Q1 2027 Marico Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, you are connected for the Marico Limited Conference Call. Please stay connected. The conference will begin in another two minutes. Participants, you are connected for the Marico Limited Conference Call.

Operator 2: Ladies and gentlemen, you are connected for the Marico Limited conference call. Please stay connected. The conference will begin in another two minutes. Participants, you are connected for the Marico Limited conference call. Please stay connected. The conference will begin in another two minutes. Thank you. Ladies and gentlemen, good day and welcome to the Marico Limited's Q1 FY27 earnings conference call. We have with us the senior management of Marico, represented by Mr. Saugata Gupta, MD and CEO, and Mr. Pawan Agrawal, Group CFO and CEO, International Business. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone.

Speaker #1: Please stay connected. The conference will begin in another two minutes. Thank you. Ladies and gentlemen, good day and welcome to Marico Limited's Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to the Marico Limited's Q1 FY27 earnings conference call. We have with us the senior management of Marico, represented by Mr. Saugata Gupta, MD and CEO, and Mr. Pawan Agrawal, Group CFO and CEO, International Business. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone.

Speaker #1: We have with us the senior management of Marico, represented by Mr. Saugata Gupta, MD and CEO, and Mr. Pavan Agarwal, Group CFO and CEO, International Business.

Speaker #1: As a reminder, all participant clients will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts.

Operator 2: Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts. Therefore, if there is anybody else who is not an institutional investor or analyst but would like to ask questions, please directly reach out to Marico's investor relations team. I now hand the conference over to Mr. Saugata Gupta. Thank you, and over to you.

Operator: Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts. Therefore, if there is anybody else who is not an institutional investor or analyst but would like to ask questions, please directly reach out to Marico's investor relations team. I now hand the conference over to Mr. Saugata Gupta. Thank you, and over to you.

Speaker #1: Therefore, if there is anybody else who is not an institutional investor or analyst, but would like to ask questions, please directly reach out to Marico's Investor Relations team.

Speaker #1: I now hand the conference over to Mr. Saugata Gupta. Thank you, and over to you.

Speaker #2: Yeah, hi, good evening everyone, and thanks for joining the call. I'll start with a perspective on the operating environment during the quarter gone by.

Saugata Gupta: Yeah. Hi, good evening, everyone, and thanks for joining the call. I'll start with the perspective on the operating environment during the quarter gone by, after which I'll cover our performance, strategic priorities, and our outlook going forward. During the quarter, macro environment globally remained volatile with supply chain disruptions and increasing energy costs impacting economic activity. Despite these global headwinds, India continued to demonstrate resilience backed by strong underlying fundamentals. Domestic demand remained healthy, and economic activity continued to expand. While there was a rise in consumer inflation led by food and a marginal fuel price hike, it remained within RBI threshold. On the other hand, some of the international economies where we are operating have experienced some transient headwinds due to ongoing geopolitical development in the form of inflation and other costs. Moving on to our performance.

Speaker #2: After which, I'll cover our performance, strategic priorities, and our outlook going forward. During the quarter, macro environment globally remained volatile, with supply chain disruptions and increasing energy costs impacting economic activity.

Speaker #2: Despite these global headwinds, India continued to demonstrate resilience backed by strong underlying fundamentals. Domestic demand remained healthy, and economic activity continued to expand. While there was a rise in consumer inflation led by food and a marginal fuel price hike, it remained within RBI’s threshold.

Speaker #2: On the other hand, some of the international economies where we are operating have experienced some transient headwinds due to ongoing geopolitical developments in the form of inflation and other costs.

Speaker #2: Moving on to our performance, we have started the year on a very strong note with a consolidated revenue growth at 23%, an EBITDA and PAC growth of 25%, making our highest profit growth in the last 28 quarters.

Saugata Gupta: Moving on to our performance. We have started the year on a very strong note with a consolidated revenue growth at 23% and EBITDA and PAT growth of 25%, making our highest profit growth in the last 28 quarters. The India business delivered one of the strongest quarters in recent years with 11% volume growth and revenue growth of 21%, led by robust momentum in core business and continued scale-up of new growth engines. Over 96% of the business continued to gain or sustain market share, and over 99% of the business continued to gain or sustain value creation on a MAT basis.

Saugata Gupta: We have started the year on a very strong note with a consolidated revenue growth at 23% and EBITDA and PAT growth of 25%, making our highest profit growth in the last 28 quarters. The India business delivered one of the strongest quarters in recent years with 11% volume growth and revenue growth of 21%, led by robust momentum in core business and continued scale-up of new growth engines. Over 96% of the business continued to gain or sustain market share, and over 99% of the business continued to gain or sustain value creation on a MAT basis. The strong brand performance was well complemented by sharp execution across channels. Both general trade and modern trade recorded double-digit growth. The success of Project Setu continued to strengthen our general trade execution, driving wider reach, superior assortment quality, improved service levels, and therefore improved ROI for our distribution partners.

Speaker #2: The India business delivered one of the strongest quarters in recent years, with 11% volume growth and revenue growth of 21%, led by robust momentum in core business and continued scale-up of new growth engines.

Speaker #2: Over 96% of the business continued to gain or sustain market share. And over 99% of the business continued to gain or sustain registration on a MAD basis.

Speaker #2: The strong brand performance was well complemented by sharp execution across channels, both generated and monitored recorded double-digit growth. The success of project Setu continued to strengthen our generated execution, driving wider reach, superior assortment quality, improved service levels, and therefore improved ROI for our distribution partners.

Saugata Gupta: The strong brand performance was well complemented by sharp execution across channels. Both general trade and modern trade recorded double-digit growth. The success of Project Setu continued to strengthen our general trade execution, driving wider reach, superior assortment quality, improved service levels, and therefore improved ROI for our distribution partners. Quick commerce continued its accelerated scale-up, reporting more than 50% growth for our core business. It now contributes to around 5% of India business revenues, excluding digital brands, and all digital channels put together account to over 20% of India business revenues.

Speaker #2: QuickCommerce continued its accelerated scale-up, reporting more than 50% growth for our core business. It now contributes to around 5% of India business revenues, excluding digital brands, and all digital channels put together account to over 20% of India business revenues.

Saugata Gupta: Quick commerce continued its accelerated scale-up, reporting more than 50% growth for our core business. It now contributes to around 5% of India business revenues, excluding digital brands, and all digital channels put together account to over 20% of India business revenues. International business reported 15% constant currency growth, led by outperformance in Vietnam and MENA. Talking about the bottom line performance, gross margin expanded 30 basis points year-on-year, led by softer copra prices, a favorable channel and portfolio mix coming from our strong growth in premium portfolio, GT growth, and profitable scale-up of our foods and digital first portfolio. Here, advertising and sales promotion expenses grew substantially at 25% as we continued to invest significantly in our brands to strengthen our long-term equity, support innovation, some of the big innovations we have launched this quarter, and drive consumer salience. EBITDA margin improved 40 basis points year-on-year to 20.7.

Saugata Gupta: International business reported 15% constant currency growth, led by outperformance in Vietnam and MENA. Talking about the bottom line performance, gross margin expanded 30 basis points year-on-year, led by softer copra prices, a favorable channel and portfolio mix coming from our strong growth in premium portfolio, GT growth, and profitable scale-up of our foods and digital first portfolio. Here, advertising and sales promotion expenses grew substantially at 25% as we continued to invest significantly in our brands to strengthen our long-term equity, support innovation, some of the big innovations we have launched this quarter, and drive consumer salience. EBITDA margin improved 40 basis points year-on-year to 20.7.

Speaker #2: International business reported 15% constant currency growth led by outperformance in Vietnam and Mina. Talking about a bottom-line performance, gross margin expanded 30 basis points year-on-year led by softer corporate prices, a favorable channel and portfolio mix coming from our strong growth in premium portfolio GT growth and profitable scale-up of our foods and digital first portfolio.

Speaker #2: AN advertising and sales promotion expenses grew substantially at 25% as we continued to invest significantly with our brands to strengthen our long-term equity. Support innovation, some of the big innovations we have launched this quarter and drive consumer salience.

Speaker #2: EBITDA margin improved 40 basis points year-on-year to 20.7. Overall, this was a very strong quarter for us, meant even noteworthy as it builds on a high base from the corresponding period last year.

Saugata Gupta: Overall, this was a very strong quarter for us, made even noteworthy as it builds on a high base from the corresponding period last year. On a two-year basis, volume, revenue, and profit after tax have compounded at 10%, 23%, and 17% respectively, reflecting our strength of our portfolio of brands and execution prowess and our resilience. Let us now touch upon the key trends across our domestic business. Parachute Virgin delivered 10% volume growth, its strongest performance in the last 20 quarters, and gained over 400 basis points in volume share, marking a new high. Revenue grew 23%, reflecting the anniversarization of prior year price increases and pricing actions done during the quarter as we proactively passed on value to the consumers in non-price point large packs amid softening in copra prices.

Speaker #2: On a two-year basis, volume, revenue, and profit after tax have compounded at 10.2% and 17%, respectively, reflecting the strength of our portfolio brands, our execution prowess, and our resilience.

Speaker #2: Let us now touch upon the key trends across our domestic business. Parachute Widgets delivered 10% volume growth, with the strongest performance in the last 20 quarters, and gained over 400 basis points in volume share, marking a new high.

Speaker #2: Revenue grew 23%, reflecting the anniversarization of prior year price increases and pricing actions taken during the quarter, as we proactively passed on value to consumers in non-price point large packs amid softening in corporate prices.

Speaker #2: Beyond the strong quarterly outcome, the performance underscores enduring strength of the franchise and the competitive advantage we have built in supply chain compared to smaller players over decades.

Saugata Gupta: Beyond the strong quarterly outcome, the performance underscores the enduring strength of the franchise and the competitive advantage we have built in supply chain compared to smaller players over decades. Our expertise in managing commodity cycles, combined with a differentiated supply chain and sharp execution, enables us to respond faster to market changes based on a lot of learnings over the past few cycles where we have taken price drops. Value-added hair oils continued strong momentum, delivering 22% value growth led by mid and premium segment. Premium and mid-and-premium hair oil portfolio contributed close to high teens volume growth, which this is the profitable part of the mix. We continue to gain market share handsomely. Further, we are seeing encouraging progress in our almond oil franchise, and our aim is to build it to INR 100 crore plus ARR franchise by FY28.

Speaker #2: Our expertise in managing commodity cycles, combined with a differentiated supply chain and sharp execution, enables us to respond faster to market changes. This is based on a lot of learnings over the past few cycles, where we have taken price drops.

Speaker #2: Value-added hair oils continued with strong momentum, delivering 22% value growth led by the mid and premium segment. The premium and mid and premium hair oils portfolio contributed close to high teens volume growth, which is the profitable part of the mix.

Speaker #2: We continue to gain market share handsomely. Further, we are seeing encouraging progress in our almond oil franchise and our aim is to build it to 100 crore plus ERR franchise by FY28.

Saugata Gupta: We continue to gain market share handsomely. Further, we are seeing encouraging progress in our almond oil franchise, and our aim is to build it to INR 100 crore plus ARR franchise by FY28. Our performance in VAHO reflects the growing strength of our premium portfolio, supported by sustained investments in innovation, premiumization, and distribution expansion. VAHO has benefited immensely by Project Setu. Saffola edible oil delivered 7% revenue growth during the quarter as we implemented calibrated pricing action in response to further increase in input costs.

Speaker #2: Our performance in Wahoo reflects the growing strength of our premium portfolio, supported by sustained inventions and innovation, premiumization, and distribution expansion. Wahoo has benefited immensely from Project Setu.

