Marico Ltd Management Discussions

ECONOMIC SCENARIO

Global

At the start of the year under review, the global economy was expected to sustain a modest recovery. The macroeconomic outlook turned volatile in the recent months amidst the ongoing geopolitical developments, particularly in the Middle East, leading to some variability in global energy markets and operating environment.

Multilateral institutions have since revised their global growth outlook, citing the combined effects of elevated energy prices, tighter financial conditions, and softer global demand. Despite these headwinds, certain structural growth drivers remain intact, including ongoing investments in digital infrastructure and artificial intelligence. Near-term global economic conditions are being influenced by geopolitical developments, energy market dynamics and fiscal conditions, alongside accelerating investments in digital and AI, collectively shaping demand patterns and cost structures.

India

Indias economic growth remained robust during the year, supported by strong domestic demand and sustained public investment. Growth was driven by resilient private consumption and investment momentum. Consumption benefitted from easing inflationary pressures and supportive fiscal measures, while investment was aided by declining interest rates and continued government capital expenditure. External demand remained relatively stable, with moderate export growth alongside higher imports reflecting strong domestic demand.

On the supply side, growth was led by both services and manufacturing sectors. Services activity expanded strongly, supported by financial services, real estate, professional services, trade, and hospitality. Manufacturing performance improved during the year, benefitting from strengthening domestic demand and easing input cost pressures. Agricultural output recorded moderate growth, supported by favourable weather conditions.

Inflationary pressures moderated over the course of the year, primarily driven by easing food prices and softer global commodity trends. Improved system liquidity and lower borrowing costs supported credit growth, reinforcing overall macroeconomic stability amid a volatile global backdrop.

Labour market conditions remained broadly stable with employment conditions improving in rural areas, while urban labour markets remained resilient.

Looking ahead, Indias growth outlook remains relatively resilient compared to global peers. Services and manufacturing sectors are expected to continue to drive economic activity, supported by domestic demand, policy initiatives, and improving business sentiment. Public investment is likely to remain a key anchor for infrastructure development and overall economic momentum, while agricultural performance will remain dependent on weather conditions.

According to the estimates from the Asian Development Bank, GDP growth is expected to moderate mildly in the near term before strengthening over the medium term, supported by consumption, investment, and ongoing structural reforms. Inflation is expected to remain within a manageable range, although subject to fluctuations due to food and energy prices and currency movements. Key downside risks to the outlook include heightened global uncertainties arising from geopolitical tensions, evolving trade policies, and volatility in energy prices.

Bangladesh

Bangladeshs economic growth moderated during the year with domestic demand remaining subdued amidst tight monetary and fiscal conditions, however, strong remittance inflows and relatively resilient industrial performance provided some support. The services sector experienced some moderation, while agricultural output was affected by unfavourable weather conditions.

Policy measures remained focused on maintaining macroeconomic stability, even as inflation continued to weigh on household purchasing power. Fiscal consolidation progressed, reducing the budget deficit and the monetary policy remained prudent in an effort to contain inflation and stabilize the external position. Strong growth in remittance inflows and recovering exports supported a shift towards a broadly balanced current account position. Foreign exchange reserves increased during the year to approximately four months of import cover. Greater exchange rate flexibility also helped enhance resilience.

According to estimates from the Asian Development Bank, economic growth is expected to recover gradually over the medium term, supported by improving domestic demand, a rebound in services activity, normalization of agricultural output, and improving investor sentiment. Consumption is expected to remain the primary growth driver, supported by sustained remittance inflows, while investment is likely to strengthen progressively as confidence improves and imports of capital goods recover. While near term volatility may persist due to geopolitical developments, strengthening external balances and continued policy initiatives are expected to support the economy.

Vietnam

Vietnams economy remained strong during the year, with GDP growth accelerating year-on-year. Economic expansion was driven by robust manufacturing activity, a continued recovery in tourism supporting services growth, and steady domestic demand. Industrial activity benefitted from strong export-oriented manufacturing and construction, while consumer spending remained resilient.

According to estimates from the Asian Development Bank, economic growth is expected to moderate slightly in the near term while remaining robust, supported by a significant scale-up in public investment, continued accommodative monetary policy, and resilient domestic demand. Services activity is expected to remain strong, aided by sustained tourism recovery and expanding digital and financial services, while manufacturing is likely to benefit from stable global demand and supportive policy measures. The outlook remains subject to evolving external conditions, including changes in global trade dynamics, geopolitical developments and weather-related risks.

