Marico plans to step up acquisitions in FY27 as digital brands cross ₹1,100 crore ARR

Marico will continue scouting for acquisitions that strengthen its position in existing categories, expand its addressable market or provide entry into new geographies, even as the FMCG maker shifts its immediate focus towards scaling recently acquired digital-first brands profitably in FY27.

The acquisition-led strategy forms a key pillar of Managing Director & CEO Saugata Gupta’s plan to transform Marico into a more diversified consumer goods company spanning nutrition, healthy foods, premium personal care and skincare, while reducing its dependence on traditional coconut and edible oils.

“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,” the company said in its FY26 annual report, adding that such investments would provide “visible levers to drive long-term value creation”. The Board has also retained evaluation of inorganic growth opportunities among its strategic priorities.

Chairman Harsh Mariwala said Marico enters FY27 with confidence despite macroeconomic and geopolitical uncertainties, supported by a resilient business model, strong brands and disciplined value creation.

“Marico is now building the next decade’s growth engines: digital-first, premium and globally scalable brands,” Mariwala said. Gupta described the transformation as deliberate and measured, with priorities centred on strengthening core franchises, expanding into adjacencies, scaling digital businesses profitably and diversifying the international business.

“Our future-focused digital-first portfolio is scaling up fast with a clear emphasis on profitable growth,” Gupta said, citing strategic investments in Cosmix, 4700BC and Vietnam’s Candid skincare brand.

According to Dolat Capital’s analysis of the annual report, Marico’s digital-first portfolio comprising Beardo, Just Herbs and Plix has crossed an annualised revenue run rate (ARR) of more than ₹1,100 crore. The brokerage estimates Beardo has expanded to five times its FY21 revenue while maintaining a double-digit EBITDA margin, while Cosmix entered the portfolio with a high-teens EBITDA margin and around ₹100 crore ARR. 4700BC was acquired at an estimated ARR of about ₹140 crore.

Dolat Capital also expects Foods and Premium Personal Care, including digital-first brands, to increase their share of Marico’s India business from about 23% in FY26 to 27% in FY27, before reaching roughly 33% by FY30.

The figures suggest Marico is increasingly acquiring businesses that have already demonstrated product-market fit and, in some cases, profitability. The challenge in FY27 will therefore shift from buying brands to scaling them through Marico’s manufacturing, distribution and brand-building capabilities without compromising margins.

The annual report indicates Marico retains room for further acquisitions. Current investments rose to ₹1,948 crore from ₹1,375 crore, up 42%, while operating cash flow increased to ₹1,492 crore from ₹1,110 crore, up 34%. Cash and bank balances declined to ₹493 crore from ₹777 crore following acquisition-led investments, while total debt remained broadly stable at ₹557 crore versus ₹554 crore a year earlier.

Marico has not disclosed a dedicated acquisition war chest, but its balance sheet and cash generation leave it with the capacity to evaluate additional opportunities if strategically attractive assets emerge.

For investors, FY27 may prove less about whether Marico announces another acquisition and more about whether the businesses it has already bought can deliver the growth, margins and returns needed to make acquisitions a repeatable pillar of the company’s long-term growth strategy.