Marico’s digital-first brands surpass USD 120M in annual revenue

INDIA – Marico has reached a significant digital milestone, with its online brands crossing ₹1,000 crore (USD 120 million) in Annual Recurring Revenue (ARR). 

This achievement is part of Marico’s larger growth strategy, which targets 25% of its overall India revenue to come from new segments such as premium personal care and food, powered by its digital-first brands. 

CEO Saugata Gupta highlighted that this diversified portfolio, including brands such as Beardo, Plix, True Elements, Just Herbs, Studio X, and Pure Sense, is on a strong growth trajectory and is expected to contribute substantially to the company’s revenue over the next three years.

The company aims to scale its overall turnover to ₹20,000 crore (USD 2.4 billion) by 2030, doubling its FY25 revenue milestone of ₹10,000 crore (USD 1.2 billion). 

Marico plans 25% revenue growth in FY26 alone and aims to increase ARR 2.5x from FY24 levels, while achieving a 10% EBITDA margin in digital brand operations by FY27. 

Brands like Beardo have almost reached profitability with double-digit EBITDA, and wellness brand Plix has achieved break-even, while others like True Elements and Just Herbs are on track to break even within the next 18 months. 

The food segment, including brands like Saffola and Coco Soul, has also crossed the ₹1,000 crore ARR mark and is expected to sustain healthy growth momentum.

Marico’s strategy reflects a shift in the traditional FMCG space where digital and D2C (Direct-to-Consumer) approaches, once perceived as growth-at-margin-cos, are now achieving sustainable growth and profitability. 

This reinforces Marico’s goal of significantly elevating its digital brand revenue contribution and supporting aggressive expansion plans in premium personal care and wellness through innovation and market diversification.

Marico Q2FY26 financial performance highlights

Marico recently reported a marginal decline in its Q2 net profit for FY 2025-26, slipping slightly from ₹433 crore (USD 52.2 million) to ₹432 crore (USD 52 million), primarily due to margin pressures. 

Despite this, the company’s revenue soared by over 30% year-on-year to ₹3,482 crore (USD 420 million), from ₹2,664 crore (USD 321 million) in the previous year’s quarter. 

The decline in net profit is primarily due to margin pressures from high commodity prices and inflation, which adversely affected gross margins.

Marico’s gross margin contracted by 810 basis points (or 8.1 percentage points) year over year, reflecting higher costs for key commodities, including copra and other raw materials.

Despite margin compression, Marico’s revenue from operations grew remarkably, driven by strong domestic demand and international market expansion. 

The domestic segment alone contributed ₹2,667 crore (USD 321 million), up nearly 34.76%, while the international market contributed ₹815 crore(USD 98 million), up 19%. 

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.