Saugata Gupta: Our performance in VAHO reflects the growing strength of our premium portfolio, supported by sustained investments in innovation, premiumization, and distribution expansion. VAHO has benefited immensely by Project Setu. Saffola edible oil delivered 7% revenue growth during the quarter as we implemented calibrated pricing action in response to further increase in input costs. The business reported a high single-digit volume decline as we rationalize supply of select variants in certain channels to maintain structural profitability in the trade-off with volume growth. Our diversification agenda continues to gather momentum. The combined foods and premium personal care portfolio, including digital-first brand, has achieved significant scale and is increasingly becoming an important contributor to our growth. More importantly, these businesses are not only growing ahead of the core portfolio, but are also improving quality with stronger profitability, deeper consumer relevance, and expanding addressable market besides our own internal capability.

Speaker #2: Safola edible oil delivered 7% revenue growth during the quarter as we implemented calibrated pricing action in response to further increase in input costs, the business reported a high single-digit volume decline as we rationalized supply of select variants in certain channels to maintain threshold profitability in the trade-off with volume growth.

Saugata Gupta: The business reported a high single-digit volume decline as we rationalize supply of select variants in certain channels to maintain structural profitability in the trade-off with volume growth. Our diversification agenda continues to gather momentum. The combined foods and premium personal care portfolio, including digital-first brand, has achieved significant scale and is increasingly becoming an important contributor to our growth. More importantly, these businesses are not only growing ahead of the core portfolio, but are also improving quality with stronger profitability, deeper consumer relevance, and expanding addressable market besides our own internal capability. Foods continue its strong growth trajectory, reporting a 43% growth and crossing annualized revenue run rate of INR 1,300 crores.

Speaker #2: Our diversification agenda continues to gather momentum. The combined foods and premium personal care portfolio including digital first brand as a significant scale and is increasingly becoming an important contributor to our growth.

Speaker #2: More importantly, this business has not only been growing ahead of the core portfolio, but is also improving quality with stronger, preferred profitability, deeper consumer relevance, and expanding addressable markets, besides our own internal capability.

Speaker #2: Food continued with a strong growth trajectory, reporting a 43% growth and crossing an annualized revenue run rate of ₹1,300 crores. The addition of 4,700 BCN Cosmix expands our addressable market into attractive demand spaces, while the core Saffola Foods franchise continues to deliver strong double-digit growth and strengthen its market position.

Saugata Gupta: Foods continue its strong growth trajectory, reporting a 43% growth and crossing annualized revenue run rate of INR 1,300 crores. The addition of 4700BC and Cosmix expands our addressable market into attractive demand spaces, while the core Saffola foods franchise continues to deliver strong double-digit growth and strengthen its market position. Premium personal care continued to scale well, reaching an annualized revenue run rate of around INR 450 crores. We are witnessing encouraging traction in shampoos category and aspire to achieve about INR 100 crores of revenue this year. The launch of Parachute Advansed Protein Conditioner further expands our addressable market and complements our broader premiumization agenda. Our digital-first portfolio, led by Beardo and Plix, continued to deliver strong growth alongside structural improvement in profitability.

Saugata Gupta: The addition of 4700BC and Cosmix expands our addressable market into attractive demand spaces, while the core Saffola foods franchise continues to deliver strong double-digit growth and strengthen its market position. Premium personal care continued to scale well, reaching an annualized revenue run rate of around INR 450 crores. We are witnessing encouraging traction in shampoos category and aspire to achieve about INR 100 crores of revenue this year. The launch of Parachute Advansed Protein Conditioner further expands our addressable market and complements our broader premiumization agenda. Our digital-first portfolio, led by Beardo and Plix, continued to deliver strong growth alongside structural improvement in profitability. With an ARR of over INR 1,100 crores, the business has scaled up profitably, exemplifying our digital playbook of combining entrepreneurial brand building with disciplined capital allocation and operating leverage.

Speaker #2: Premium personal care continued to scale well, reaching an annualized revenue run rate of around ₹450 crore. We are witnessing encouraging traction in the shampoos category and aspire to achieve nearly ₹100 crore of revenue this year.

Speaker #2: The launch of Parachute Advanced Protein Hair Conditioner further expands our addressable market and complements our broader premiumization agenda. Our digital-first portfolio, led by Beardo and Pix, continued to deliver strong growth alongside structural improvement in profitability. With an ARR of over ₹1,100 crore, the business has scaled up profitably, exemplifying our digital playbook of combining entrepreneurial brand-building with disciplined capital allocation and operating leverage.

Saugata Gupta: With an ARR of over INR 1,100 crores, the business has scaled up profitably, exemplifying our digital playbook of combining entrepreneurial brand building with disciplined capital allocation and operating leverage. Our priority is to drive profitable growth in this portfolio. Taken together, these new-age and premium businesses are steadily strengthening Marico's growth architecture. As we expand into attractive demand spaces and scale new growth engines with discipline, we are not only diversifying the portfolio, but also enhancing the quality and sustainability of future growth. Moving on to international business, we delivered 15% constant currency growth during the quarter. Bangladesh reported a 4% constant currency growth as the business experienced a transient moderation in growth due to pricing anniversarization and demand softness due to persistent high inflation in the economy. This got further accentuated with a sharp rise in fuel and other energy prices.

Speaker #2: Our priority is to drive profitable growth in this portfolio. Taken together, these new age and premium businesses are steadily strengthening Marico's growth architecture. As we expand into attractive demand spaces and scale new growth engines with discipline, we are not only diversifying the portfolio, but also enhancing the quality and sustainability of future growth.

Saugata Gupta: Our priority is to drive profitable growth in this portfolio. Taken together, these new-age and premium businesses are steadily strengthening Marico's growth architecture. As we expand into attractive demand spaces and scale new growth engines with discipline, we are not only diversifying the portfolio, but also enhancing the quality and sustainability of future growth. Moving on to international business, we delivered 15% constant currency growth during the quarter. Bangladesh reported a 4% constant currency growth as the business experienced a transient moderation in growth due to pricing anniversarization and demand softness due to persistent high inflation in the economy. This got further accentuated with a sharp rise in fuel and other energy prices. Through our focused category initiatives, we continue to strengthen our position and sustain market share gains.

Speaker #2: Moving on to international business, we delivered 15% constant currency growth during the quarter, Bangladesh reported a 4% constant currency growth as a business experience of transient moderation in growth due to pricing anniversarization and demand softness due to persistent high inflation in the economy.

Speaker #2: This got further accentuated with a sharp rise in fuel and other energy prices. Through our focused category initiatives, we continue to strengthen our position and sustain market share gains.

Saugata Gupta: Through our focused category initiatives, we continue to strengthen our position and sustain market share gains. Vietnam continued its growth trajectory, delivering 27% constant currency growth during the quarter, driven by strong performance across the male and female personal care categories. We have structurally transformed the business through investments in innovation, distribution, and digital commerce capabilities. Particularly, the progress of our go-to-market transformation on the likes of SETU in India has enhanced execution quality, strengthened market competitiveness, and created a stronger platform for sustainable long-term growth. MENA grew 24% with both Gulf and Egypt performing well. Despite the inflationary pressures and operating challenges in the Gulf region, the business delivered resilient performance driven by strong execution, focused innovation, and continued market share gain in key categories. South Africa posted 8% growth, led by healthcare with our key brands Black Chic, Just For Kids, and Isoplus performing well.

Speaker #2: Vietnam continued its growth trajectory, delivering 27% constant currency growth during the quarter, driven by strong performance across the male and female personal care categories.

Saugata Gupta: Vietnam continued its growth trajectory, delivering 27% constant currency growth during the quarter, driven by strong performance across the male and female personal care categories. We have structurally transformed the business through investments in innovation, distribution, and digital commerce capabilities. Particularly, the progress of our go-to-market transformation on the likes of SETU in India has enhanced execution quality, strengthened market competitiveness, and created a stronger platform for sustainable long-term growth. MENA grew 24% with both Gulf and Egypt performing well. Despite the inflationary pressures and operating challenges in the Gulf region, the business delivered resilient performance driven by strong execution, focused innovation, and continued market share gain in key categories. South Africa posted 8% growth, led by healthcare with our key brands Black Chic, Just For Kids, and Isoplus performing well.

Speaker #2: With structurally transformed the business, the investments in innovation, distribution, and digital commerce capabilities, particularly the progress of our go-to-market transformation on the likes of Setu in India, has enhanced execution quality, strengthened market competitiveness, and created a stronger platform for sustainable long-term growth.

Speaker #2: Mina grew 24% with both Gulf and Egypt performing well, despite the inflationary pressures and operating challenges in the Gulf region, the business delivered resilient performance driven by strong execution, focused innovation, and continued market share gain in key categories.

Speaker #2: South Africa posted 8% growth, led by hair care, with the key brand Black Sheikh, Just 4 K's, and ISO Plus performing well. New country development and export business grew 15%.

Saugata Gupta: New country development and export business grew 15%. Summing up, we have delivered a strong all-around performance this quarter, setting a solid foundation for the year ahead. To draw a cricketing parallel in a match where weather interruptions are a possibility, the best teams aim to get off to a strong start, especially in the power play overs, and stay ahead of the Duckworth-Lewis curve. In much the same, we are looking to build momentum early in the year, positioning ourselves stronger to navigate any volatilities that may rise later and deliver our fuller aspirations with greater confidence. Looking ahead, while global economic challenges persist, we remain optimistic about the consumption trends in India and believe that the strong fundamentals will continue to support economic activity in the country.

Speaker #2: Coming up, we have delivered a strong all-round performance this quarter, setting a solid foundation for the year ahead. To draw a cricketing parallel in a match where weather interruptions are a possibility, the best teams aim to get off to a strong start, especially in the power playovers and stay ahead of the Duckworth-Lewis curve.

Speaker #2: In much the same, we are looking to build momentum early in the year positioning ourselves stronger to navigate any volatility that may rise later and deliver our full-on aspirations with greater confidence.

Speaker #2: Looking ahead, while global economic challenges persist, we remain optimistic about the consumption trends in India and believe that the strong fundamentals will continue to support economic activity in the country.

Speaker #2: We will continue to monitor the evolving inflationary conditions and the progress of the monsoon, but so far the government has done a fantastic job insulating consumers from any significant inflation.

Saugata Gupta: We will continue to monitor the evolving inflationary conditions and progress of the monsoon. So far the government has done a fantastic job insulating consumers from any significant inflation. Some of the international geographies, however, could experience macro headwinds due to the inflationary pressures. We are confident in our ability to navigate well through these short-term phases. Despite the global supply chain disruptions, we have maintained strong supply chain assurance through strategic positioning of raw materials, packaging materials, and finished goods because of our extreme agility. In the near term, we remain focused on driving top quartile outcomes. The strong start to this year has set us well to achieve our full-year aspirations of delivering double-digit revenue growth to cross INR 15,000 crores easily. We are confident of achieving high teens EBITDA growth and aspire to touch 20% EBITDA growth during this year.

Speaker #2: Some of the international geographies, however, could experience macro headwinds. We are confident in our ability to navigate well through these short-term phases. Despite these global supply chain disruptions, we have maintained strong supply chain assurance with strategic positioning of raw materials, packaging materials, and finished goods because of our extreme agility.

Speaker #2: In the near term, we remain focused on driving top quartile outcomes with strong start to this year as set us well to achieve our full-year aspirations of delivering double-digit revenue growth to cross 15,000 crores easily.

Saugata Gupta: The strong start to this year has set us well to achieve our full-year aspirations of delivering double-digit revenue growth to cross INR 15,000 crores easily. We are confident of achieving high teens EBITDA growth and aspire to touch 20% EBITDA growth during this year. We expect India to deliver high single-digit volume growth and international business to deliver mid-teens constant currency growth. We will certainly try and hit another double-digit quarter in India growth sometime in the next two quarters. On the cost front, we are witnessing divergent trends.

Speaker #2: We are confident of achieving high teens EBITDA growth and aspire to touch 20% EBITDA growth during this year. We expect India to deliver high single-digit volume growth, and our international business to deliver mid-teens constant currency growth.

