Marico's Q2 results resurface: revenue rose 31% as margins narrowed; targets 1.5m direct outlets by FY27

Resurfacing a mid-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 as copra costs and higher brand spending pressured margins. The FMCG major plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledTue, 8 Sept, 2026, 09:06 IST·First seen Tue, 8 Sept, 2026, 09:05 IST·Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 30.7% but a marginal profit decline as copra costs and brand investment compressed margins. It plans to expand direct

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
  • Gross margin contraction: 810 basis points
  • EBITDA margin contraction: 350 basis points
  • Advertising and promotion spending: up 19% YoY
  • India volume growth: 7%
  • Domestic revenue: Rs 2,667 crore, up nearly 35% YoY
  • India contribution: about 70-75% of revenue
  • Foods growth: 12% YoY
  • Foods annualised revenue run rate: over Rs 1,100 crore
  • Digital-first portfolio annualised revenue run rate: 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 by FY27
  • Foods growth target: over 25% CAGR for two years

Why this matters

Marico’s expanding direct network and sustained brand spending reinforce its FMCG platform scale, making targeted portfolio or distribution partnerships more strategically relevant than broad capability-building deals.

What to watch

  • Copra prices and the duration of elevated raw-material inflation.
  • Volume growth versus price/mix contribution in upcoming quarters.
  • Gross-margin and EBITDA-margin progression after increased brand spending.
  • Pace of direct-outlet additions and sales productivity per newly added outlet.
  • Rural demand, distributor inventory levels and retailer reorder rates.
  • Competitive price cuts, promotions or distribution expansion in core hair-oil and food categories.
  • Prioritize high-velocity outlets and rural clusters to ensure new direct-distribution capacity generates incremental sales rather than channel overlap.
  • Use pack-price architecture, premium variants and selective price actions to recover copra-cost inflation while protecting entry-price-point volumes.
  • Shift brand spending toward measurable conversion, repeat purchase and outlet-level execution metrics.
  • Negotiate longer-term sourcing arrangements and diversify procurement to reduce copra-cost volatility.
  • Use direct outlet data to improve assortment, demand forecasting and retailer-specific promotions.