Marico resurfaces Q2 FY26 update: revenue rose 31%, targeting 1.5m direct outlets by FY27

Resurfacing Marico’s Q2 FY26 results, revenue grew 30.7% year-on-year to Rs 3,482 crore, while net profit slipped 0.7% to Rs 420 crore amid copra-led margin pressure. India volumes rose 7%, and the FMCG company plans to add 500,000 direct-distribution outlets by FY27.

— FiledSat, 5 Sept, 2026, 05:49 IST·First seen Sat, 5 Sept, 2026, 05:49 IST·Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 31% despite a marginal profit decline and margin pressure from copra costs. India volumes rose 7%; it plans food and

Key facts

  • Q2 net profit fell 0.7% YoY to Rs 420 crore
  • Revenue rose 30.7% YoY to Rs 3,482 crore
  • EBITDA increased 7.3% YoY to Rs 560 crore
  • EBITDA margin declined to 16.1% from 19.6%
  • India volumes grew 7%
  • Domestic revenue rose nearly 35% YoY to Rs 2,667 crore
  • Foods grew 12% YoY and crossed Rs 1,100 crore annualised run rate
  • Digital-first portfolio crossed Rs 1,000 crore annualised revenue
  • International revenue rose 19% YoY to Rs 815 crore
  • Direct distribution to expand from 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push toward 1.5 million direct outlets by FY27 increases the strategic value of partnerships or acquisitions that add last-mile distribution, regional reach, or supply-chain resilience.

What to watch

  • Quarterly copra price trends and management commentary on the timing and magnitude of additional price hikes.
  • India volume growth versus value growth; a widening gap would indicate increasingly price-led expansion.
  • Net addition of direct outlets and whether the FY27 target is accompanied by higher sales per outlet.
  • Gross-margin and EBITDA-margin movement in the next two quarters.
  • Market-share trends in coconut oil, value-added hair oils and Saffola categories.
  • Rural demand indicators, including distributor inventory, outlet throughput and small-pack sales.
  • Growth and profitability contribution from foods, premium personal care and digital-first brands.
  • Prioritize the 500,000-outlet expansion in high-growth rural, semi-urban and underserved general-trade clusters rather than simply increasing numeric distribution.
  • Use pack-price architecture, including smaller packs and calibrated grammage changes, to protect coconut-oil volumes while partially passing through copra inflation.
  • Increase cross-selling of value-added hair oils, Saffola foods and personal-care products through newly direct-serviced outlets.
  • Tighten trade-spend and supply-chain productivity programs to offset commodity-led gross-margin compression.
  • Use improved direct-distribution data to identify low-velocity SKUs, optimize assortment and target retailer-specific promotions.