Marico 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 as copra inflation and brand investment compressed margins. The FMCG major plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledMon, 14 Sept, 2026, 17:06 IST·First seen Mon, 14 Sept, 2026, 17:04 IST·Source Financial Express (via Wayback)

What happened

Marico reported marginal Q2 profit decline despite 31% revenue growth, driven by pricing and 7% India volume growth. Margin pressure reflected copra costs and

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 share of revenue: 70-75%
  • Foods growth: 12% YoY; annualised run rate above Rs 1,100 crore
  • Digital-first portfolio annualised run rate above Rs 1,000 crore
  • International revenue: Rs 815 crore, up 19% YoY
  • Direct distribution outlets: 1 million in FY24 to 1.5 million by FY27

Why this matters

Marico’s plan to add 500,000 direct outlets by FY27 increases the strategic value of regional distribution partners, last-mile capabilities and brands that can scale efficiently through its expanded route-to-market.

What to watch

  • Sequential India volume growth versus price-led growth.
  • Copra price trend, inventory holding period and management commentary on pass-through ability.
  • EBITDA margin trajectory after the reported 350 bps year-on-year decline.
  • Net additions in directly serviced outlets and sales per direct outlet.
  • Rural demand, distributor inventory levels and competitive pricing in coconut oil and value-added hair oils.
  • Advertising and promotion spend as a percentage of sales.
  • Growth and margin contribution from foods, premium personal care and digital-first brands.
  • Prioritize outlet additions in underpenetrated rural and semi-urban clusters where direct servicing can replace distributor dependence.
  • Increase sales-force, route-to-market and digital ordering investments to improve outlet productivity rather than merely adding nominal reach.
  • Use targeted pack-price architecture and selective price increases to protect gross margin in copra-exposed categories.
  • Reinvest distribution data into assortment, replenishment and cross-selling of foods, digital-first and premium personal-care brands.
  • Moderate promotional spending if commodity costs remain elevated, concentrating brand investment behind high-repeat and high-margin SKUs.