Middle East and North Africa

Economic activity in the Middle East and North Africa (MENA) region remained relatively resilient during the year, supported by both oil and non-oil sector and continued public investment. In the Gulf Cooperation Council (GCC) countries, non-hydrocarbon sectors, including manufacturing and services, continued to demonstrate resilience and remained key contributors to regional growth. Among oil-importing economies, growth conditions improved, supported by easing import and foreign exchange restrictions, strengthening private demand, and favourable agricultural conditions. In Egypt, growth recovered during the year driven by private demand, alongside a gradual easing in inflation. Inflationary pressures across the region generally remained elevated, reflecting higher food and energy prices amid supply-side disruptions. However, inflation was better contained in GCC economies.

Towards the end of the year, geopolitical developments in West Asia led to volatility in energy prices and supply chains, however underlying demand drivers remained intact across both markets. According to the World Bank, growth in the Middle East and North Africa region is expected to moderate in the near term before improving gradually over the medium term as the geopolitical developments stabilise.

South Africa

South Africas economic activity improved during the year, supported primarily by resilient private consumption, alongside improving electricity availability and a gradual recovery in business confidence. Sectoral gains, including in agriculture and services, also provided some support to economic activity, although overall growth remained soft. Macroeconomic conditions remained broadly stable, underpinned by credible monetary policy and ongoing reform efforts.

According to the International Monetary Fund and the World Bank, growth is expected to improve gradually over the medium term supported by sustained structural reforms particularly in energy and logistics and a progressive recovery in private investment, alongside continued strength in consumption.

FAST MOVING CONSUMER GOODS (FMCG) SECTOR IN INDIA

Indias consumption landscape continues to undergo a structural transformation, supported by rising disposable incomes, progress in tax and regulatory frameworks, rapid digital adoption, and a broadening aspiration base across both urban and rural markets. Private consumption remains a key driver of economic activity, aided by increasing formalisation and improving access to organised retail and digital platforms.

The retail ecosystem is evolving steadily, with a gradual shift in market share from traditional general trade formats towards modern trade, E-Commerce, Quick Commerce, and direct-to-consumer channels. While general trade continues to account for a significant portion of overall retail, emerging channels are gaining traction, reflecting consumer preference for convenience, wider assortment, and faster fulfilment. Digital-first and omnichannel models are increasingly influencing how FMCG products are discovered, purchased, and consumed.

Premiumisation and formalisation trends continue to strengthen across FMCG categories. Branded products are gaining share, supported by rising quality consciousness, increasing health awareness, and greater willingness among consumers to trade up within categories. New-age and digital-native brands are scaling-up rapidly by addressing differentiated consumer needs and niche segments through targeted innovation, data-driven marketing, and direct consumer engagement.

Consumption growth in India is increasingly driven by distinct consumer cohorts. Affluent urban consumers account for a disproportionate share of branded and premium consumption. At the same time, increasing internet and smartphone penetration is helping bridge awareness and access gaps between urban and rural markets, accelerating the adoption of branded FMCG products.

Evolving consumption patterns are being shaped by several structural trends, including premiumisation, health and wellness orientation, greater influence of younger cohorts on household spending, rising participation of women in consumption decisions, increased demand for personalisation, and blurring of traditional category boundaries. Together, these factors are reshaping demand across FMCG categories and influencing innovation, pricing, and go-to-market strategies.

For FMCG companies, these shifts are expected to drive further opportunities across core and emerging categories, while also necessitating greater agility in portfolio management, channel strategy, supply chain, cost structures, and consumer engagement models.

Key Opportunities and Trends:

1. Rural Demand as a Structural Growth Driver

Rural markets continued to play a pivotal role in driving FMCG demand during FY26, supported by improving income levels, increasing digitisation, and enhanced physical distribution reach. Rising internet access and smartphone penetration are enabling greater consumer engagement through digital touchpoints, while ongoing investments in logistics and last-mile connectivity have expanded access to organised FMCG products. With a large proportion of the population residing in rural areas, companies that focus on affordable innovations, appropriate pack-price architecture, and tailored go-to-market strategies are well positioned to capture sustained volume growth over the medium to long term.

2. Gradual Recovery in Urban Consumption

Urban demand, which had seen prolonged softness in prior periods, showed signs of recovery during FY26. While value-seeking behaviour remained evident in essential and entry-level categories, premiumisation trends continued among middle and higher income households. Smaller urban centres contributed meaningfully to the recovery, while larger metropolitan markets experienced a structural shift towards digital-led channels, including E-Commerce and Quick Commerce. These trends underpin the continued relevance of differentiated portfolios across value and premium segments in urban FMCG consumption.

3. Quick Commerce Driving Channel Transformation

Quick Commerce emerged as one of the most significant channel developments during FY26, particularly in dense urban markets. Faster fulfilment, convenience, and increasing assortment depth have accelerated consumer adoption across categories extending beyond staples, including personal care, beverages, and packaged foods. For FMCG companies, this channel is shortening innovation cycles, enabling faster consumer feedback, and supporting the scale-up of niche, premium, and occasion-led offerings. The growing importance of Quick Commerce is reshaping assortment strategies, digital visibility, and channel partnerships across the FMCG value chain.

