Marico revenue rose 31% in Q2, resurfacing its FY27 target of 1.5m direct outlets
Resurfacing a report first detailed on Nov 14, 2025: Marico's Q2 revenue reached Rs 3,482 crore, while net profit slipped 0.7% as margins tightened. The FMCG company plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27, backed by food and premium personal-care growth.
What happened
Marico reported Q2 revenue growth of 31% despite a marginal profit decline and margin pressure. It plans food and premium personal-care expansion, while
Key facts
- Q2 net profit: Rs 420 crore, down 0.7% YoY
- Q2 revenue: Rs 3,482 crore, up 30.7% YoY
- India revenue: Rs 2,667 crore, up nearly 35% YoY
- India volume growth: 7%
- EBITDA: Rs 560 crore, up 7.3% YoY
- EBITDA margin: 16.1%, versus 19.6% a year earlier
- Gross margin contraction: 810 basis points
- EBITDA margin contraction: 350 basis points
- Advertising and promotion spend: up 19% YoY
- Foods growth: 12% YoY; over Rs 1,100 crore annualised run rate
- Digital-first portfolio: over Rs 1,000 crore annualised run rate
- International revenue: Rs 815 crore, up 19% YoY
- Direct distribution: 1 million outlets in FY24 to 1.5 million by FY27
- Foods growth target: over 25% CAGR for next two years
- GST revisions expected to benefit nearly 30% of India business
Why this matters
Marico’s distribution-led growth strategy and focus on higher-value foods and premium personal care make adjacent brands, channels, and capabilities potential targets for partnership or acquisition.
What to watch
- Quarterly volume growth versus price-led growth across Parachute, Saffola and premium personal-care portfolios.
- Gross-margin trend and management commentary on copra, edible oil, packaging and advertising costs.
- Net additions to direct outlets, sales per outlet and rural versus urban growth.
- Food-category profitability, repeat purchase rates and distribution expansion beyond core channels.
- Competitive pricing and promotional intensity from Dabur, HUL, ITC, Tata Consumer and regional brands.
- Prioritise direct-distribution additions in high-potential rural and semi-urban clusters rather than broad low-productivity expansion.
- Use food and premium personal-care launches to raise assortment per outlet and improve distributor economics.
- Increase outlet-level data capture, replenishment automation and targeted trade incentives to lift sales per direct outlet.
- Protect margins through calibrated price-pack architecture, commodity hedging and mix shift toward value-added products.