Marico cuts low-margin Saffola oil supply as it prioritises profitable growth
After Q1 FY27 revenue rose 23% to ₹3,957 crore, Marico is protecting margins in commoditised categories, leaning into premium products and tightening low-margin distribution. It is also targeting 20%-25% growth at digital brands while increasing investment in general trade.
Marico is prioritising profitability over volume in commoditised segments, cutting lower-margin Saffola oil supplies and focusing on premiumisation. It is also slowing acquisitions, improving digital-brand margins and investing in general trade despite rapid quick-commerce growth.
Why this matters
The move follows Marico's Q1 report of 22.8% revenue growth and Parachute price cuts funded by lower copra costs, while the company also flagged a quick-commerce surge as modern trade and marketplace growth moderated.
Retail-company signals are accelerating, up 204829% QoQ.