Saugata Gupta: We expect India to deliver high single-digit volume growth and international business to deliver mid-teens constant currency growth. We will certainly try and hit another double-digit quarter in India growth sometime in the next two quarters. On the cost front, we are witnessing divergent trends. Copra prices have corrected meaningfully. While it has seen some upward bias recently, we expect prices to be range bound at around 35% lower than the last year's peak levels. On the other side, crude and vegetable oils continue to exhibit an upward bias, and consequently, we expect input costs to be relatively higher in Q2. As we advance towards our Vision 2030 to achieve INR 20,000 crore in revenues with mid-teens EBITDA CAGR, our focus remains clear. Strengthen our core franchises, expand into adjacent fields where we have a right to win, scale up our digital businesses profitably, and further diversify our international growth engine.

Speaker #2: We will certainly try and hit another double-digit quarter in India growth sometime in the next three quarters. On the cost front, we are witnessing divergent trends. Copra prices have corrected meaningfully, while they have seen some upward bias recently.

Saugata Gupta: Copra prices have corrected meaningfully. While it has seen some upward bias recently, we expect prices to be range bound at around 35% lower than the last year's peak levels. On the other side, crude and vegetable oils continue to exhibit an upward bias, and consequently, we expect input costs to be relatively higher in Q2. As we advance towards our Vision 2030 to achieve INR 20,000 crore in revenues with mid-teens EBITDA CAGR, our focus remains clear. Strengthen our core franchises, expand into adjacent fields where we have a right to win, scale up our digital businesses profitably, and further diversify our international growth engine.

Speaker #2: We expect prices to be range-bound at around 25 to 35% lower—sorry, 35% lower—than last year’s peak levels. On the other side, crude and vegetable oils continue to exhibit an upward bias, and consequently we expect input costs to be relatively higher in Q2.

Speaker #2: As we advance towards our Vision 2030 to achieve ₹20,000 crore in revenues with mid-teens EBITDA CAGR, our focus remains clear: strengthen our core franchises, expand into adjacencies where we have a right to win, scale up our digital businesses profitably, and further diversify our international growth engine.

Speaker #2: To anchor the next phase of our growth, journey, our edge framework, expanding total addressable market and portfolio, enhancing distribution and digitization, growing profitably, and creating an empowered organization while will serve as a backbone for translating our strategic priorities into measurable outcomes.

Saugata Gupta: To anchor the next phase of our growth journey, our EDGE framework, expanding total addressable market and portfolio, enhancing distribution and digitization, growing profitably and creating an empowered organization will serve as a backbone for translating our strategic priorities into measurable outcomes. We are building larger growth engines by strengthening core categories through sustained investments and wider portfolio participation across consumer cohorts, formats, and channels. Simultaneously, we are driving a structural shift in our portfolio towards the premium and more profitable categories by taking bigger, bolder bets. We are already reaping the benefits of GTM transformation led by our Project Setu in India and now Vietnam. The next leg of our journey will focus on sharpening execution through the use of smart analytics, AI, and integrated digital ecosystems. Profitable growth is pivotal to our strategy.

Speaker #2: We are building larger growth engines by strengthening core categories to sustain investments and wider portfolio participation across consumer cohorts, formats, and channels. Simultaneously, we are driving a structural shift in our portfolio towards the premium and more profitable categories by taking bigger, bolder bets.

Speaker #2: We are already reaping the benefits of GTM transformation led by our project Setu in India and now Vietnam. The next leg of our journey will focus on sharpening analytics, AI, and integrated digital ecosystems.

Speaker #2: Profitable growth is pivotal to our strategy. We are reducing the share of commodity-linked businesses and progressively shifting our portfolio towards categories that are more profitable.

Saugata Gupta: We are reducing the share of commodity-linked businesses and progressively shifting our portfolio towards categories that are more profitable. As a result, our portfolio is being designed to compound more profitably with stronger unit economics, lower cyclicity, and better operating leverage over time. Long-term profitable growth of scale is inherently linked to the depth of organization quality and capability. We have always focused on building a strong future-ready backbone anchored in high-quality talent with founder's mentality and owner's mindset, and a value-driven frugal culture. As people and technology are increasingly becoming interdependent, we are leveraging AI analytics and automation to improve visibility, speed, and decision support while empowering teams to drive accountability, collaboration, and execution excellence, and discipline. With this, I close my remarks, and we can take some questions.

Speaker #2: As a result, our portfolio is being designed to compound more profitably with stronger unit economics, lower cyclicity, and better operating leverage over time. Long-term profitable growth of scale is inherently linked to the depth of organization quality and capability.

Speaker #2: We have always focused on building a strong, future-ready backbone anchored in high-quality talent, with a founders' mentality, an owner's mindset, and a value-driven, frugal culture.

Speaker #2: As people and technology are increasingly becoming interdependent, we are leveraging AI, analytics, and automation to improve visibility, speed, and decision support, while empowering teams to drive accountability, collaboration, and execution excellence and discipline.

Speaker #2: With this, I close my remarks, and we can take some questions.

Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchdown phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy with Nomura. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy with Nomura. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Avnish Roy with Noama.

Speaker #1: Please go ahead.

Speaker #3: Yeah, thanks and congrats. My first question is on plant protein, collagen, and ACV. So we have seen a lot of competition coming here as well as Oziva saw a weak quarter in terms of slower growth in Q1 and they called out that this is normal routine business things which keep happening.

Abneesh Roy: Yeah, thanks. Congrats. My first question is on plant protein, collagen, and ACV. We have seen a lot of competition coming here. HUL's OZiva saw a weak quarter in terms of slower growth in Q1, and they called out that this is normal routine business things which keep happening. If I see in your case also, Plix did see a reset in terms of slightly lower growth and more focus on margins from Q3. When we see competition and pricing, there is a lot of overall pricing war currently. Every startup company and a lot of the Tata 1mg kind of players have also entered. I wanted to understand in this kind of a very high growth segment, how is the pricing power and who will essentially gain?

Speaker #3: But if I see in your case also Plix did see a reset in terms of slightly lower growth and more focus on margins from Q3.

Speaker #3: And then when we see competition and pricing, there is a lot of overall pricing war currently. Every startup company and a lot of the Tata 1MG kind of players have also entered.

Speaker #3: So I wanted to understand, in this kind of a very high-growth segment, how is the pricing power and who will essentially win? Because here, brands are new and definitely a lot of the e-commerce companies and a lot of the online medicine companies are also present there through their own private labels.

Abneesh Roy: Because here brands are new and definitely a lot of the e-commerce company and a lot of the medicine online companies are also present there through their own private labels also.

Speaker #2: Yeah, I think let me address this in two ways. I think firstly, I think if you look at our brands, we focus a lot on D2C because D2C ensures that we own the consumer partner him or her in their journey towards wellness.

Saugata Gupta: See, let me address this in two ways. Firstly, I think if you look at our brands, we focus a lot on D2C, because D2C ensures that we own the consumer, partner him or her in their journey towards wellness. We look at LTV by CAC, return, repeat rates, and we believe that they are healthy. Obviously, you can do performance marketing-led spends in a particular channel and grow, but that is not sustainable. In that context, I think both Plix and Cosmix have significantly loyal consumers with good repeat rate, good loyalty, and good equity. We also are using other channels to grow. Yes, there is competition. Sometimes what happens in categories like protein or ACV, it is good to have two, three players who are developing the category. Otherwise, it is important to have category investment to convert a fad into a habit.

Speaker #2: We look at LTV by CAC, return, repeat rates, and we believe that they are healthy. Obviously, you can do performance marketing-led spends in a particular channel and grow, but that is not sustainable.

Speaker #2: In that context, I think both Plix and Cosmix has significantly loyal consumers with good repeat rate, good loyalty, and good equity. We also are using other channels to grow.

Speaker #2: Yes, there is competition sometimes, but what happens in categories like protein or ACV is that it is good to have two or three players who are developing the category. Otherwise, it's important to have category investment to convert a fad into a habit.

Saugata Gupta: Sometimes what happens in categories like protein or ACV, it is good to have two, three players who are developing the category. Otherwise, it is important to have category investment to convert a fad into a habit. We believe in both the categories we participated for habit. Having said that, as you know, Plix has also pivoted successfully towards premium personal care, which is plant-based hair and skin food. There is a journey to be had for Cosmix in the VMS space, therefore we will not restrict ourselves to only plant protein and ACV for both these brands. We are extremely confident of these brands giving sustainably profitable growth. As you know, Cosmix already, when we acquired the brand, had a mid to high teens profitable growth.

Speaker #2: And we believe in both the category participate it's a habit. Having said that, as you know, Plix has also pivoted successfully towards premium personal care which is plant-based hair and skin food.

Saugata Gupta: We believe in both the categories we participated for habit. Having said that, as you know, Plix has also pivoted successfully towards premium personal care, which is plant-based hair and skin food. There is a journey to be had for Cosmix in the VMS space, therefore we will not restrict ourselves to only plant protein and ACV for both these brands. We are extremely confident of these brands giving sustainably profitable growth. As you know, Cosmix already, when we acquired the brand, had a mid to high teens profitable growth.

Speaker #2: There's a journey to be had for Cosmix in the VMS space, and therefore, we will not restrict ourselves to only plant protein and ACV for both these brands.

Speaker #2: And we are extremely confident of these brands giving sustainable, profitable growth. And as you know, Cosmix, already when we acquired the brand, had a mid to high teens profitable growth.

Speaker #1: Sure. My second question

Abneesh Roy: Sure. My second question is on the Almond Hair Oil, INR 100 crore brand by FY28. That is a very aggressive number. In the past, other hair oil companies have also tried this without much success. If you could tell us, apart from, say, aggressive pricing, what else is needed here? The number one player in this segment also seems to be doing quite well. Another follow-up will be essentially on, what is the status on the 4700BC and Cosmix on those new business. Versus initial benchmark, where are we?

Speaker #3: Is ON the Almond Hair Oil a 100 crore brand by FY28? That's a very aggressive number. In the past, other hair oil companies have also tried this without much success.

Speaker #3: So if you could tell us apart from say aggressive pricing what else is needed here because the number one player in this segment also seems to be doing quite well.

Speaker #3: So, another follow-up will be essentially on what is the status on the 4700 and Cosmix on those new businesses versus the initial benchmark—where are we?

Speaker #2: Okay. First, let me finish the 4700K and Cosmix. They are doing well. They are tracking very well in terms of integration I think right now Marico offers two digital unique digital platforms one on foods, one on premium personal care and therefore they are I mean we are in terms of providing synergies expertise and sharing of best practices amongst all the brands.

Saugata Gupta: Okay. First, let me finish the 4700BC and Cosmix. They are doing well. They are tracking very well in terms of integration. Right now, Marico offers two unique digital platforms, one on foods, one on premium personal care, therefore we are, in terms of providing synergies, expertise, and sharing of best practices amongst all the brands. It is tracking very well. Both the brands are very strong equity, and I believe they will end the year ahead of what our initial assumption was. Also the fact that we are also mindful of the profitability. Now, coming to the Almond category. See, in any category when a market leader makes super normal profit without significant innovation, this makes a case for disruption. We have proven that with Amla when we started the journey.

Speaker #2: So it's tracking very well. Both the brands are very strong equity and I believe they will end the year ahead of what our initial assumption is.

Speaker #2: And of course and also the fact that we are also mindful of the profitability. Now coming to the almond category. See, in any category when a market leader makes super normal profit without significant innovation, this makes a case for disruption.

Speaker #2: And we have proven that with Amla when we started the journey. I think once upon a time, we were at 9%, the leader was at 78%, and then we achieved market leadership.

Saugata Gupta: I think once upon a time, we were 9%, the leader was 78%, and then we achieved market leadership. I believe that there is a case for disruption in this category. I think the last one or two years, our resource allocation matrix, where we focus on fewer, bigger, better, bolder in terms of F2, which has given us access to distribution, has given a case for that we can take a critical market share in this category. Our ability to execute has, I think, we reasonably, today it's a machine which is executing this. Therefore, I believe, given that the size of the category, INR 100 crore is a fair ambition.

