Marico Q2 revenue rises 31% as it targets 1.5m direct outlets by FY27

Marico’s Q2 revenue reached Rs 3,482 crore, led by nearly 35% domestic growth, while net profit slipped 0.7% as copra costs and brand spending compressed margins. The FMCG major plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledSun, 13 Sept, 2026, 01:19 IST·First seen Sun, 13 Sept, 2026, 01:18 IST·Source Financial Express (via Wayback)

What happened

Marico reported Q2 revenue growth of 30.7% but a marginal profit decline amid copra costs and brand investment. India revenue rose nearly 35%; it plans to

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
  • Gross margin contracted 810 bps; EBITDA margin contracted 350 bps
  • Advertising and promotion spending up 19% YoY
  • India volume growth 7%; domestic revenue nearly Rs 2,667 crore, up nearly 35% YoY
  • India accounts for about 70-75% of revenue
  • Foods grew 12% and exceeded Rs 1,100 crore annualised run rate
  • Digital-first portfolio exceeded Rs 1,000 crore annualised run rate
  • 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

The planned expansion from 1 million to 1.5 million direct outlets creates a larger platform for portfolio penetration, premium launches and targeted regional growth, despite current profitability pressure.

What to watch

  • Copra-price trajectory and management commentary on gross-margin recovery.
  • Domestic volume growth versus reported value growth in the next two quarters.
  • Progress toward direct-outlet additions and sales productivity per newly added outlet.
  • Advertising-and-promotion spending as a percentage of sales.
  • Pricing actions, rural demand trends and competitive activity in coconut oil, hair oils and foods.
  • Growth and profitability contribution from foods, premium personal care and digital-first brands.
  • Accelerate direct-distribution expansion in rural, tier-3 and tier-4 markets, prioritizing outlets with high Parachute, Saffola and value-added hair-oil potential.
  • Take calibrated price increases, pack-size adjustments and promotion changes if copra costs remain elevated.
  • Increase advertising and in-store execution to defend share while competitors may also respond to stronger domestic demand.
  • Use premiumization and food-category launches to improve portfolio mix and lower reliance on core coconut-oil margins.
  • Seek procurement, hedging and formulation efficiencies to limit commodity-cost pass-through.