Marico revenue rose 31% in Q2 as margins contracted; resurfacing its plan to target 1.5m direct outlets by FY27

Resurfacing a November 2025 report, 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 amid higher copra costs and brand investment. India revenue grew nearly 35%, and the FMCG major plans to expand direct distribution from 1 million to 1.5 million outlets by FY27.

— FiledMon, 3 Aug, 2026, 06:34 IST·First seen Mon, 3 Aug, 2026, 06:33 IST·Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 31% but a marginal profit decline as copra costs and brand spending compressed margins. India revenue rose nearly 35%,

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

Why this matters

Marico’s expansion from 1 million to 1.5 million direct outlets creates a larger route-to-market moat and could strengthen the strategic value of complementary brands, channels and supply-chain partnerships.

What to watch

  • Copra and other key commodity-price trends, including whether they ease enough to restore gross margins.
  • India volume growth versus value growth; strong pricing-led growth would signal demand or elasticity risk.
  • Quarterly EBITDA margin, advertising-and-promotion spend and employee/distribution expense as a share of sales.
  • Net direct-outlet additions and sales productivity per outlet against the FY27 1.5 million target.
  • Rural FMCG demand, monsoon-linked income conditions and competitive pricing by peers.
  • Management commentary on price hikes, pack-size changes, margin guidance and the duration of elevated brand investment.
  • Accelerate direct distribution additions toward 1.5 million outlets, prioritising underpenetrated rural and semi-urban markets.
  • Increase brand and trade investment behind core edible oils, hair care and newer premium categories.
  • Use calibrated price increases, grammage changes and sourcing actions to offset copra-cost pressure.
  • Push premiumisation and cross-selling through expanded direct reach to lift outlet productivity rather than only outlet count.
  • Track whether international and non-core businesses can contribute profit growth while India investment remains elevated.