Speaker #2: I believe that there is a case for disruption in this category. We have our, I think in the last one or two years, our resource allocation matrix, where we focus on fewer, bigger, better, bolder.

Speaker #2: In terms of C2 which has given us access to distribution has given us case for that we can take a critical market share in this category.

Speaker #2: Our ability to execute has, I think, we reasonably—today it's a machine which is executing this, and therefore, I believe, given that the size of the category, 100 crore is a fair ambition.

Speaker #3: Sure. Thanks. That's all from us. Thank you.

Abneesh Roy: Sure. Thanks. That's all from my side. Thank you.

Speaker #1: Thank you. The next question comes from the line of Mahir Shah with Nomura. a. Please go ahead. Mahir Shah from Nomura. Please proceed with your question.

Operator 2: Thank you. The next question comes from the line of Mihir Shah with Nomura. Please go ahead.

Operator: Thank you. The next question comes from the line of Mihir Shah with Nomura. Please go ahead.

Saugata Gupta: Yeah.

Operator 2: Mihir Shah from Nomura. Please proceed with your question.

Operator: Mihir Shah from Nomura. Please proceed with your question.

Speaker #4: Hello. Am I audible?

Mihir Shah: Hello, am I audible now?

Speaker #1: Yes.

Saugata Gupta: Yeah.

Operator 2: Yes, you're audible now, sir.

Operator: Yes, you're audible now, sir.

Speaker #2: Hi.

Saugata Gupta: Hi.

Speaker #4: So sorry for that. Apologies and congrats on a great set of numbers and thank you for taking my question. Firstly on Parachute, COPRA has again started to go up again.

Mihir Shah: Sorry for that. Apologies. Congrats on a great set of numbers, Thank you for taking my question. Firstly, on Parachute, copra has again started to go up again. Do you foresee any intervention required in the near or medium term? Given the large price hike that we had taken in Q2 of last year, can you help us understand what level of price decline can be expected in the near term over the next few quarters on Parachute? That's question number one.

Speaker #4: Do you foresee any intervention required and in the near or medium term? And given the large price hike that we had taken in Tokyo of last year, can you help us understand what level of price decline can be expected in the near term over the next few quarters on Parachute?

Speaker #4: So that's question number one.

Speaker #2: So just when you measure price decline as an MRP price note. So I think one of the things as you two things have happened last year.

Saugata Gupta: Just when you measure price decline as in MRP pricing. Okay. I think two things have happened last year. First, I think, we had 100% increase in input cost prices. We took a 60% hike, Therefore we didn't pass on the entire cost push to the consumer. I think it was unprecedented kind of input cost, but Parachute showed significant resilience. I think it was a very bold move. Nowhere in the world you take a 60% price increase and ensure that you get a slightly positive growth in terms of number of transactions. I think it's unprecedented. I have not seen it happening anywhere. Okay. Coming to this year, we were careful about two things. One I think in the past we hadn't executed some of the price drops well. We waited and watched.

Speaker #2: First, I think we had a 100% increase in input cost prices. We took a 60% hike, so therefore we didn’t pass on the entire cost push to the consumer.

Speaker #2: And I think it was an unprecedented kind of input cost. But Parachute showed significant resilience. I think it was a very bold move. Nowhere in the world do you take a 60% price increase and ensure that you get slightly positive growth in terms of number of transactions.

Speaker #2: I think it's unprecedented. I have not seen it happening anywhere. Okay. Now coming to this year we were careful about two things. One, I think in the past we hadn't executed some of the price drops well.

Speaker #2: So we waited and watched and therefore we have taken only some price drops in the what I call the loyalty packs. As you know, unlike other categories, here the usage of coconut oil in terms of the lower LSM is high and therefore some of the loyalty packs were slightly stressed by the inflation.

Saugata Gupta: Therefore, we have taken only some price drops in the, what I call the loyalty packs. As you know, unlike other categories, here, the usage of coconut oil in terms of the lower LSM is high, and therefore some of the loyalty packs were slightly stressed by the inflation. We have taken the pricing drops on the loyalty packs, and we haven't taken in the small packs and the price point packs. Okay. I think the total hike drop was around 10%.

Speaker #2: So we have taken the pricing drops on the loyalty packs and we hadn't taken in the small and the small packs and the price point packs.

Speaker #2: Okay. And I think the price the total hike drop was around 10%.

Pawan Agrawal: Around 10%.

Speaker #4: On the normal price point.

Speaker #2: Around 10%. Okay. Now, we were clear that we will take only one hike. The other thing which we have done very well, I think, this time is, because of significant investment in AI-led demand sensing and forecasting and the entire supply chain, our overall pipeline is very thin.

Saugata Gupta: Around 10%. Okay. Now, we were clear that we will take only one hike. The other thing which we have done very well I think this time is because of significant investment in AI-led demand sensing and forecasting and the entire supply chain, the overall pipeline is very thin. I believe, Abheek, in the entire FMCG category, our distributor stock is one of the lowest. Therefore in the past, any price drop used to take, what I call 8 weeks or 10 weeks to get effective in the market. This has happened much faster. Secondly, I think what has also changed is that, by taking only one price hike and the fact that the other thing which we did last year is smoothening of all trade spends, no month-end spends. Therefore the pipeline is extremely clear. There are no blockages in the pipeline.

Speaker #2: I believe in the entire FMCG category our distributor stock is really one of the lowest. So therefore in the past any price drop used to take what I call eight weeks or 10 weeks to get affected in the market.

Speaker #2: This has happened much faster. Secondly, I think what has also changed is that, by taking only one price hike, and the fact that the other thing which we did last year is smoothening of all trade spends—no month-end spends.

Speaker #2: So therefore the pipeline is extremely clear. There are no blockages in the prices. So I think that has resulted in significant kind of a impact in terms of growth coming back in the larger packs.

Saugata Gupta: Therefore the pipeline is extremely clear. There are no blockages in the pipeline. I think that has resulted in significant kind of impact in terms of growth coming back in the larger packs. Now coming to the copra thing, we believe that it will stay range down with maybe a slight upward bias at this 30%, 35% kind of a level below the peak. I think we are okay with the kind of pricing interventions we have taken. Obviously, the 10% growth in Parachute was also led also by some supply chain advantages which we had compared to the small players. The other thing which we are witnessing, which is also good for us, is that some of the larger players in this space are exhibiting more rationality in terms of pricing.

Saugata Gupta: I think that has resulted in significant kind of impact in terms of growth coming back in the larger packs. Now coming to the copra thing, we believe that it will stay range down with maybe a slight upward bias at this 30%, 35% kind of a level below the peak. I think we are okay with the kind of pricing interventions we have taken. Obviously, the 10% growth in Parachute was also led also by some supply chain advantages which we had compared to the small players. The other thing which we are witnessing, which is also good for us, is that some of the larger players in this space are exhibiting more rationality in terms of pricing.

Speaker #2: Now, coming to the copra thing, we believe that it will stay range-bound with maybe a slight upward bias at this 30–35% kind of level below the peak.

Speaker #2: And we are I think we are okay with the kind of pricing interventions we have taken. Obviously the 10% growth in Parachute was also led also by some supply chain advantages which we had compared to the small thing small players.

Speaker #2: The other thing which we are witnessing, which is also good for us, is that some of the larger players in this case are exhibiting more rationality in terms of pricing.

Speaker #2: So I think with all this I think you will get a decent and a good volume growth decent volume growth in Parachute even in the next subsequent 200 quarters.

Saugata Gupta: I think with all this, I think you will get a decent and a good volume growth in Parachute even in the next subsequent one or two quarters.

Speaker #3: So just to clarify, Mahir, what Saugata meant was one price drop. We don't want to take multiple price drops. And given the fact that we'll now be moving into the off-season in the next couple of months, we don't see any pricing corrections to happen on the cost side.

Pawan Agrawal: Just to clarify, Abheek, what Saugata meant was one price drop. We don't want to take multiple price drops. Given the fact that we'll now be moving into off-season in the next couple of months, we don't see any pricing corrections to happen on the cost side, therefore we do not expect any further pricing action from our end.

Speaker #3: And therefore we do not expect any further pricing action from our end.

Speaker #4: Understood. I'll take it offline with you later if that is okay.

Mihir Shah: Understood. I'll take it offline with you later, if that is okay.

Pawan Agrawal: Absolutely.

Speaker #3: Absolutely.

Speaker #4: Secondly, I wanted to check on gross margin on a console level. Do you see any headwind in gross margins over the next coming quarters?

Mihir Shah: Secondly, I wanted to check on gross margin on a concern level. Do you see any headwind in gross margins over the next coming quarters? Because I'm unable to triangulate your EBITDA guidance of high teens, given that you still will continue to get benefits on copra. If you hold on to these margins also, there is a material expansion that can happen on the EBITDA growth front, at least. If you can just help me to triangulate your gross margin and EBITDA growth guidance.

Speaker #4: Because I'm unable to triangulate your EBITDA guidance of high teens given that you still will continue to get benefits on COPRA. And if you hold on to these margins also, there is a material expansion that can happen on the EBITDA growth front at least.

Speaker #4: So, if you could just help me to triangulate your gross margin and EBITDA growth guidance.

Speaker #3: If you look at the gross margin in this quarter, we have expanded by approximately 30 basis points. These are the Q1, FY26. Now while there are benefits with respect to consumption on the COPRA side, but at the same time we also have to be mindful that with respect to crude lead derivatives on LP and polymers, there is a significant cost.

Pawan Agrawal: If you look at the gross margin in this quarter, we have expanded by approximately 30 basis points vis-à-vis Q1 FY26. While there are benefits with respect to consumption on the copra side, at the same time, we also have to be mindful that with respect to crude lead derivatives on LDPE and polymers, there is a significant cost. For example, on both these items, the cost increase has been anywhere in the range of 60% to 70%. It will be a mix of both the gains coming in from the consumption of lower copra prices that we witnessed in Q1. At the same time, higher impact on account of LDPE polymers as well as edible oil prices, and we have not really passed on the entire hit to the consumers.

Speaker #3: So for example, on both these items, the cost increase has been anywhere in the range of 60 to 70%. So it'll be a mix of both gains coming in from the consumption of lower COPRA prices that we witnessed in quarter one.

Speaker #3: But at the same time, there is a higher impact on account of LP polymers as well as edible oil prices. And we have not really passed on the entire hit to the consumers.

Speaker #3: So just on the guidance side, very difficult to give on gross margin because we believe it will be a little bit of mix of both.

Pawan Agrawal: Just on the guidance side, very difficult to give on gross margin because we believe it will be a little bit of mix of both. We would try and hold the gross margin percentage as compared to last year. However, on EBITDA margins, again, giving quarter-wide guidance could be difficult. On a full year basis, you heard Saugata mention that high teens is something which is the base case, and we would try for 20% growth for the full year. If you do the reverse maths, if you see that INR 15,000 crores is something that we should definitely deliver, the reverse maths would suggest that EBITDA margin could expand in the range of about 140 to 150 basis points as compared to last year. I hope this answers your question.

Speaker #3: But we would try and hold the gross margin percentage as compared to last year. However, on EBITDA margins, again, giving quarter-wise guidance could be difficult.

Speaker #3: But on a full-year basis, you heard Saugata mention that high teens is something which is the base case and we would try for 20% growth for the full year.

Speaker #3: And if you do the reverse math, and if you see that ₹15,000 crore is something that we should definitely deliver, then the reverse math would suggest that EBITDA margin could expand in the range of about 140 to 150 basis points as compared to last year.

Speaker #3: I hope this answers your question.

Mihir Shah: Understood. Got it. That's what I was highlighting. Even after a strong beat on Q1, you have kept a very conservative guidance on EBITDA growth. I was just thinking along those lines. Anyway, I'll come back in the queue. Thank you for taking my question. Wishing you all the best.

