Marico revenue rose 31% in Q2 as margin pressure trimmed profit, resurfacing a November announcement

Marico posted 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 investment compressed margins. The FMCG major plans to scale direct distribution to 1.5 million outlets by FY27 — a move first disclosed in mid-November 2025 that is now resurfacing.

— FiledThu, 30 Jul, 2026, 23:49 IST·First seen Thu, 30 Jul, 2026, 23:48 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. It plans faster 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 share of revenue: 70-75%
  • Foods growth: 12% YoY; Rs 1,100 crore annualised run rate
  • Digital-first portfolio: over Rs 1,000 crore
  • International revenue: Rs 815 crore, up 19% YoY
  • Direct distribution target: 1 million outlets in FY24 to 1.5 million in FY27

Why this matters

Marico’s plan to reach 1.5 million direct outlets by FY27 strengthens its route-to-market moat and could create opportunities for distribution-led partnerships and category expansion.

What to watch

  • Copra-price trend and its impact on gross margin over the next two quarters.
  • Domestic volume growth versus value growth, especially in Parachute and Saffola franchises.
  • Management commentary on pricing actions, promotional spending and margin-recovery timing.
  • Net additions to direct-distribution outlets and whether incremental reach translates into repeat sales.
  • Rural-demand recovery, competitive intensity and market-share movement in core categories.
  • Expand direct distribution toward the FY27 target of 1.5 million outlets, prioritising underpenetrated rural and semi-urban markets.
  • Sustain brand investment to protect category share and improve premium-product mix despite near-term margin dilution.
  • Use calibrated price hikes, pack-size changes and sourcing initiatives to offset copra-cost pressure.
  • Push higher-margin foods, digital-first and premium personal-care products to reduce dependence on coconut-oil profitability.