has set its sights on a revenue target of Rs 200 billion by FY30, almost double its current topline of around Rs 108 billion in FY25. In a recent interaction with Nuvama, Saugata Gupta, Managing Director & CEO, Marico, showed confidence in the company growth trajectory on the back of expectations of favourable demand conditions in FY26. This, he added, will be supported by easing copra inflation pressures and category-level recovery.
Food inflation is a major factor that impacts the FMCG sector. In May, the year-on-year inflation rate for food, based on the Consumer Food Price Index (CFPI), stood at 0.99 per cent, according to the NSO data. May witnessed a sharp decline of 79 basis points in food inflation in comparison to April 2025. This moderation in food prices could offer a much-needed boost to the FMCG sector, which has been grappling with subdued consumer spending and cost pressures. The easing of inflation may improve rural demand and help restore volume growth across key product categories.
Strategic roadmap and growth drivers
Marico’s multi-pronged growth strategy hinges on key focus areas including…
VAHO (Value-Added Hair Oils): Marico’s VAHO segment is expected to return to mid-to-high single-digit growth in FY26. “Project SETU—aimed at reviving and improving the quality of GT distribution—shall enable better range-selling and support diversification strategies. Marico will leverage its extensive distribution (southern India, Maharashtra) network,” Saugata Gupta said.
Parachute: While the popular coconut oil brand saw a muted demand over the past few quarters due to inflation and grammage cut, Marico was able to absorb around 30 per cent price hike without any reduction in volumes. The segment is expected to recover in H2FY26.
Foods and premium personal care: Marico is targeting a revenue CAGR of over 25 per cent in its foods portfolio, translating to 8x its FY20 size by FY27. This, the company added, will be driven by oats, honey, soya, millets, and muesli. Together with premium personal care, these are expected to comprise 25 per cent of India business by FY27 as against 22 per cent in FY25.
Digital-first brands: In this segment, Marico is aiming for 2.5x FY24 ARR (up from 2x) along with double-digit EBITDA margins by FY27. Saugata Gupta said that Beardo and Plix are EBITDA-positive, and the target ARR for FY26 is Rs 10 billion. Just Herbs and True Elements, meanwhile, are being targeted for 20-25 per cent annual growth and breakeven in 18–24 months.
Distribution expansion: Marico is increasing its GT footprint, particularly in underpenetrated categories like honey and muesli. Its direct retail reach now stands at 1 million outlets.
Cost tailwinds and margin outlook
Based on the interaction with Saugata Gupta, Nuvama noted that copra prices, a key input in its hair oil business, are expected to ease by Q2FY26, potentially boosting margins in H2FY26 onwards. Advertising and promotional spends rose 18 per cent in FY25 to 10.4 per cent of revenue, underlining the company’s focus on brand building, especially in digital-first and food segments.
Leadership continuity driving value creation
Saugata Gupta has been at Marico for the past 21 years, which provided ample time and continuity for strategic implementation. Under his leadership since 2014, the company has delivered 10 per cent EBITDA CAGR and a market cap CAGR of 18.1 per cent through FY25.
To conclude…
With an optimistic view on the demand environment in FY26, driven by recovering rural sentiment, stable input costs, and new growth engines, Nuvama maintained a ‘BUY’ rating on Marico, with an unchanged target price of Rs 815.