Speaker #4: Understood. Got it. No, that's what I was highlighting. Even after a strong beat on 1Q, you have kept a very conservative guidance on EBITDA growth.

Speaker #4: So I was just thinking on those lines. Anyway, I'll come back in the Q. Thank you for taking my question and wishing you all the best.

Speaker #3: Only thing which I just want to mention is 20% plus growth is definitely not conservative by any standard. But yeah, that's something which we'll definitely aspire to deliver.

Pawan Agrawal: Only thing which I just want to mention is 20% growth is definitely not conservative by any standards. Yeah, that's something which we'll definitely aspire to deliver.

Speaker #4: Absolutely.

Mihir Shah: Absolutely.

Speaker #1: Thank you. The next question comes from Harith Kapoor with Investech. Please go ahead.

Operator 2: Thank you. The next question comes from Harit Kapoor with Investec. Please go ahead.

Operator: Thank you. The next question comes from Harit Kapoor with Investec. Please go ahead.

Speaker #2: Yeah. Hi. Good evening. So, the first question was on Parachute again. You did mention some supply chain benefits. Just, if you could kind of deconstruct this 10% volume growth into how much of it would have been led by maybe a mix of, say, grammage cut, increases also that you might have done.

Harit Kapoor: Yeah. Hi, good evening. The first question was on Parachute again. You did mention some supply chain benefits. If you could kind of deconstruct this 10% volume growth into how much of it would have been led by maybe a mix of, say, grammage increases also that you might have done. How much of it, in your view, is just competitive advantage because of supply chain and because we haven't seen these kind of double-digit volume growth in Parachute for a very long time. Just wanted to get some more color on this 10% number, that would be very helpful. That's my first question.

Speaker #2: How much of it, in your view, is just competitive advantage because of supply chain? And because we haven't seen this kind of double-digit volume growth in Parachute for a very, very long time.

Speaker #2: So, I just wanted to get some more color on this 10% number. That would be very helpful. That's my first question.

Speaker #3: I think it's very difficult to allocate a number to each one of them. But I don't think there has been any grammage changes as such.

Saugata Gupta: I think it's very difficult to allocate a number to each one of them, I don't think there has been any grammage changes As such. I think two things would have happened. One, as I said, that we selectively took deep price cuts or relatively deeper price cuts in the loyalty packs, which are a higher MRP, which resulted in some of the. As you know, whenever there's a significant price increase, there is titration in use or downgradation. That took care of the downgradation. The second thing is, whenever there are supply chain challenges, which is in respect to whatever packaging material, which could respect to fuel or anything, obviously smaller players, they are impacted more compared to us, therefore we ensure there are no supply chain challenges.

Speaker #3: But I think two things would have happened. One, as I said, that we selectively took deep price cuts or relatively deeper price cuts in the loyalty packs which are higher MRP which resulted in some of the as you know, whenever there's a significant price increase, there's titration in use or downgradation.

Speaker #3: That took care of the downgradation. The second thing is whenever there are supply chain challenges, which is respect to whatever packaging material which could respect to fuel or anything, obviously smaller players they are impacted more compared to us and therefore we ensured there are no supply chain challenges.

Speaker #3: And thirdly, I think we have executed the price drop phenomenally well compared to in the past. Whether it's respect to pipeline management, whether it's scheme management, waiting and watching and taking one price drop.

Saugata Gupta: Thirdly, I think we have executed the price drop phenomenally well compared to in the past, whether it's respect to pipeline management, whether it's respect to scheme management, waiting and watching and taking one price drop. Lastly, as I said, the fourth factor could be that maybe compared to the past, some of the organized competition is a little more rational and focused on not selling below at negative gross margin.

Speaker #3: And lastly, as I said, the fourth factor could be that maybe compared to the past, some of the organized competition is a little more rational and focused on not selling below at negative gross margin.

Speaker #2: And just to clarify one thing, Harith, if you're referring to the MLH cuts that we had taken in the price point pack last year, which is 20, now as the copra prices have deflated, I want to clarify that we have not increased the MLHs.

Pawan Agrawal: Just to clarify one thing, Harit, if you're referring about the MLD cuts that we had taken in the price point pack last year.

Saugata Gupta: Yeah

Harit Kapoor: Yeah

Pawan Agrawal: FY26. As the copra prices have deflated, I want to clarify that we have not increased the MLDs. This 10% volume growth is the organic volume growth. Having said that, yes, 10% is elaboration. We don't really expect ourselves to keep delivering high single digit or 10% volume growth for the year. We would want to maintain the guidance of mid-single digit for the Parachute. Just to clarify, yes, we have not upped the MLD in the price point pack that we had cut down last year.

Speaker #2: So this 10% volume growth is the organic volume growth. Having said that, yes, 10% is an aberration. We don't really expect ourselves to keep delivering high single-digit or 10% volume growth for the year.

Speaker #2: We would want to maintain the guidance of mid-single-digit for the Parachute. But just to clarify, yes, we have not upped the grammage in the price point pack that we had cut down last year.

Speaker #1: Got it. Thank you.

Harit Kapoor: Got it. Very clear. The second part was, how do I look at the. Your 11% volume growth for the quarter, is that like a like-to-like number? How do you calculate that number? Because you have had additions in the portfolio over the last three, four months, in terms of new acquisitions. When I look at this 11%.

Speaker #2: The second part was, how do I look at the 11% volume growth for the quarter? Is that like a like-to-like number? How do you calculate that number?

Speaker #2: Because you have had additions in the portfolio over the last three, four months in terms of new acquisitions. So, when I look at the 11%...

Speaker #3: Yeah, so this is the organic volume growth. We haven't included the 4,700 or COSMIC in the volume growth calculation. Until the time it comes into the case, it's not consistent.

Pawan Agrawal: Yeah. This is organic.

Saugata Gupta: Organic number.

Pawan Agrawal: We haven't included 4700BC or Cosmix into the volume growth calculation.

Harit Kapoor: Got it.

Pawan Agrawal: Till the time it comes into the base, it's not.

Harit Kapoor: The third one was on A&P. Last two quarters, the A&P growths have been fairly modest. This quarter also, I think 9% growth at a consolidated level. I was just trying to understand, with these new acquisitions also coming in and assuming more money is going in, how are we able to kind of maintain level of investment as well as growth? Just some color on that would be helpful.

Speaker #2: The third one was on AMC. Last two quarters, the AMC growths have been fairly modest to this quarter also. I think 9% growth out of it solidated level.

Speaker #2: I was just trying to understand with these new acquisitions also coming in, assuming more money is going in, how are we able to kind of maintain level of investment as well as growth?

Speaker #2: Some color on that would be helpful.

Speaker #3: So I mean, said that we have bought our capital outly, of course, that has not impacted our ability to invest behind the AMP line item.

Pawan Agrawal: I mean, said that we have brought our capital outlay, of course, that does not impact our ability to invest behind the A&P line item. As far as if you look at the overall A&P, of course, we have grown by 25% in this quarter, which is a pretty healthy growth because as I said, of course, we had-

Speaker #3: As far as, if you look at the overall AMP, of course we have grown by 25% in this quarter, which is a pretty healthy growth because, as I said, we had significant advantage in terms of our cost line items.

Harit Kapoor: Yeah

Pawan Agrawal: Significant advantage in terms of our cost line items, and we found it appropriate to sort of invest behind both the core and the new products. In India, for example, we launched shampoo. I think, yes, we had resources, and we thought it's the right thing to do to invest behind both, all the business for that matter, whether it is India or international or digital, and that's why you see about 25% growth in the A&P line item.

Speaker #3: And we found it appropriate to sort of invest behind both the core and the new products in India, for example, we launched shampoo. Of course, we invested in the AMP line shampoos.

Speaker #3: So I think, yes, we had resources and we thought it's the right thing to do to invest behind both in all the business for that matter, whether it is India international or digital.

Speaker #3: And that's why you see about 25% growth in the AMP line item.

Harit Kapoor: Got it. Last quick one. With the tax rate a little bit lower this quarter, any change in guidance for the full year at a consolidated level?

Speaker #2: Got it. But last quick one would be tax rate, a little bit lower this quarter. Any change in guidance for the folio at a consolidated level?

Speaker #3: Yeah. So this year tax this quarter, it was about 17.5%. I think from a folio perspective, you can take the guidance about 18% for FY27.

Pawan Agrawal: Yeah. This year tax quarter, it was about 17.5%. I think, from a full year perspective, you can take a guidance of about 18% for FY27 and maybe about 19% and 20% for FY28.

Speaker #3: And maybe about 19 or 20% for FY28.

Speaker #2: Thank you. We're sure of that. Thank you very much.

Harit Kapoor: Thank you. Wish you all the best. Thank you very much.

Speaker #3: Thank you.

Saugata Gupta: Thank you.

Speaker #1: Thank you. Your next question comes from Nihal Mahesh Cham with HSBC. Please go ahead.

Operator 2: Thank you. The next question comes from Nihal Maheshsham with HSBC. Please go ahead.

Operator: Thank you. The next question comes from Nihal Maheshsham with HSBC. Please go ahead.

Speaker #2: Yes. Good evening, team. Am I audible?

Nihal Maheshsham: Yes. Good evening, team. Am I audible?

Nihal Mahesh Jham: Yes. Good evening, team. Am I audible?

Speaker #3: Yeah. Yes, you are.

Pawan Agrawal: Yeah.

Saugata Gupta: Yes, you are.

Speaker #2: Yes, we're audible. Three questions. The first one was on Plex, actually. If we look at the growth specifically for the BPC segment, it has been quite spectacular for FY26.

Nihal Maheshsham: Three questions. The first one was on Plix, actually. If we look at the growth specifically for the BPC segment, it has been quite spectacular for FY26. Just wanted more understanding that what would be the hero SKUs in this segment for Plix, and also how does it comfort on the fact that, Saugata, you've seen a lot of brands maybe leaving apart one to two D2C brands who sort of saturated close to this INR 500 to 700 kind of range. What sort of can give us the confidence to believe that Plix will not see that kind of a limitation? You mentioned that to look at it more as a D2C brand. That was my first question.

Nihal Mahesh Jham: Three questions. The first one was on Plix, actually. If we look at the growth specifically for the BPC segment, it has been quite spectacular for FY26. Just wanted more understanding that what would be the hero SKUs in this segment for Plix, and also how does it comfort on the fact that, Saugata, you've seen a lot of brands maybe leaving apart one to two D2C brands who sort of saturated close to this INR 500 to 700 kind of range. What sort of can give us the confidence to believe that Plix will not see that kind of a limitation? You mentioned that to look at it more as a D2C brand. That was my first question.

Speaker #2: So, just wanted more understanding—that is, what would be the hero SKUs in this segment for Plex? And also, how did it compare, in the fact that, Saugata, you've seen a lot of brands, maybe leaving apart one or two D2C brands, who've sort of saturated close to this ₹500 to ₹700 kind of range?

Speaker #2: So what sort of can give us the confidence to believe that Plex will not see that kind of a limitation? And you mentioned that to look at it more as a D2C brand.

Speaker #2: So that was my first question.

Speaker #3: Yeah. I don't want to get into I think Plex has pivoted a lot to hair and skin food and obviously there are some hero SKUs where two, three capabilities are basically ability to spot a trend and ride a trend.

Saugata Gupta: I think Plix has pivoted a lot to hair and skin food, and obviously, there are some hero SKUs where two, three capabilities are basically ability to spot a trend and ride a trend. Therefore, there's a very good innovation engine. They have a very good digital marketing engine, especially in both the influencer and content, which is a source of competitive advantage. Having a strong AOV in a D2C business and the fact that the D2C part of the component being strong and profitable gives the edge. You are right that obviously Plix at INR 800 crore will not going to grow 30% and 40%. Also, we are not just chasing growth, we are also ensuring that this brand also is profitable.

Speaker #3: So therefore, there's a very good innovation engine. They have a very good digital marketing engine, especially with the influencer and content, which is a source of competitive advantage.

