Marico Q2 revenue rises 31% as it targets 1.5 million direct outlets by FY27
Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year-on-year, while net profit slipped 0.7% to Rs 420 crore amid higher copra costs. The FMCG maker plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27, alongside food and premium personal-care growth.
What happened
Marico’s Q2 revenue rose 31% despite a marginal profit decline and margin pressure from copra costs. India revenue grew nearly 35%; the FMCG maker plans food
Key facts
- Q2 net profit Rs 420 crore, down 0.7% YoY
- Revenue Rs 3,482 crore, up 30.7% YoY
- India revenue Rs 2,667 crore, up nearly 35% YoY
- India volume growth 7%
- EBITDA Rs 560 crore, up 7.3% YoY
- EBITDA margin 16.1%, versus 19.6% a year earlier
- Gross margin contracted 810 bps; EBITDA margin contracted 350 bps
- Advertising and promotion spending up 19% YoY
- Foods grew 12% YoY and crossed Rs 1,100 crore annualised revenue run rate
- Digital-first portfolio crossed Rs 1,000 crore annualised revenue
- International revenue Rs 815 crore, up 19% YoY
- Direct distribution planned to expand from 1 million outlets in FY24 to 1.5 million by FY27
Why this matters
Marico’s distribution expansion and category focus suggest potential partnership or acquisition interest in scalable food and premium personal-care brands that can leverage its growing direct reach.
What to watch
- Copra and edible-oil price trend, procurement commentary and the timing of any retail price hikes.
- Volume growth versus value growth in Parachute, Saffola and value-added hair-oil categories.
- Quarterly direct-outlet count and pace toward the 1.5 million FY27 target.
- Gross-margin, EBITDA-margin and advertising-spend trajectory after the revenue surge.
- Growth and profitability disclosure for foods, premium personal care and digital-first portfolios.
- Competitive pricing and promotions from Dabur, HUL, Emami and regional FMCG brands.
- Accelerate direct-distribution additions in underpenetrated urban clusters and high-growth rural markets.
- Take selective price increases, pack-size changes and promotional adjustments to offset copra-cost inflation.
- Prioritize outlet-level assortment expansion for foods, premium hair care, male grooming and digital-first brands.
- Use distributor and retailer data to improve replenishment, reduce stock-outs and target high-potential outlets.
- Maintain advertising and brand investment while tightening discretionary costs to defend operating margins.