Marico Q2 revenue rise of 31% resurfaces; profit slipped as margins narrowed
Resurfacing a report from mid-November 2025: Marico posted Q2 revenue of Rs 3,482 crore, led by 7% India volume growth and nearly 35% domestic revenue growth. Higher copra costs and brand investments cut EBITDA margin to 16.1%. The FMCG major was targeting direct reach of 1.5 million outlets by FY27.
What happened
Marico reported Q2 revenue growth of 30.7% to Rs 3,482 crore but a 0.7% profit decline as copra costs and brand investments compressed margins. It plans foods
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% YoY
- India volume growth: 7%
- Domestic revenue: Rs 2,667 crore, up nearly 35% YoY
- Foods annualised revenue run rate: over Rs 1,100 crore
- Digital-first portfolio annualised revenue run rate: over Rs 1,000 crore
- Overseas revenue: Rs 815 crore, up 19% YoY
- Direct reach target: 1 million outlets in FY24 to 1.5 million by FY27
Why this matters
Marico’s accelerating domestic growth and expanded direct-distribution ambition strengthen its FMCG platform, potentially increasing the strategic appeal of bolt-on brands that can leverage its deeper outlet reach.
What to watch
- Copra price trend and management commentary on gross-margin outlook.
- India volume growth after any pricing or pack-size actions.
- Direct-reach additions, sales per directly served outlet and rural distribution metrics.
- EBITDA margin trajectory versus the reported 16.1%.
- Advertising and promotion spend as a share of sales.
- Market-share movement in core coconut-oil and foods categories.
- Evidence that domestic revenue growth remains above volume growth without materially weakening demand.
- Prioritize direct-reach expansion in high-potential rural and semi-urban clusters, with outlet productivity targets rather than pure outlet additions.
- Use selective price-pack architecture, premiumization and portfolio mix to offset copra inflation while protecting entry-price affordability.
- Increase in-store execution, distributor analytics and digital ordering tools to convert direct reach into repeat sales and lower servicing costs.
- Stage brand investment behind categories and geographies showing measurable volume and market-share gains.
- Tighten procurement, inventory planning and hedging discipline around copra exposure.