Speaker #3: And having a strong AOV and a D2C business and the fact that the D2C part of the component being strong and profitable gives the edge.

Speaker #3: Now, coming to the kind of you are right that obviously Plex are the 800 grower will not going to grow 30, 40%. And also, we are not just chasing growth.

Speaker #3: We are also ensuring that this brand also is profitable. Having said that, at this level, I'm sure there is an opportunity for the brand to get into a little bit into modern trade, get into beauty outlets, and of course, given the wide spectrum, it's not a single category brand.

Saugata Gupta: Having said that, at this level, I am sure there is an opportunity for the brand to get a little bit into Modern Trade, get into beauty outlets. Of course, given the wide spectrum, it is not a single category brand, there are legs to grow.

Speaker #3: There are legs to grow.

Speaker #2: Understood. That's very clear. Two quick clarifications on Parachute. We had mentioned about taking a 10% price cut in Q4 in the non-MLH packs. So that has been the only price that we've taken for Parachute.

Nihal Maheshsham: Understood. That is very clear. Two quick clarifications on Parachute. We had mentioned about taking a 10% price cut in Q4 in the non-MLH class. That has been the only price cut you have taken for Parachute. Is that understanding right?

Nihal Mahesh Jham: Understood. That is very clear. Two quick clarifications on Parachute. We had mentioned about taking a 10% price cut in Q4 in the non-MLH class. That has been the only price cut you have taken for Parachute. Is that understanding right?

Speaker #2: Is that understanding right?

Speaker #3: Exactly. Exactly.

Saugata Gupta: Exactly.

Speaker #2: Got it. And just one last thing. Foods is obviously grown 43%, but this includes obviously cosmix and 4,700 also coming in. So X of that, what would be the growth in the foods portfolio?

Nihal Maheshsham: Just one last thing. Foods has obviously grown 43%, but this includes, obviously, Cosmix and 4700BC also coming in. Ex of that, what will be the growth in the foods portfolio? The organic growth.

Nihal Mahesh Jham: Just one last thing. Foods has obviously grown 43%, but this includes, obviously, Cosmix and 4700BC also coming in. Ex of that, what will be the growth in the foods portfolio? The organic growth.

Speaker #3: The organic growth of this one is in double digits.

Saugata Gupta: The organic growth of this one is double digits.

Speaker #2: Double digit. Sure. That was it from my side. Thank you so much, team.

Nihal Maheshsham: Double digits. Sure. That was it from my side. Thank you so much, team.

Nihal Mahesh Jham: Double digits. Sure. That was it from my side. Thank you so much, team.

Speaker #1: Thank you. Your next question comes from the line of Arnab Mitra with Goldman Sachs. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Arnab Mitra with Goldman Sachs. Please go ahead.

Operator: Thank you. The next question comes from the line of Arnab Mitra with Goldman Sachs. Please go ahead.

Speaker #3: Yeah. Hi, team. Congratulations on a very strong quarter. My first question is on Saffola edible oil. Is there any impact from the very fast growth we are seeing in cold-pressed oils on the Saffola consumer, in your understanding?

Arnab Mitra: Hi, team. Congratulations on a very strong quarter. My first question is on Saffola Edible Oil. Is there any impact from this very fast growth we are seeing in cold-pressed oils on the Saffola Gold core consumer in your understanding, and your own foray into cold-pressed oils, how is it progressing and how do you think about that segment as a new segment to operate in?

Speaker #3: And your own foray into cold pressed oils, how is it progressing? And how do you think about that segment as a new segment to operate in?

Speaker #2: I believe that it's a very good growth engine. In fact, one of the things we are looking at, as far as Saffola is concerned, is ensuring that we maintain a threshold level of profitability.

Saugata Gupta: I think, I believe that it's a very good growth engine, and in fact, one of the things we are looking at in Saffola is concerned is ensuring that we maintain a threshold level of profitability. We are not seeing any impact on a Saffola Gold or a total user. They are very loyal, respond users. The entry point Saffola is a little more commoditized, and this is the one which we are selectively reducing in terms of both share of contribution of the packs and ensuring I don't want consumers at below a threshold level of profitability. I think cold-pressed is a category of the future, and therefore we are investing in cold-pressed oil, and I believe by the next year it will be a sizable portion of the Saffola business.

Speaker #2: So we are not seeing any impact on Saffola Gold or a total user. They are very loyal—this one user. The entry point Saffola is a little more commoditized.

Speaker #2: And this is the one which we have selectively reducing their in terms of both the terms of share of contribution of the packs and ensuring a I don't want consumers at below a threshold level of profitability.

Speaker #2: I think cold press is a category of the future, and therefore we are investing in cold press oil. I believe that by next year, it will be a sizable portion of the Saffola business.

Speaker #2: It also makes sense if multiple large players invest behind the category and grow the category. And it's a category of the future. And that is what we are pivoting to.

Saugata Gupta: It also makes sense if multiple large players invest behind the category and grow the category. It's a category of the future, that is what we are pivoting to, and we are selectively making this choice that we don't want a certain part of the Saffola business in some channels below a threshold level of profitability.

Speaker #2: And we are selectively making this choice that we don't want a certain part of the Safola business in some channels below a threshold level of profitability.

Arnab Mitra: I've got it.

Saugata Gupta: Just to answer your question, Saffola Gold has not got impacted because of cold press.

Speaker #2: So just to answer your question, Safola gold has not got impacted because of cold press.

Saugata Gupta: Just to answer your question, Saffola Gold has not got impacted because of cold press.

Speaker #3: Got it. And as you look at your own cold press business, does it have a margin structure which is attractive enough for you to invest in that business?

Arnab Mitra: Got it. As you look at your own cold press business, does it have a margin structure which is attractive enough for you to invest in that business? Because you are advertising, I just want to understand.

Speaker #3: Because you are advertising that you want to understand it.

Speaker #2: It is far superior to the core Safola edible oil gross margin.

Saugata Gupta: It is far superior to the core Saffola edible oil gross margin.

Arnab Mitra: Got it. My second question was on your premium personal care. There you've done an INR 450 crore plus ARR. There seems to have been some significant improvement there sequentially and also YOY. Is this to do with the launch of shampoo and generally the strategy? I mean, do you want to play it as a mainstream shampoo player or what is the thought process behind this entry into shampoo?

Speaker #3: Got it. Got it. My second question was on your premium personal care. There you've done a 450 crore plus ARR. That seems to have been some significant improvement there sequentially and also YOY.

Speaker #3: So is this to do with the launch of shampoo and generally the strategy? I mean, do you want to play it as a mainstream shampoo player or how do you what is the thought process behind this entry into shampoo?

Speaker #2: I think we want to, obviously, play as a mainstream shampoo player. I think if you look at it, I think we now have learnings.

Saugata Gupta: We want to obviously play as a mainstream shampoo player. If you look at it, we now have learnings. We have a shampoo portfolio in almost all the big international markets. We have done relatively well. I wish I had launched this 10 years ago, but it's maybe 10 years late, but better late than never, and I believe that with a strong equity, people want natural as a space for Parachute Advansed. I think the mix looks good, and just like we have done fairly well in Bangladesh or Middle East with Parachute, we are extremely confident that we will get a critical mass, and therefore our first step is to get INR 100 crore in the first year.

Speaker #2: We have a shampoo portfolio in almost all the big international markets. We have done relatively well. I wish I had launched this 10 years ago, but it's maybe 10 years late, but better late than never.

Speaker #2: And I believe that with a strong equity, people want naturals as a space for Parachute Advanced. I think the mix looks good. And just like we have done fairly well in Bangladesh or Middle East with I mean, Parachute, we are extremely confident that we will be get a critical mass.

Speaker #2: And therefore, our first step is to get 100 crores in the first year. So far, the I think it's very encouraging. And what has also helped is because of K2, we now have very good quality direct market execution.

Saugata Gupta: So far, I think it's very encouraging, and what has also helped is because of Setu, we now have very good quality direct market execution, and we don't want this product to just go through wholesale, but great market execution. Therefore, the results are encouraging, and I believe over the next three, four years, this will be one more big pivot of growth and then our premiumization of the core along with Almond.

Speaker #2: And we don't want this product to just go through wholesale, but to have great market execution. Therefore, the results are encouraging, and I believe over the next three to four years, this will be one more big pivot of growth.

Speaker #2: And then our premiumization of the core along with Amant.

Speaker #3: Got it. Got it. Very helpful, Shagat. Thanks. That's it from my side. All the best.

Arnab Mitra: Got it. Very helpful, Saugata. Thanks. That's it from my side. All the best.

Speaker #1: Thank you. Your next question comes from the line of Ajay Thakur with Anandrathi Securities. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Ajay Thakur with Anand Rathi Securities. Please go ahead.

Operator: Thank you. The next question comes from the line of Ajay Thakur with Anand Rathi Securities. Please go ahead.

Speaker #4: Hello, sir. Thanks for taking my question. So I wanted to understand a bit more on the Wahoo growth. If you can just throw some light in terms of the breakup between the value and the volume growth in this segment for Wahoo.

Ajay Thakur: Hello, sir. Thanks for taking my question. Wanted to understand a bit more on the Wah! Wah! growth. If you can just throw some light in terms of the breakup between the value and the volume growth in this segment for Wah! Wah! Given the fact that the base might be catching up with Wah! Wah! maybe in a quarter or two post GST rate cut. Can we expect this momentum to be maintained going forward, like a mid-teen kind of a growth?

Speaker #4: And given the fact that the base might be catching up with Wahoo maybe in a quarter or two post-GHG rate cut, can we expect this momentum to be maintained going forward, like a mid-teens kind of growth?

Speaker #3: Yes. I think Saugata alluded to this in his opening remarks—that while we are focusing on the mid and premium segment, and that segment has delivered high-teens growth in volume terms, the gross value growth is even higher.

Saugata Gupta: Sir, I think Saugata alluded to this on his opening remarks that while we are focusing on mid and premium segment, that segment has delivered high teen growth in volume terms, of course, value growth is even higher. Now, going ahead, we definitely expect that we will maintain the trajectory of double digits. We will definitely try for even delivering high teen growth. We are fairly confident because it has definitely the kind of investment that we have done has shown good returns. Plus also the continuous investment in SETU is something which is really helping us grow in this segment. Yes, we are confident that we will be able to maintain this trajectory.

Pawan Agrawal: Sir, I think Saugata alluded to this on his opening remarks that while we are focusing on mid and premium segment, that segment has delivered high teen growth in volume terms, of course, value growth is even higher. Now, going ahead, we definitely expect that we will maintain the trajectory of double digits. We will definitely try for even delivering high teen growth. We are fairly confident because it has definitely the kind of investment that we have done has shown good returns. Plus also the continuous investment in SETU is something which is really helping us grow in this segment. Yes, we are confident that we will be able to maintain this trajectory.

Speaker #3: Now, going ahead, we definitely expect that we will maintain the trajectory of double digits. We will definitely try for even delivering high-team growth. So we are fairly confident because it has definitely the kind of investment that we have done has shown good returns.

Speaker #3: Plus, the continuous investment in C2 is something that is really helping us grow in this segment. So yes, we are confident that we'll be able to maintain this trajectory.

Ajay Thakur: Understood. Continuing with the earlier question of an earlier participant in terms of the Parachute shampoo launch, what would be our aspiration in terms of the shampoo segment? Would we be looking at terms of capturing certain market share in this segment, being a number 2, number 3 player? What would be the aspiration? Also, how are we placed in terms of the launch? Are we launched only in certain specific markets so far, or is it a kind of a national launch? For personal care.

Speaker #4: Understood. And continuing with the earlier question from the previous participant, regarding the Parachute shampoo launch, what would be our expectations in terms of the shampoo segment? Would we be looking at capturing a certain market share in this segment—perhaps aiming to be the number two or number three player?

Speaker #4: What would be the expectation? And also how are we placed in terms of the launch? Are we launch only in certain specific markets so far or is it a kind of a national launch for Parachute shampoo?

