Marico Q2 revenue jumped 31%, resurfacing its September target of 1.5 million direct outlets by FY27
Marico's Q2 results, reported in a September 2025 filing, showed revenue of Rs 3,482 crore, up 30.7% year-on-year, while net profit slipped 0.7% to Rs 420 crore as copra costs and brand investment compressed margins. India revenue rose nearly 35%, and the company reiterated plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.
What happened
Marico reported Q2 revenue growth of 30.7% but a 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
- 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
- Foods growth: 12% YoY; over Rs 1,100 crore annualised revenue run rate
- Digital-first portfolio: over Rs 1,000 crore
- International revenue: Rs 815 crore, up 19% YoY
- Direct distribution target: 1 million outlets in FY24 to 1.5 million by FY27
Why this matters
Marico’s push to add 500,000 direct outlets by FY27 increases the strategic value of regional distribution partners, route-to-market capabilities and brands that can leverage its expanding India network.
What to watch
- Copra price trajectory and management commentary on gross-margin pressure.
- India volume growth versus price-led growth in upcoming quarterly disclosures.
- Direct-distribution outlet additions, active-outlet productivity and rural penetration metrics.
- Advertising and promotion spending as a percentage of sales.
- Any price hikes, grammage changes or downtrading in Parachute and other core franchises.
- EBITDA margin recovery, inventory movement and working-capital impact from distribution expansion.
- Prioritize direct outlet additions in high-repeat, high-margin personal-care and foods categories rather than pursuing outlet count alone.
- Use granular distributor and outlet data to tailor assortments, replenishment and promotional spending by region.
- Deploy calibrated price increases, pack-size architecture and premium variants to protect gross margin without broad-based demand disruption.
- Increase sourcing hedges, supplier diversification and inventory planning for copra exposure.
- Shift brand investment toward measurable conversion in newly activated outlets and digital commerce channels.