Marico Q2 revenue rose 31%; resurfacing its November target of 1.5m 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 as copra costs and brand investments pressured margins, per a report resurfacing from mid-November 2025. The FMCG major plans to expand foods and premium personal care while widening direct distribution.
What happened
Marico reported Q2 revenue growth of 30.7% but a marginal profit decline as copra costs and brand investment compressed margins. It plans foods and premium
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 volume growth: 7%
- India revenue: Rs 2,667 crore, up nearly 35% YoY
- India contributes around 70-75% of revenue
- Foods annualised revenue run rate: over Rs 1,100 crore
- Digital-first portfolio annualised revenue run rate: over Rs 1,000 crore
- Direct distribution target: 1.5 million outlets by FY27, from 1 million in FY24
Why this matters
Marico’s expansion in foods, premium personal care and direct distribution points to a portfolio-upgrading strategy that could create partnership, acquisition and route-to-market opportunities in higher-growth FMCG adjacencies.
What to watch
- Quarterly volume growth versus value growth in Parachute and other core portfolios.
- Copra price trend, inventory cost carryover and management commentary on gross-margin recovery.
- Direct outlet additions, sales per outlet and the pace toward 1.5 million outlets by FY27.
- Revenue and margin contribution from foods and premium personal care.
- Rural demand recovery, distributor inventory levels and the effect of price increases on elasticity.
- Advertising-and-promotion spend as a share of sales and whether profit growth turns positive.
- Market-share movement against Dabur, HUL, Adani Wilmar and regional brands in relevant categories.
- Increase direct-distribution coverage in underpenetrated rural and semi-urban markets, prioritizing high-throughput outlets and distributor productivity.
- Push premium personal-care launches and food-category expansion through modern trade, e-commerce and direct distribution to lift average realization.
- Use calibrated price hikes, pack-size changes and promotional discipline in coconut-oil portfolios to offset copra-led margin pressure.
- Sustain elevated advertising and brand investments, with increased focus on converting new distribution into repeat purchase and market-share gains.
- Rationalize the outlet-expansion plan around profitable clusters if onboarding costs or working-capital requirements rise faster than sales productivity.