• Growth aspiration: Management clarified it had not issued formal guidance: high teen growth was its aspiration for FY27, and it would aspire to double-digit growth in H2; it would be disappointed if growth fell below double digits. H1 demand had remained resilient despite inflation.
• Pricing and margins: A 5% price increase was rolled out in October, split nearly half-and-half between frontal pricing and ml-age reductions, as commodity costs are expected to remain high. With lean inventories, cost certainty is limited; management expects margins to remain range-bound and is focused on absolute EBITDA growth.
• EBITDA and spending: The aspiration is to maintain low to mid-20s EBITDA margins. Advertising and sales promotion spend was 12.5% of top line this quarter, with around 14% expected on a trend basis and possible ramp-up when new product innovations reach the market.
• Growth portfolio: Coconut is a major focus; pricing is now at a 10 to 12% discount to the market leader, which management considers optimal for profitable growth. For Banjara’s, the company is testing launches in select markets before scaling successful initiatives, while smaller brands are being revamped.