Marico Q2 revenue rose 31% as profit slipped and margins compressed (resurfacing Nov 2025 report)

Resurfacing a November 2025 disclosure: 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. Higher copra costs and brand investment pulled EBITDA margin down to 16.1% from 19.6%. The FMCG major plans to expand direct distribution to 1.5 million outlets by FY27.

— FiledTue, 8 Sept, 2026, 23:06 IST·First seen Tue, 8 Sept, 2026, 23:04 IST·Source Financial Express · BrandWagon

What happened

Marico’s Q2 profit slipped 0.7% to Rs 420 crore despite 31% revenue growth, as copra costs and brand investment compressed margins. It plans food and premium

Key facts

  • Q2 net profit: Rs 420 crore, down 0.7% YoY
  • 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 annualised revenue run rate: over Rs 1,100 crore
  • Digital-first portfolio revenue: over Rs 1,000 crore
  • International revenue: Rs 815 crore, up 19% YoY
  • Direct distribution outlets planned: 1 million in FY24 to 1.5 million by FY27

Why this matters

Marico’s plan to reach 1.5 million direct outlets by FY27 strengthens its route-to-market moat, though any partnership or acquisition strategy should prioritize margin-accretive categories that reduce reliance on copra-exposed profits.

What to watch

  • Copra price trend, crop availability and the timing of any easing in edible-oil and packaging costs.
  • Management commentary on price hikes, grammage actions and demand elasticity.
  • Domestic volume growth versus reported value growth, especially in Parachute and Saffola franchises.
  • Quarterly EBITDA-margin trajectory and advertising-and-promotion spend as a percentage of sales.
  • Progress toward direct-distribution outlet targets, rural reach and associated operating-cost intensity.
  • Competitive pricing and promotional activity from other FMCG companies facing the same input-cost pressure.
  • Implement calibrated price increases and pack-size or grammage changes in copra-exposed portfolios.
  • Prioritize premium, value-added and lower-input-cost product mix to protect gross margin.
  • Accelerate rural and semi-urban direct-distribution expansion while using distributor productivity metrics to control servicing costs.
  • Sustain brand investment selectively behind high-velocity brands and new categories rather than broad-based spend.
  • Increase hedging, sourcing diversification and inventory planning for copra-linked volatility.