Marico Q2 revenue rises 31% as India sales jump; profit slips 0.7%

Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year-on-year, while net profit fell 0.7% to Rs 420 crore as copra costs and brand investments compressed margins. It aims to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledSat, 12 Sept, 2026, 05:35 IST·First seen Sat, 12 Sept, 2026, 05:34 IST·Source Financial Express · BrandWagon

What happened

Marico reported marginally lower Q2 profit despite 31% revenue growth, 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 volumes: up 7% YoY
  • India revenue: Rs 2,667 crore, up nearly 35% YoY
  • India share of revenue: 70-75%
  • Foods annualised revenue run rate: over Rs 1,100 crore
  • Digital-first portfolio revenue: over Rs 1,000 crore
  • Direct distribution target: 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s plan to expand direct distribution from 1 million to 1.5 million outlets by FY27 strengthens its route-to-market moat and could increase the strategic value of regional brands or distribution-led partnerships.

What to watch

  • Sequential movement in copra prices and management commentary on gross-margin recovery.
  • India volume growth versus value growth, especially in Parachute and rural-led categories.
  • Advertising and sales-promotion expense as a percentage of revenue.
  • Progress toward 1.5 million directly served outlets and resulting rural distribution/market-share gains.
  • Pricing actions by major FMCG peers and evidence of consumer downtrading.
  • Growth and profitability contribution from foods, premium personal care and digital-first portfolios.
  • Take calibrated price hikes and reduce promotional intensity in coconut-oil-linked portfolios if copra inflation persists.
  • Accelerate direct distribution expansion in underpenetrated rural and semi-urban outlets, using the larger network to improve availability and retailer data capture.
  • Shift advertising and innovation spend toward premium personal care, foods and digital-first brands with higher margin and lower dependence on copra.
  • Use pack-price architecture, smaller packs and selective grammage actions to defend household penetration without fully absorbing input inflation.
  • Pursue supply-chain efficiencies and longer-term copra sourcing arrangements to reduce commodity-cost volatility.