Saugata Gupta: It's probably a national launch as we speak in this last quarter. I think we'll take 1 year at a time. It's a large category. I think we'll have to execute it well, be patient, be resilient, and make it big. There's little steps, and someday it will become a critical mass. As I said, in line with our fewer, bigger, bolder, faster in terms of the core, I think shampoo and Almond are two big bets, similarly, cold press oil and maybe muesli, these are big bets, and we hope to get critical mass very soon in all these.

Speaker #2: It's probably a national launch. As we speak in this kind of the last quarter, I think we'll take one year at a time. And as I said that we will take it's a large category.

Speaker #2: I think we'll have to execute it well. Be patient. Be resilient. And make it big. So there's little steps and someday it will become a critical mass.

Speaker #2: But as I said in line with our fewer bigger bolder faster, in terms of the core, I think shampoo and Amand are two big bets.

Speaker #2: And similarly, cold press oil and maybe muesli, these are big bets. And we hope to get critical mass very soon in all these.

Speaker #4: Understood. Quite helpful. Thanks.

Ajay Thakur: Understood. Quite helpful. Thanks.

Speaker #1: Thank you. Your next question comes from the line of Sadarkh Negandhi with CWC. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Siddharth Ghandhy with CLSA. Please go ahead.

Operator: Thank you. Your next question comes from the line of Siddharth Ghandhy with CLSA. Please go ahead.

Siddharth Ghandhy: Hi. Congrats on a good set of numbers. Just a couple of questions. First, on understanding your perspective on how you're seeing channels play out and, given the growth into quick commerce, how do you see that having an impact on, A, your advertising spend, B, your margin profile given the relative customer concentration there? That is one. The second one that I wanted to understand is, if we look at the India growth, a large part of it is obviously driven by the core business, but there also seems to be good growth coming from the non-standalone but India businesses. Which among the digital-first premium personal care brands are you seeing on a faster path to profitability there? Yeah, those are my two questions.

Sidharth Negandhi: Hi. Congrats on a good set of numbers. Just a couple of questions. First, on understanding your perspective on how you're seeing channels play out and, given the growth into quick commerce, how do you see that having an impact on, A, your advertising spend, B, your margin profile given the relative customer concentration there? That is one. The second one that I wanted to understand is, if we look at the India growth, a large part of it is obviously driven by the core business, but there also seems to be good growth coming from the non-standalone but India businesses. Which among the digital-first premium personal care brands are you seeing on a faster path to profitability there? Yeah, those are my two questions.

Speaker #3: Hi, congratulations on a good set of numbers. Just a couple of questions: First, can you share your perspective on how you’re seeing channels play out, and given the growth into e-commerce, how do you see that impacting (A) your advertising spend and (B) your margin profile, given the relative customer concentration there?

Speaker #3: That was one. The second one that I wanted to understand is if we look at the India growth, right, a large part of it is obviously driven by the core business, but there also seems to be good growth coming from the non-standalone, but India businesses, right?

Speaker #3: Which among the digital first premium personal care brands, are you seeing on a faster path to profitability there? Yeah, those are my two questions.

Saugata Gupta: Okay. Channel. See, I think I am a little old-fashioned person. I believe in and theory and not or theory as far as channel is concerned. What has happened over the last five, seven years is that the entry barriers to the organized trade has significantly gone down. Today, anybody with some capital can set up 100 co-brands, throw money, and get some market share. What has not changed is my belief, India being such a large country, the entry barriers towards having a solid GT distribution remains, and especially in rural India, middle India. This is something which we don't talk about because we only see that people like us and the rural part of it. We have consciously invested behind this and strategy. In the last three, four years, I think we have ensured that our distribution partners make significant ROI profitability.

Speaker #2: Okay, channel, yeah. See, I think I am a little old-fashioned person. I believe in an 'and' theory and not an 'or' theory as far as channel is concerned.

Speaker #2: What has happened over the last five to seven years is that the entry barriers to the organized trade have significantly gone down. So today, anybody with some capital can set up a ₹100 crore brand, throw money, and get some market share.

Speaker #2: But what has not changed is my belief India being such a large country, the entry barriers towards having a solid GT distribution remains and especially in rural India, middle India, this is something which we don't talk about because we only see that people like us.

Speaker #2: And the rural part of it: we have consciously invested behind design strategy. In the last three or four years, I think we have ensured that our distribution partners make significant ROI and profitability.

Speaker #2: We invest behind technology. We invest behind direct distribution. And therefore, GT can be a source of continued advance for sustainable competitive advantage. We'll continue to be in the next five, seven years.

Saugata Gupta: We invest behind technology, we invest behind direct distribution, and therefore GT can be a source of continual advantage for us. Sustainable competitive advantage will continue to be in the next five, seven years. We believe alternate channels are a source of driving premiumization as well as a test market for innovation, and we have been avoiding cannibalistic growth. Therefore, I think that's the reason if you have multiple levers of growth and not depend on one channel. In fact, that's one of the shifts we did two, three years ago, and we realized that we must pivot and get, and that's when the operation or other Project Setu started. I believe India is a place of immense opportunities, and there is opportunities for all the channels to grow.

Speaker #2: We believe alternate channels are a source of driving premiumization. As well as a test market for innovation. And we have been avoiding cannibalistic growth.

Speaker #2: So therefore, I think that's the reason if you have multiple levers of growth and not depend on one channel. In fact, that's one of the shifts we did two, three years ago and we realized that we must pivot and get and that's when the operation or other projects, say, to started.

Speaker #2: So I believe India is a place of immense opportunities and there is opportunities for all the channels to grow. Having said that, I think quick commerce has established itself.

Saugata Gupta: Having said that, I think quick commerce has established itself, and I think quick commerce is unique to India where because of certain factors, quick commerce is bound to grow, and we are investing behind quick commerce. What helps us is those six, seven digital brands, and therefore we are a very big quick commerce as well as this one place. Having said that, one trend we are seeing is there's been a slight slowing down of growth in Modern Trade and the marketplace quick commerce compared I mean, the marketplace e-commerce in the last couple of quarters over the last two years.

Speaker #2: And I think quick commerce is its unique to India where because of certain factors, quick commerce is bound to grow. And we have investing.

Speaker #2: Behind quick commerce, what helps us is those six, seven digital brands and therefore we are a very big quick commerce as well as this one players.

Speaker #2: Having said that, one trend we are seeing is there's been a slight slowing down of growth in modern trade and the marketplace quick commerce compare.

Speaker #2: I mean, the marketplace e-commerce in the last couple of quarters over the last two years.

Speaker #3: Understood.

Siddharth Ghandhy: The second one on digital.

Speaker #2: The second question on digital, I think all the brands are doing well. But as I alluded to that, for us, a 20, 25 percent growth with profitability is much more important than growing 40, 50 percent and burning cash.

Saugata Gupta: The second one on digital. The second question on digital, I think all the brands are doing well, as I alluded to that, for us, a 20% to 25% growth with profitability is much more important than growing 40% to 50% and burning cash. All the brands are doing fairly well. Beardo is on double-digit profitability. Plix is in high single digit, tending towards double digit. We acquired Cosmix, which was already on high teens profitability. We are seeing a path to profitability for the other brands over the next 12 to 18 months, the burn is now low, therefore, we will grow it responsibly at the same time.

Saugata Gupta: The second question on digital, I think all the brands are doing well, as I alluded to that, for us, a 20% to 25% growth with profitability is much more important than growing 40% to 50% and burning cash. All the brands are doing fairly well. Beardo is on double-digit profitability. Plix is in high single digit, tending towards double digit. We acquired Cosmix, which was already on high teens profitability. We are seeing a path to profitability for the other brands over the next 12 to 18 months, the burn is now low, therefore, we will grow it responsibly at the same time.

Speaker #2: All the brands are doing fairly well. Beardo is on double-digit profitability. Clicks is on high single digits, tending towards double digits. We acquired Cosmix, which was already on high-teens profitability.

Speaker #2: We are seeing a path to profitability for the other brands over the next 12 to 18 months. But the burn is now low. And therefore, we will grow it responsibly.

Speaker #2: At the same time, and I think the significant, as you see, a part of that EBITDA growth which you're going to witness this year is also contributed by the profitability movement in both food and digital brands.

Saugata Gupta: I think the significance, as you see, a part of that EBITDA growth which you're going to witness this year is also contributed by the profitability movement in both food and digital brands, some through the mix and some obviously through the benefit which we have got from raw material.

Speaker #2: Some of it came through the mix, and some, obviously, through the benefit we have got from raw material.

Speaker #3: Sure. Yeah. In fact, that's very evident if you just look at it on an EBIT level, because that's where the segment comes in, right? There is a clear 40% jump in your non-standalone India EBIT.

Siddharth Ghandhy: Sure. Yeah. In fact, that's very evident where if you just look at on an EBIT level because that's where the segment comes in. There is a clear 40% jump in your non-standalone India EBIT. That is clear. Thanks. This is clear. Just to follow up on that, it is interesting you mentioned that quick commerce is seeing growth, has established itself, you're seeing a slowdown in organized trade and that channel. Considering

Sidharth Negandhi: Sure. Yeah. In fact, that's very evident where if you just look at on an EBIT level because that's where the segment comes in. There is a clear 40% jump in your non-standalone India EBIT. That is clear. Thanks. This is clear. Just to follow up on that, it is interesting you mentioned that quick commerce is seeing growth, has established itself, you're seeing a slowdown in organized trade and that channel. Considering

Speaker #3: So that is clear. Thanks. Thanks. This is clear. Just to interesting you mentioned, right, that quick commerce is seeing growth as established itself, but you're seeing a slowdown in organized trade and that channel.

Speaker #3: And considering, right.

Saugata Gupta: Sir, let me clarify. I said relative slowdown. I'm not saying a slowdown, but compared to the past. That I want to make myself clear.

Speaker #2: Just let me clarify. I said relative slowdown. I'm not saying a slowdown, but compared to the past. So that I want to make myself clear.

Speaker #3: Sure. Clear. So sorry. I did not mean to allude in any way that GT is I mean, I'm equally clear on the fact that GT is probably still going to remain the dominant channel.

Siddharth Ghandhy: Sure. Clear, Saugata. Sorry, I did not mean to allude in any way that GT is panning. I'm equally clear on the fact that GT is probably still going to remain the dominant channel. That part is clear. What I wanted to understand is, on quick commerce, considering that a large part of quick commerce is really channel shift rather than incremental demand, right? Are you seeing that channel shift happening more from modern trade or from general trade?

Sidharth Negandhi: Sure. Clear, Saugata. Sorry, I did not mean to allude in any way that GT is panning. I'm equally clear on the fact that GT is probably still going to remain the dominant channel. That part is clear. What I wanted to understand is, on quick commerce, considering that a large part of quick commerce is really channel shift rather than incremental demand, right? Are you seeing that channel shift happening more from modern trade or from general trade?

Speaker #3: That part is clear. What I wanted to understand is on quick commerce, considering that a large part of quick commerce is really channel shift rather than the incremental demand.

Speaker #3: Right? Are you seeing that channel shift happening more from modern trade or from general trade?

Speaker #2: Very difficult to say it. I think it's coming from everything. But I believe there is a certain shopper who is slightly different which is less price sensitive, maybe more wanting convenience.

Saugata Gupta: Very difficult to say. I think it's coming from everything, but I believe there is a certain shopper who is slightly different, which is less price sensitive, maybe more wanting convenience, "I want it now." Also the kind of packs. We ensure that there is a channel pack architecture for each channel so that it is not cannibalistic, and therefore we maximize each channel. Also ensure that, I think we are also test marketing new products through this quick commerce opportunity. We are seeing it slightly differently so that we reduce the cannibalistic sale.

Speaker #2: I want it now. Also, the kind of tax we ensure that there is a channel pack architecture for each channel so that it is not cannibalistic.