4. GST Rate Rationalisation Supporting Long-Term Demand

The continued evolution of the GST framework is a positive structural driver for the FMCG sector, supporting the formalisation of the industry. The pass-through of pricing and tax benefits in multiple categories has helped consumer value propositions. Over the medium term,

GST-led efficiencies in taxation and compliance are expected to support demand growth by improving price transparency, enhancing affordability and accelerating the shift towards organised retail and digital channels.

5. Sustainability and Evolving Consumer Preferences

Sustainability considerations are increasingly influencing FMCG consumption in India, driven by rising awareness around health, environmental impact, and product transparency. Consumer preference for natural and responsibly sourced products is gaining prominence across both food and non-food categories, with packaging waste emerging as a key area of focus. While affordability and quality remain paramount, brands that integrate sustainability across product design, packaging, and sourcing, without compromising consumer value, are likely to see increasing relevance. Collaborative approaches across the value chain are also supporting wider adoption of environmentally responsible practices.

6. D2C Brands and Digital-First Disruption Intensify Competition

The proliferation of direct-to-consumer (D2C) and digital-first brands continued to drive competitive intensity across multiple FMCG categories. Enabled by social commerce, data-driven consumer insights, and asset-light operating models, these players have been able to identify emerging trends and scale differentiated propositions with speed, particularly in urban and digitally engaged segments. This has contributed to faster innovation cycles, increased fragmentation in premium and niche segments, and greater pressure on brand relevance and execution excellence. For established FMCG players, these developments underscore the importance of strengthening digital engagement, accelerating innovation, and enhancing responsiveness across channels to remain competitive in a rapidly evolving market landscape.

PERFORMANCE OVERVIEW

In FY26, Consolidated Revenue from Operations stood at J13,611 Crores, delivering a record 26% year-on-year growth, the highest in 14 years. Performance was broad based with the India business reporting underlying volume growth of 8%, marking a 7-year high, while the International business achieved constant currency growth of 20%, also a 14-year high. The business delivered operating profit of J2,328 Crores up 9% over the last year with operating margin at 17.1%, down ~265 bps from the previous year. Recurring consolidated net profit after tax and minority interest was at J1,762 Crores, up 11% over the last year, after adjusting for one-offs in the base year. Reported consolidated net profit after tax and minority interest was at J1,762 Crores, up 8% over the last year.

India Business (76% of Consolidated Revenues)

The India business delivered a turnover of J10,348 Crores in FY26, growing 28% year-on-year with underlying volume growth of 8%, underscoring a strong and resilient performance amidst a challenging operating environment marked by significant inflation. The operating margin of the business was at 17.1%, down ~310 bps compared to the previous year. The moderation in margin was primarily driven by contraction in gross margin due to significantly high inflation in input costs, which was partially mitigated through pricing actions in core portfolios.

Parachute Coconut Oil

Parachute Rigids (blue bottle packs) operated in a challenging input cost environment during FY26, marked by unprecedented hyperinflation in copra. While reported volumes were down by nearly 2% year-on-year, at a transaction level volume growth remained positive after adjusting for ml-age reductions in price-point packs, despite the significant price increases taken during the year. The volume market share of the Parachute Coconut Oil increased to ~57% (MAT Mar26), underscoring the franchises strong equity and consumer trust.

As input costs softened, the brand passed on value through selective pricing actions in Q4. Our efforts to further strengthen brand salience continue with focused communication around the natural goodness and purity of coconut oil through targeted marketing initiatives.

Saffola Edible Oils

Saffola Edible Oils delivered ~13% revenue growth along with a low single digit volume growth, reflecting pricing interventions implemented earlier in response to higher input costs. We continue to focus on growing the brand while maintaining threshold profitability.

Leveraging the brands long-standing equity in heart health, the brand launched a new range of cold pressed oils with both single seed and dual seed variants, designed to combine nutrition, authenticity and everyday usability. This reinforces the brands long-standing advocacy of mindful consumption through the "Less Oil, But the Right Oil" ideology, reiterating the importance of both moderation and quality in everyday diets.

Value-Added Hair Oils

The Value-Added Hair Oils (VAHO) portfolio delivered a strong performance in FY26 with 20% revenue growth, driven by a sharp focus on mid and premium segments, continued innovation, and enhanced direct reach under Project SETU. The GST rate rationalisation during the year provided an additional tailwind, improving affordability and aiding consumer demand.

The franchise further strengthened its leadership, with value market share expanding by ~100 bps on a MAT basis to ~29% (MAT Mar26), while also narrowing the gap between value and volume market share.

