Health foods lift Marico and Zydus Wellness as nutrition brands outgrow the core

The September quarter results of two consumer companies show nutrition and health foods turning into real growth engines in India's FMCG sector.

Marico reported Q2 FY27 revenue of Rs 3,897 crore, up 13 per cent, with profit after tax rising 31 per cent to Rs 550 crore and EBITDA margin expanding 200 basis points to 18.2 per cent. Its foods business grew 45 per cent in value, helped by organic growth and recent acquisitions, and now runs at an annualised revenue of more than Rs 1,500 crore. Saffola oats holds a 42 per cent value share, the True Elements millet range has joined the portfolio, and digital-first PLIX is scaling quickly in health supplements and functional foods.

Marico also raised its full-year outlook, now guiding to mid-twenties EBITDA growth, up from about 20 per cent, and revenue comfortably above Rs 15,000 crore. One sign of where the market is heading: Saffola edible oils saw a high single-digit volume decline but 6 per cent value growth as the company shifts buyers to premium cold-pressed variants.

Zydus Wellness posted consolidated net sales of Rs 1,122.7 crore for the quarter, up 74.6 per cent, with EBITDA rising 271.7 per cent to Rs 85.5 crore. Sugar Free grew at double digits and entered the monk fruit sweetener category with a no-erythritol formulation. Complan also grew at double digits, helped by a new in-house medical marketing team for Complan NutriGro Kids. RiteBite Max Protein expanded into crunchy cookies, and WeightWorld added three supplements.

The common thread is that sugar reduction, protein and science-backed claims are now driving growth. As FSSAI tightens labelling and claims rules, the brands that can back their health claims with evidence are the ones gaining shelf space and share.