Speaker #2: And therefore, we maximize each channel. And also ensure that, I think, we have also test marketed new products through this quick commerce opportunity. So we are seeing it slightly differently.

Speaker #2: And so that we reduce the cannibalistic sales.

Speaker #3: Yeah, very helpful. Thank you, and all the best.

Siddharth Ghandhy: Clear. Very helpful. Thank you. All the best.

Sidharth Negandhi: Clear. Very helpful. Thank you. All the best.

Speaker #2: Thank you.

Saugata Gupta: Thank you.

Speaker #1: Thank you. Your next follow-up question comes from the line of Avneesh Roy with Walmart. Please go ahead.

Operator 2: Thank you. Your next follow-up question comes from the line of Abneesh Roy with Nuvama. Please go ahead.

Operator: Thank you. Your next follow-up question comes from the line of Abneesh Roy with Nuvama. Please go ahead.

Speaker #3: Yeah. Thanks. Two follow-up questions. One is slightly medium-term structural question on Sepola. If I see the target audience of Sepola, there is a lot of commonality with customer who uses air fryer.

Abneesh Roy: Yeah. Thanks. Two follow-up questions. One is slightly medium-term structural question on Saffola. If I see the target audience of Saffola, there is a lot of commonality with customer who uses air fryer and GLP-1. If you see air fryer, the pricing has become very democratized, and there's very aggressive advertising also. Same thing is with GLP-1 also. I wanted to understand, yes, you're focusing on profitable growth in Saffola for the past few quarters and maybe years, but medium-term volume growth itself, is there a big question mark on Saffola because a lot of penetration has happened, and if the same customer is now cutting down because of air fryer and GLP-1, volume growth itself will become a big question mark. Volume decline is my question. Are you worried on the volume decline?

Speaker #3: And GLP-1. And if you see air fryer, the pricing has become very democratized. And there's very aggressive advertising also. And same thing is with GLP-1 also.

Speaker #3: So I wanted to understand, yes, your focusing on profitable growth in Sepola, for the past two quarters and maybe years. But medium-term volume growth itself, is there a big question mark on Sepola because a lot of our penetration has happened.

Speaker #3: And if the same customer is now cutting down because of air fryer and GLP-1, volume growth itself will become a big question mark. Volume decline is my question.

Speaker #3: How are you worried on the volume decline?

Speaker #2: I think what we are doing is a structural reset of the portfolio, saying that—the reset takes one or two years—where we are saying that I don't want a certain set of what I call variants which don't make a threshold cut in terms of profitability.

Saugata Gupta: I think what we are doing is a structural reset of the portfolio, saying that a reset takes one or two years, where we are saying that I don't want a certain set of what I call variants, which don't make a special cut in terms of profitability. Let me tell you, Saffola as a brand, for the last 20 years encouraged consumers to use the right oil, but use less oil. In line with what the prime minister has spoken, we encourage consumers, that's why the Losorb technology was being discovered and invented so that it absorbs less oil. We have been working towards a healthier India. I think we are attracting a certain set of consumers, and Saffola will continue to attract a set of consumers. Mid-single digit volume growth is absolutely fine.

Speaker #2: Let me tell you, Sepola as a brand, for the last 20 years, encourage consumers to use the right oil but use less oil. And in line with what the Prime Minister has spoken, we encourage consumers and that's why the lows of technology was being discovered and invented so that it absorbs less oil.

Speaker #2: So we have been working towards a healthier India. And I think we are attracting a certain set of consumers, and Saffola will continue to attract a set of consumers.

Speaker #2: So, mid-single-digit volume growth is absolutely fine. Having said that, I think it's pivoting towards food, and maybe in a couple of years, food will become the bigger part of the Sepola architecture.

Saugata Gupta: Mid-single digit volume growth is absolutely fine. Having said that, I think it's pivoting towards food. Maybe in a couple of years, food will become the bigger part of the Saffola architecture.

Saugata Gupta: Having said that, I think it's pivoting towards food. Maybe in a couple of years, food will become the bigger part of the Saffola architecture.

Speaker #3: Last question. You have essentially mastered and pioneered the D2C acquisitions. So last one, two years, whatever acquisitions you have done, say 4,700 Cosmix and some of the overseas brands, how much will be Marico or your involvement in day-to-day?

Abneesh Roy: Last question. You have essentially mastered and pioneered the D2C acquisitions. Last one, two years, whatever acquisitions you have done, say 4700BC, Cosmix, and some of the overseas brands. How much will be Marico or your involvement in day-to-day? How is the transition working in terms of the management?

Speaker #3: So how is the transition working in terms of the management?

Speaker #2: So as you know that these brands are just come to us this year, early this year, all the three brands. And for a minimum period, at least three years, some of the we learn these and today, I think the way we are looking at it is we have now, as I talked about, we look at from a platform point of view.

Saugata Gupta: As you know that these brands have just come to us this year, early this year, all the three brands. For a minimum period, at least three years, we learn these. Today, I think the way we are looking at it is, we have now, as I talked about, we look at from a platform point of view. We now have a BPC platform. We have a foods platform with common expertise and capability. They learn from each other, share resources, they share costs. Yes, I think this is the exciting part of the portfolio. In our structure, we have ensured that you have a CEO India business, you have a CEO international business, and I spend definitely a lot of time in digital. It's equally exciting.

Speaker #2: Now we have a BPC platform. We have a foods platform with common expertise and capability. They learn from each other, share resources. They share costs.

Speaker #2: And yes, I think this is the exciting part of the portfolio. In our structure, we have ensured that you have a CEO for the India business.

Speaker #2: You have a CEO international business. And I spend definitely a lot of time in digital. It's equally exciting. And I think we now have a playbook so that we can have tuck in into the platform rather than looking at a fragmented acquisition.

Saugata Gupta: I think we now have a playbook so that we can tuck in into the platform rather than looking at a fragmented acquisition. As I had alluded to in the last call, when we did a special call with all of you on the digital structure, we are more or less done. We have still one or two things to do. I think we will continue to experiment. I think this began as an iterative thing, and we now have a pretty structured playbook, and we are pretty confident to have a INR 4,000 crore early teens, mid kind of an EBITDA business by 2030.

Speaker #2: And as I had alluded to in the last call when we did a special and called with all of you on the digital structure, we are more or less done.

Speaker #2: We have still one or two things to do. But I think we will continue to experiment. I think this began as an iterative thing.

Speaker #2: And we have now have a pretty structured playbook. And we are pretty confident to have a 4,000 crore early teens, mid kind of a beta business by 2030.

Speaker #3: So one follow-up on the shampoo bit. So is there any learning from your skin lotion moisturizer business because that again, great packaging, clearly the parachute brand extension, those things are good.

Abneesh Roy: One follow-up on the shampoo bit. Is there any learning from your skin lotion moisturizer business? Because that again, great packaging, clearly the Parachute brand extension, those things are good. Are you happy with where the scale-up has happened over the past few years? Are there some learnings because both are segments where multinationals really dominate, and there are a few Indian companies also which are very strong there. Would you want to be a niche player? Yes, you mentioned INR 100 crore kind of ambition and take one year at a time, but if you could just correlate with the skin lotion, the moisturizer brand, and that business, what are the commonalities and what are the learnings from there?

Speaker #3: But are you happy with where the scale-up has happened over the past few years? And are there some learnings, because both are segments where multinationals really dominate, and there are a few Indian companies also which are very strong there.

Speaker #3: So would you want to be a niche player? Yes, you mentioned 100 crore kind of an ambition and take one year at a time.

Speaker #3: But if you could just correlate with the skin lotion, the moisturizer brand, and that business, what are the commonalities and what are the learnings from there?

Speaker #2: I think firstly, I think two things. On the body lotion as a category, the penetration is low. With global warming and winter shrinking, I think the category has not grown significantly.

Saugata Gupta: Firstly, two things. On the body lotion as a category, the penetration is low. With global warming and winter shrinking, I think the category has not grown significantly. The category has also pivoted towards a low margin in terms of MT-driven brands, and therefore, we said that this is something which we don't want to participate, because even if I get 10 or 15 in line with a fewer, bigger, bolder, that doesn't fit in. Okay? Now shampoo, we have proven the model and just to assure all of you that in most of the international markets we have successfully competed with multinationals. Our growth rate has been pretty good on the shampoo category. It's not in, say, in Bangladesh now it's year four or year five. In Middle East, it's year two, year three, where it has got sustained growth.

Speaker #2: And the category has also pivoted towards a low margin in terms of OT-driven brands. And therefore, we said that this is something which we don't want to participate in, because even if I get 10 or 15, in line with a few bigger, bolder ones, it doesn't fit in.

Speaker #2: Okay. Now, shampoo, we have proven the model and just to assure all of you that in most of the international markets, you have we have successfully competed with multinationals.

Speaker #2: Our growth rate has been pretty good on the shampoo category. It's not in saying Bangladesh now, it's year four or year five. In Middle East, it's year two, year three, where it has got sustained growth.

Saugata Gupta: It's not in, say, in Bangladesh now it's year four or year five. In Middle East, it's year two, year three, where it has got sustained growth. We have a proven model. I think in India, shampoo category is very large, and Parachute Advansed is a very strong equity. We have significant distribution advantages. I think the right time when our execution engine is at its peak, we have a very focused allocation strategy. The reason I don't want to give a three-year, five-year vision in today's world, we'll take one year at a time, but I am extremely confident that we'll do fairly well in this. As I said, it's a very large category.

Speaker #2: We have a proven model. I think in India, shampoo category is very large. And parachute advanced is a very, very strong equity. We have significant distribution advantages.

Saugata Gupta: We have a proven model. I think in India, shampoo category is very large, and Parachute Advansed is a very strong equity. We have significant distribution advantages. I think the right time when our execution engine is at its peak, we have a very focused allocation strategy. The reason I don't want to give a three-year, five-year vision in today's world, we'll take one year at a time, but I am extremely confident that we'll do fairly well in this. As I said, it's a very large category.

Speaker #2: I think the right time is when our execution engine is at its peak and we have a very focused allocation strategy. So, the reason I don't want to give a three-year or five-year vision in today's world is that we'll take one year at a time.

Speaker #2: But I am extremely confident that we'll do fairly well in this. And as I said, it's a very, very large category.

Speaker #3: Sure. Thank you. That's all for me. Thanks a lot.

Abneesh Roy: Sure. Thank you. That's all from me. Thanks a lot.

Speaker #1: Thank you. Ladies and gentlemen, we take that as a last question for today. I now hand the conference over to the management for closing comments.

Operator 2: Thank you. Ladies and gentlemen, we take that as our last question for today. I now hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, we take that as our last question for today. I now hand the conference over to the management for closing comments.

Speaker #3: Thanks for listening in to conclude the we will started the year on a very strong note with multi-quarter high performance across key metrics. Supported by robust business fundamentals and disciplined execution.

Pawan Agrawal: Thanks for listening in. To conclude, we started the year on a very strong note with multi-quarter high performance across key metrics, supported by robust business fundamentals and disciplined execution. While the near-term macro environment is evolving, we are confident in our ability to navigate it effectively and deliver our FY aspiration to cross INR 15,000 crore mark, and at the same time aim for 20% EBITDA growth. We would remain focused on driving consistent, profitable and sustainable value creation for all stakeholders. That's it from our side. Should you have any further queries, please feel free to reach out to our IR team and they'll be happy to address. Thank you, and have a great evening.

Speaker #3: While the near-term macro environment is evolving, we are confident in our ability to navigate it effectively and deliver our fully respiration to cross 15,000 crore mark.

Speaker #3: And at the same time, aim for 20% EBITDA growth. We would remain focused on driving consistent profitable and sustainable value creation for all stakeholders.

Speaker #3: That's it from our side. Should you have any further queries, please feel free to reach out to our IR team and they'll be happy to address.

Speaker #3: Thank you, and have a great evening.

Operator 2: Thank you. On behalf of Marico Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of Marico Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.

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Q1 2027 Marico Ltd Earnings Call

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