Our strategy for the Value-Added Hair Oils franchise continues to be anchored in premiumisation and innovation. Key strategic pillars include:

• Premiumisation through superior propositions, upgrading consumers from base oils to enhanced sensorial experiences and functional benefits.

• Sharper focus on mid and premium segments, renovation of core offerings and sustained innovation.

• Expanding reach through enhanced direct distribution and targeted activation.

Nihar Shanti Badam Amla

Nihar Shanti Badam Amla continued to operate in a challenging competitive environment. Your Company remained focused on strengthening the brands equity and maintaining its healthy profitability. During the year, the franchise was strengthened with the launch of Aloe Vera variant, extending the core amla proposition with added benefits of softness and shine to better align with evolving consumer preferences.

Parachute Advansed Jasmine

Parachute Advansed Jasmine had a strong year, as the brands underlying equity and differentiated proposition continued to support performance. Communication efforts focused towards digital-first content, reinforcing the products Vitamin E led nourishment credentials and healthy shine proposition, aimed at strengthening functional relevance and sustaining consumer engagement.

Hair & Care

Hair & Care delivered robust performance and continued to strengthen its damage repair proposition, supported by sustained brand investments and a focus on driving penetration. Communication during the year remained digital-first, reinforcing the brands core promise of offering a simple and effective solution for repairing hair damage. During the year, Hair & Care Almond was introduced, further strengthening the brands nourishment credentials.

Nihar Naturals

Nihar Naturals performed well, building momentum through ‘Hair Fitness led thematic communication. The initiative reinforces the idea of strong, healthy hair as an expression of confidence and everyday wellness, driving salience and preference across focus markets. Supported by localized execution, influencer amplification and sustained media investments, the initiative aims to strengthen emotional connect with younger consumers while reinforcing the brands core hair fitness proposition.

Premium Personal Care and Digital-First Portfolio

Premium Personal Care portfolio sustained strong momentum with the Digital-First portfolio crossing the J1,100 Crores in annualised revenue run-rate (ARR). Male Grooming, Premium Hair Nourishment and Skin Care businesses also delivered healthy performance, clocking ~J350 Crores in ARR. Expanding our presence in the hair care category, we launched Parachute Advansed Protein Shampoo. Building on the brands strong equity in haircare, the new Protein Shampoo range brings the proven goodness of coconut milk and natural ingredients into the hair cleansing format.

The Digital-First portfolio, comprising Beardo, Just Herbs, and the personal care segment of Plix continued to scale well ahead of expectations.

Beardo sustained its strong growth momentum and has scaled to 5x of FY21 revenues and achieved double-digit EBITDA margin. Over time, the brand has evolved from a beard centric offering into a full stack male grooming brand, with a significant and growing share of revenues coming from non-beard grooming categories. Our foray into the fragrance category is yielding good results and we are witnessing strong consumer traction. The brand continues to grow well on the back of targeted activations and innovations such as the Beardo Blackout powder designed to give men flawless natural looking coverage.

Plix our digital-first, plant-based brand spanning nutraceuticals and personal care, continued its strong growth momentum in FY26. The brands differentiated portfolio across effervescent supplements and personal care continues to resonate strongly with Gen Z and Millennial consumers. The brand has been gaining considerable salience in Personal care, supported by strong traction across skin and hair wellness solutions. Backed by an engaged digital-first community, focus on quality and efficacy, and sustained innovation, Plix remains well positioned to drive accelerated growth over the medium term.

Just Herbs continues to blend traditional Ayurvedic wisdom with modern science, offering beauty solutions that are rooted in authenticity, safety and efficacy. During the year, the brand focused on strengthening its core proposition, enhancing its presence across makeup, skincare, haircare, bath & body and fragrances through continued portfolio enrichment and strong digital engagement.

Foods

The Foods portfolio grew 13% in FY26 crossing the J1,000 Crores revenue milestone.

Saffola Oats continued to retain its leadership position as the #1 brand in the oats category and further strengthened its market share. The brand continued to resonate with health-conscious consumers seeking a balance of nutrition, taste and convenience. The business continued to invest behind distribution expansion, shelf visibility across General Trade and Modern Trade, and accelerated E-Commerce adoption, ensuring availability across key consumption channels.

Saffola Soya Chunks continued to scale-up. The brand is focused on building relevance across core markets, with its differentiated proposition of taste, softness and protein-led nutrition.

Saffola Honey delivered robust growth and continued to strengthen its position by reinforcing its presence across Modern Trade and E-Commerce. The brand remains focused on distribution expansion and building category participation. Saffola Muesli is witnessing healthy traction since its launch last year. During the year, we expanded the offering with a no sugar added variant.

