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

Marico’s Q2 revenue rose 30.7% to Rs 3,482 crore, while net profit edged down 0.7% to Rs 420 crore as copra costs and brand investment compressed margins. India volumes grew 7%, and the company plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledWed, 2 Sept, 2026, 06:18 IST·First seen Wed, 2 Sept, 2026, 06:18 IST·Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 31% but a marginal profit decline as copra costs and brand investment compressed margins. India volume grew 7%, while

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% YoY
  • India volume growth 7%
  • Domestic revenue Rs 2,667 crore, up nearly 35% YoY
  • Foods revenue up 12% YoY; Rs 1,100 crore annualised run rate
  • Digital-first portfolio exceeded Rs 1,000 crore annualised revenue
  • International revenue Rs 815 crore, up 19% YoY
  • Direct distribution to rise from 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push from 1 million to 1.5 million direct outlets by FY27 strengthens its route-to-market moat and raises the strategic value of regional brands or distribution partnerships that deepen last-mile reach.

What to watch

  • Quarterly India volume growth relative to the current 7% rate.
  • Direct outlet additions and sales productivity per newly added outlet.
  • Copra and other key input-cost trends, along with gross-margin movement.
  • Advertising and promotion spending as a percentage of sales.
  • Rural demand recovery, small-pack sales mix, and distributor/retailer inventory levels.
  • Market-share trends in Parachute, Saffola, value-added hair oils, and foods.
  • Evidence that revenue growth converts into operating-profit and net-profit growth.
  • Prioritize outlet additions in high-growth rural, semi-urban, and underserved urban clusters rather than broad low-productivity coverage.
  • Use direct distribution data to tighten assortment, replenishment, and localized pricing by outlet type.
  • Increase small-pack and entry-price-point availability to convert new outlets without relying solely on discounting.
  • Cross-sell premium and adjacent categories through newly direct-served stores to improve distributor economics and gross margin mix.
  • Balance brand investment with outlet productivity metrics, including sales per direct outlet, repeat orders, and numeric-to-weighted distribution conversion.