Marico Q2 revenue climbs 31% as copra costs squeeze margins

Marico posted Q2 revenue of Rs 3,482 crore, up 30.7% YoY, while net profit slipped 0.7% to Rs 420 crore. India revenue grew nearly 35%, but EBITDA margin fell to 16.1% from 19.6%. The FMCG major plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledTue, 28 Jul, 2026, 21:48 IST·First seen Tue, 28 Jul, 2026, 21:48 IST·Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 31% but marginal profit decline as copra costs and brand investments compressed margins. India revenue rose nearly 35%,

Key facts

  • Q2 net profit: Rs 420 crore, down 0.7% YoY
  • Q2 revenue: Rs 3,482 crore, up 30.7% YoY
  • Q2 EBITDA: Rs 560 crore, up 7.3% YoY
  • EBITDA margin: 16.1%, versus 19.6% a year earlier
  • India volume growth: 7%
  • India revenue: Rs 2,667 crore, up nearly 35% YoY
  • India share of revenue: 70-75%
  • Foods growth: 12% YoY; Rs 1,100 crore annualised run rate
  • Digital-first portfolio: over Rs 1,000 crore
  • International revenue: Rs 815 crore, up 19% YoY
  • Direct distribution: 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push from 1 million to 1.5 million directly served outlets strengthens its route-to-market moat and could raise the appeal of bolt-on brands with underpenetrated distribution.

What to watch

  • Monthly copra and edible-oil price trends, especially whether inflation begins to ease after the peak procurement season.
  • The extent and consumer response to Marico price hikes or pack-size reductions in Parachute and Saffola.
  • India volume growth versus value growth; a widening gap would indicate increasingly price-led growth.
  • EBITDA margin trajectory over the next two quarters and management commentary on the timing of margin normalization.
  • Rural demand, general trade replenishment and direct-distribution outlet additions versus the FY27 expansion target.
  • Growth and profitability contribution from foods, premium personal care and digital-first brands.
  • Take further selective price hikes and reduce grammage in key Parachute and Saffola SKUs to protect gross margin.
  • Prioritize premium, food, digital-first and value-added personal-care products to improve mix versus commodity-linked coconut oil.
  • Accelerate direct-distribution expansion toward 1.5 million outlets, with greater focus on rural availability and outlet productivity.
  • Use promotions selectively to defend volumes while avoiding broad discounting that would deepen margin pressure.
  • Increase hedging, procurement discipline and alternate sourcing efforts for copra and edible-oil exposure.