True Elements continued to strengthen its position in the clean nutrition foods space. The Company acquired balance stake in September 2025, making HW Wellness Solutions Private Limited (the entity that owns the brand ‘True Elements) a wholly owned subsidiary. During the year, the brand expanded its portfolio through innovation across protein bars, overnight oats and cup oats, enhancing relevance across breakfast and snacking occasions. Alongside portfolio innovation, True Elements sharpened its focus on offline trade expansion, complementing its strong digital-first presence.

During the year we expanded our foods portfolio through acquisition of 4700BC and Cosmix.

4700BC is a premium, better for you snacking brand operating in the fast-growing Western snacks segment. The brand has an ARR of J140 Crores. The acquisition provides an entry into the large western snacking market, addressing a white space within the Foods portfolio. The brand has built a strong salience with the consumers through its bold flavours, gourmet offerings and a contemporary proposition.

Cosmix is a digital-first brand operating in the functional nutrition and wellness space. With an ARR of ~J100 Crores and high teen EBITDA margin, Cosmix brings healthy unit economics and strengthens our participation in the high growth wellness segment. The brand is recognised for its vegan, gut friendly, plant protein formulations, addressing a large and underserved consumer need. Cosmix holds the #1 bestseller position in the plant protein category across leading E-Commerce and Quick Commerce platforms, supported by strong repeat rates, customer lifetime value and brand recall.

Sales and Distribution in India

During the year, our go-to-market (GTM) efforts progressed steadily under the Sales 3.0 framework, resulting in improved traction in traditional trade following sustained investments over the last two years. Continued expansion in coverage, alongside targeted actions to strengthen high-throughput channels, enhanced execution quality, productivity, and responsiveness to market dynamics. Our distribution network now services nearly 5.8 million outlets across over 60,000 villages and virtually all towns with populations above 5,000, reinforcing our leadership in reach and execution.

Building on Project SETU the next phase will focus on increased automation and AI-led resource optimisation to simplify processes, improve execution quality, and reduce leakages. Advanced analytics and system-led decision tools will support sharper assortment, product mix, and bill-value optimisation at scale. Expansion of direct reach across urban and rural markets remains a strategic priority, supported by deeper rural penetration, improved in-store assortment, and accelerated scale-up of new launches and Foods portfolio across channels.

Modern Trade delivered healthy growth during the year, driven by disciplined in-store execution, improved availability and visibility, and effective promotion compliance, leading to stronger conversion and offtake across key accounts.

E-commerce delivered robust double-digit growth during the year, anchored by the rapid scale-up of Quick Commerce as a key channel of choice for urban consumers. Our salience in Quick Commerce in the India business has strengthened to ~5%, reflecting improved visibility, assortment relevance and execution across leading platforms. Consequently, the combined contribution of digital channels, including E-commerce and D2C, now exceeds 20% of the India business.

We are continuing to strengthen our partnerships with key platforms, with a clear focus on improving execution across availability, search visibility and media activation in the Quick Commerce channel. By using data and advanced analytics, we are refining our assortment, pack formats and in-app visibility to better match evolving consumption occasions, helping drive stronger conversion and deeper consumer engagement.

International Business (24% of Consolidated Revenues)

The International business reported a turnover of J3,263 Crores, registering robust 20% growth in both INR and constant currency terms, with broad based performance across all geographies. The operating margin of the International business was 25.9%, down ~200 bps compared to the previous year, primarily on account of significant inflation in copra prices.

Bangladesh

Bangladesh continued to demonstrate strong resilience, despite inflationary input cost pressures led by elevated copra prices. The business delivered constant currency growth of 25%, supported by strong brand equity, a well-entrenched distribution network and continued portfolio diversification. The focus remained on strengthening the core portfolio while accelerating scale-up of newer categories such as Shampoos, Skin Care and Baby Care. Building on its strong brand equity, deep distribution reach and execution capabilities, the business remains well positioned to continue to deliver strong performance.

Vietnam

Vietnam reported constant currency growth of 12%. Performance improved on the back of targeted GTM interventions, with a sharper focus on execution, particularly across E-Commerce and modern digital channels. The business continued to see strong traction especially in the female personal care segment with Purit? de Provence and ?liv strengthening their presence in the category.

During the year, the Company expanded its portfolio in Vietnam through strategic investment to acquire a majority stake in Skinetiq Joint Stock Company, which owns the digital-first, science-backed skincare brand, Candid.

Middle East and North Africa (MENA)

MENA region continued to deliver strong performance with 18% constant currency growth. The geopolitical developments and the escalation of conflict in West Asia towards the end of FY26 led to transient supply chain constraints across select markets in the region. Despite these near-term headwinds, the underlying growth drivers remain intact and our execution capabilities will hold us in good stead for a sustained growth momentum.

