Marico Q4 results: Profit climbs 8% propelled by foods, digital-first brands despite transient, inflation-induced pressures looming

Marico Limited reported an 8% year-on-year rise in consolidated net profit for the quarter ended March 2025, buoyed by strong momentum in its Foods and Premium Personal Care portfolios, and resilient performance in international markets despite inflationary headwinds. The company’s fourth quarter revenue rose 20% to ₹2,730 crore, while full-year revenues crossed the ₹10,000 crore mark, growing 12% to ₹10,831 crore. The board also declared a final dividend of ₹7 per equity share.

Marico’s digital-first portfolio—including Beardo, Just Herbs, and Plix—exited FY25 with an Annual Revenue Run-rate (ARR) of ₹750 crore, well ahead of internal aspirations. This outperformance contributed meaningfully to the topline, especially within the Premium Personal Care (PPC) category.

Alongside Foods, the digital-first brands helped raise the composite revenue share of Foods and PPC to about 22% of India revenues in FY25, a critical step toward Marico’s target of 25% by FY27. This diversification insulated Marico from overdependence on traditional mass consumption categories like hair oils and edible oils.

India revenue grew 23% in the fourth quarter, its strongest in 14 quarters, underpinned by a 7% volume growth. The company’s core brands such as Saffola and Parachute registered price-led growth, even as inflation in copra and vegetable oils weighed on consumer demand. Marico noted that approximately 95% of its business gained or sustained market share, and 80% saw penetration gains over the fiscal year.

However, gross margins contracted by approximately 300 basis points in fourth quarter, mainly due to a spike in key input costs. Despite a 35% increase in advertising and sales promotion spends, consolidated EBITDA grew 4% in fourth quarter to ₹458 crore, with an EBITDA margin of 16.8%. Net profit rose 8% to ₹343 crore.

The Foods portfolio stood out, recording a robust 44% value growth year-on-year, with revenues crossing ₹900 crore in FY25. Flagship products like Saffola Oats retained category leadership, while new launches like Saffola Cuppa Oats boosted innovation-driven momentum.

Premium Personal Care and Foods jointly contributed about 22% to India revenues in FY25, as Marico deepened its focus on portfolio diversification. The company expects this share to rise to 25% by FY27, with continued investment in innovation, ATL activations, and direct reach expansion through Project SETU.

Internationally, Marico posted 16% constant currency growth in the reporting quarter and 14% for the full year. Bangladesh, MENA, and South Africa led the momentum, while Vietnam remained flat. MENA alone recorded a 47% growth in the fourth quarter, driven by strong performance in the Gulf and Egypt. The company highlighted that premiumisation efforts across international markets—particularly in skincare and hair care—helped lift the contribution of premium categories to 29% of international revenues, up from about 20% in FY21.

Despite transient pressures from elevated commodity prices, Marico remains bullish on the outlook. “As set out at the start of the year, we have met our double-digit revenue growth aspiration, backed by top quartile volume growth in the India business and robust growth in the International business,” said Saugata Gupta, MD and CEO. He added that premium brand momentum will continue to drive both topline and bottom-line in FY26, with sustained investment in brand building and digital-led expansion.