South Africa

South Africa business delivered constant currency growth of 7%, with strong performance particularly during the second half of the year driven by robust execution and enhanced product distribution across channels.

New Country Development & Exports

New Country Development and Exports segment continued to deliver healthy constant currency growth of 39%, supported by steady progress across key markets. The Company is confident of the long-term potential of this portfolio, as it continues to scale markets, broadening its international footprint and building the foundation for future growth.

OVERVIEW OF CONSOLIDATED RESULTS OF OPERATIONS

Total Income

Our total income consists of the following:

1. Revenue from operations comprises sales from ‘Consumer Products, including coconut oil, premium refined edible oils, value-added hair oils, anti-lice treatments, fabric care, functional and other processed foods, hair creams and gels, hair serums, shampoos, shower gels, hair relaxers and straighteners, deodorants and other similar consumer products, by-products, scrap sales and certain other operating income.

2. Other income primarily includes profits on sale of investments, interest and miscellaneous income.

The following table states the details of income from sales and services, and Other income for FY25 and FY26:

Particulars (INR Crores)	FY25	FY26
Revenue from operations	10,831	13,611
Other income	208	204
Total Income	11,039	13,815

Expenses

The following table sets the key profit and loss account line items for FY25 and FY26:

Consolidated P&L (INR Crores)	FY25	% of Revenue	FY26	% of Revenue
Revenue from operations	10,831		13,611
Cost of materials	5,388	49.7%	7,559	55.5%
Employee Cost	831	7.7%	916	6.7%
Advertisement and Sales Promotion	1,128	10.4%	1,300	9.6%
Other Expenditure	1,345	12.4%	1,508	11.1%
EBITDA	2,139	19.7%	2,328	17.1%
Depreciation and Amortization	178	1.6%	202	1.5%
Finance Charges	53	0.5%	53	0.4%
Other Income	208	1.9%	204	1.5%
Profit before tax	2,116	19.5%	2,277	16.7%
Tax	458	4.2%	464	3.4%
Reported Profit after tax and before MI	1,658	15.3%	1,813	13.3%
Reported Profit after tax and MI	1,629	15.0%	1,762	12.9%
Recurring Profit after tax and MI*	1,593	14.7%	1,762	12.9%

*For FY25, Recurring profit after tax (after minority interests) excludes one-off gains on the sale of fixed assets and favourable settlement of a past litigative claim (both classified under ‘Other Income), amounting to ~J42 cr. pre-tax.

Cost of Materials

Cost of materials comprises consumption of raw material, packing material and semi-finished goods, purchase of finished goods for re-sale and increase or decrease in the stocks of finished and work-in-progress goods and by-products. In FY26, prices of domestic copra were up by 57% YoY, rice bran oil increased by 16% YoY – on an already elevated price levels of FY25. LLP was up 2% YoY and HDPE was up 3% YoY.

Direct Tax

The effective tax rate (ETR) was 20.4% in FY26.

Capital Utilisation

Given below is a snapshot of various capital efficiency ratios for Marico:

Particulars	FY26	FY25
Return on Capital Employed (ROCE)	49.1	47.2
Return on Net Worth (RONW)	43.0	41.7
Debt Equity Ratio	0.08	0.09
Current Ratio*	1.95	2.05
Interest Coverage Ratio	41.0	37.0
Working Capital Ratios (Group)
Debtor Turnover (Days)	35	40
Inventory Turnover (Days)	38	44
Net Working Capital (Days)*	27	35

*In FY26, the Company revalued an obligation to acquire the remaining stake from a prior acquisition and reclassified from Non-Current Liabilities to Current Liabilities in line with the accounting policy. The Current Ratio and Net Working Capital (Days) stated above is adjusted for the liability. Without such adjustment, the Current Ratio stands at 1.43 and the Net Working Capital (Days) stands at 12.

The Company has maintained healthy working capital and return ratios through the year.

Return on Net Worth (RONW) improved to 43.0%, owing to healthy growth in net profits.

Shareholder Value

Your Companys wealth distribution philosophy aims at sharing its prosperity with its shareholders, through a formal earmarking/ disbursement of profits to its shareholders, while retaining sufficient profits in the business for various purposes. The dividend pay-out ratio in FY26 was ~29% of the recurring consolidated net profit after tax as compared to 85% in the previous year, owing to deployment of cash towards acquisitions of businesses during the year in line with the strategic intent of diversification and premiumization of the portfolio. Your Company is committed to maintaining a strong dividend pay-out, in accordance with its Dividend Distribution Policy.

Outlook

In the near term, we remain focused on consistently delivering top-quartile outcomes across key performance metrics. We expect to sustain high single-digit volume growth in the India business in FY27. The International business is expected to maintain strong momentum with mid-teen constant currency growth, driven by broad-based performance across markets. At a consolidated level, we aim to deliver double-digit revenue growth to cross K15,000 Cr. in FY27. We aspire to deliver high-teen EBITDA growth, subject to current macros.

We have remained resilient amidst ongoing geopolitical developments in the Middle East and have been able to effectively contain the near-term impact through strategic positioning across raw materials, packaging materials and finished goods. We have maintained strong supply chain assurance and do not foresee any material disruption. While crude-linked input costs remain a monitorable risk, any sustained increase will be addressed through calibrated pricing actions. At the same time, we are witnessing significant tailwinds in copra, with prices correcting ~35% from peak levels, which will help alleviate potential crude-related pressures. Alongside this, the pricing power of our market-leading franchises, continued cost management initiatives and strengthening supply chain capabilities provide confidence in sustaining margin resilience.

We expect our core categories to chart a growth trajectory in line with medium-term aspirations, as we continue to draw confidence from healthy offtakes, penetration and market share gains across the key franchises. This will be further aided by ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in our direct reach footprint under Project SETU. We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organized retail and E-Commerce channels. Therefore, we expect to deliver consistent and competitive growth in the medium term by executing a more focused and channel-specific portfolio and SKU strategy. Sustained investment towards the accelerated scale-up of our Foods and Premium Personal Care portfolios (incl. Digital-first businesses) has continued to drive a structural shift in the revenue and profitability construct of the India business. We remain committed to aggressively diversifying through these portfolios in line with our medium-term strategic priorities. The India revenue share of the Foods and Premium Personal Care portfolios (incl. Digital-first) stood at ~23% in FY26. We expect it to expand to ~27% in FY27 and ~33% by FY30. The rapid scale-up of these portfolios has been accompanied by continued improvement in their profitability, reinforcing the profitable and sustainable nature of the diversification strategy, with their share of India profits* moving to ~5x of FY20 levels in FY26 and expected to rise to ~10x of FY20 levels by FY30. In Digital-first brands, the focus remains on driving profitable growth, as we expect to reach double-digit EBITDA margins by end of FY27 and expand to teens by FY30. The combined benefits of premiumisation, scale and operating synergies are expected to drive a visible transformation in the margin profile of the business.

The International business continues to demonstrate resilience, with premiumization and diversification underway, coupled with strong profitability. As a result of the diversification, the revenue share of Bangladesh in the overall International business has moderated from ~50% in FY20 to ~45% in FY26 and is expected to moderate further to ~35% by FY30, thereby instilling long-term resilience of the portfolio. We have made significant strides in premiumising our international portfolios by driving innovation and expanding into beauty and personal care categories, including shampoos, skincare, hair styling, and baby care, among others. Consequently, this has driven the revenue share of premium categories in the International business from ~20% in FY20 to ~30% in FY26, and we expect this to expand to ~40% by FY30.

We will also continue to scout for inorganic growth opportunities that offer meaningful potential to consolidate our competitive position in existing categories, expand the total addressable market in existing geographies or access markets of interest, thereby adding visible levers to drive long term value creation.

In the medium term, we are positioned to deliver top quartile performance, underpinned by a robust set of strategic enablers. These include expansion of the total addressable market, digital brand building, scale-up of premium categories across markets, investments in analytics and AI capabilities, and margin upside driven by operational leverage. At a consolidated level, we are poised to deliver double-digit revenue CAGR, driven by top-quartile volume growth and teens CCG in our International business, reinforcing our ambition to deliver

L20,000+ Crores in revenues by FY30, alongside our aspiration to achieve a mid-teen EBITDA CAGR.

With strong fundamentals, disciplined execution, and a clear diversification agenda, we are building a business that is not only resilient to external shocks but also positioned to capture emerging high growth opportunities across India and international markets. Therefore, we aim to deliver consistent, sustainable and profitable growth, and to translate this performance into long-term value creation for all stakeholders.

*Profits refer to Net Contribution (NC) calculated as Net Revenues less all variable costs and marketing expenses. Also, equivalent to CM3.

HUMAN RESOURCES

We empower our employees to unleash their full potential, fostering collaboration and inclusive growth, guided by the distinctive ‘Marico Way—a fusion of purpose, ethos, and values. Our commitment to cultivating a people-first culture, championing inclusion and diversity, streamlining digital processes and futureproofing our organization remains unwavering. Throughout the past year, we have diligently pursued initiatives outlined in the chapter titled ‘People, fostering a culture where talent thrives and contributes to our growth journey.

INFORMATION TECHNOLOGY & DIGITAL

Our strategic investments in digital and analytics have fortified our operational framework, driven efficiencies and enhanced the overall customer experience. We have been tapping the potential of social media platforms, E-Commerce channels and targeted digital marketing strategies to enhance customer engagement and foster brand loyalty across our diverse portfolio. By harnessing the power of analytics, we garner valuable consumer insights that fuel product innovation and elevate consumer satisfaction. Further details of the latest initiatives have been provided in the chapter titled ‘Consumers.

RISK MANAGEMENT

Risk management is an essential practice for organizations to identify, assess and mitigate potential risks that can impact the operations, objectives of a firm. We have a comprehensive risk management framework where we have integrated the risk management, both through external environment and internal processes, with our strategy formulation and decision-making process. Details of the risks envisaged along with our strategic response to the same is presented in the chapter titled

‘Risk Management.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

We have a well-established and comprehensive internal control structure across the value chain to ensure that:

Our assets are safeguarded and protected against loss from unauthorized use or disposition,

Transactions are authorized, recorded and reported correctly and operations are conducted in an efficient and cost-effective manner.

The key constituents of the internal control system are:

Establishment and periodic review of business plans

Identification of key risks and opportunities and regular reviews by top management and the Board of Directors

Policies on operational and strategic risk management

Clear and well-defined organization structure and limits of financial authority

Continuous identification of areas requiring strengthening of internal controls

Standard operating procedures to ensure effectiveness of business processes

Systems of monitoring compliance with statutory regulations

Well-defined principles and procedures for evaluation of new business proposals/capital expenditure

Robust management information system

Comprehensive Information Security Policies and guidelines

Comprehensive internal audit and review system

Well-defined Internal Financials Controls framework

An effective whistle-blowing mechanism

Training/awareness sessions on policies and code of conduct compliance

Robust Crisis Management Framework

Enterprise Risk Management Framework

The internal control system is regularly tested and reviewed by Independent Internal Auditor. The independent internal auditor is appointed by the Audit Committee of the Board. All possible measures are taken by the Audit Committee to ensure the objectivity and independence of the Internal Auditor, including quarterly one on one discussions. The Company also has a management audit team which carries out internal control reviews and follow-up audits. The team is also responsible for monitoring implementation of action points arising out of internal audits. There is a robust process to drive adjacencies arising from audit to ensure proactive control across Marico group. The internal auditors and management audit team, as part of their audit process, carry out a systems and process audit to ensure that the ERP and other IT systems used for transaction processing have adequate internal controls embedded to ensure preventive and detective controls. The audit process includes validation of transactions on sample basis to check if the operations of the Company are conducted in compliance to internal policies and ethical standards defined by the Company. The audit report is reviewed by the management for corrective actions and the same is also presented to and reviewed by the Audit Committee of the Board. Internal audits and management reviews are undertaken on a continuous basis, covering various areas across the value chain like procurement, manufacturing, information technology, supply chain, sales, marketing, compliance, and finance with the intent to cover all material business processes and locations under internal audit at least once in every 3-4 years. The internal audit programme is reviewed by the Audit Committee at the beginning of the year to ensure that the coverage of the areas is adequate. Reports of the internal auditors are regularly reviewed by the management and corrective action is initiated to strengthen the controls and enhance the effectiveness of the existing systems. Summaries of the reports and actions taken on audit findings are presented to the Audit Committee of the Board. We have also deployed audit analytics in the domains of sales, procurement, manufacturing, supply chain and employee spends. It helps in continuous control monitoring of control effectiveness and areas where actions are required. The Internal Controls team reviews output of this tool and derives corrective action on timely basis. In order to strengthen control environment, audit analytics will be deployed in other functions of Maricos India operations as well as key international geographies. Deloitte Touche Tohmatsu India, LLP has carried out our internal audit in the year under review. The work of internal auditors is coordinated by an internal team at our end. This combination of our internal team and expertise of a professional firm ensure independence as well as effective value addition and protection.

Internal Financial Controls (IFC)

As per section 134(5)(e) of Companies Act 2013, IFC means the policies and procedures adopted by the Company for ensuring:

– Accuracy and completeness of accounting records

– Orderly and efficient conduct of business, including adherence to policies

– Safeguarding of its assets

– Prevention and detection of frauds

We have implemented a robust internal financial controls framework within the Company. The Internal Financial Controls have been documented and embedded in the business processes. Design and operating effectiveness of controls are tested by the management annually and later audited by statutory auditors. Statutory auditors have issued an unqualified report after checking the effectiveness of these controls.

The management believes that strengthening IFC is a continuous process and therefore it will continue its efforts to make the controls smarter with focus on preventive and automated controls as opposed to mitigating manual controls. The Company has robust ERP and other supplementary IT systems which are integral part of internal control framework. The Company continues to constantly leverage technology in enhancing the internal controls. On a voluntary basis, our material subsidiary, Marico Bangladesh Limited has also adopted this framework. Over time, we will extend this framework to our other overseas subsidiaries.