Marico's Q2 revenue jump of 31% and margin-pressured profit resurface from November report
Resurfacing a November 14 disclosure: Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year-on-year, while net profit slipped 0.7% to Rs 420 crore as higher copra costs and brand investment compressed EBITDA margin. The company plans to expand direct distribution to 1.5 million outlets by FY27.
What happened
Marico’s Q2 profit fell marginally to Rs 420 crore despite 31% revenue growth, as copra costs and brand investments compressed margins. India revenue rose
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%
What changed
Marico’s Q2 profit fell marginally to Rs 420 crore despite 31% revenue growth, as copra costs and brand investments compressed margins. India revenue rose nearly 35%; it plans foods and premium-personal-care expansion and 1.5 million direct outlets by FY27.
Why this matters
Marico’s 30.7% revenue growth validates demand and distribution momentum, but rising copra costs and higher brand spending require tighter margin management as direct reach targets 1.5 million outlets by FY27.
What to watch
- Copra and edible-oil price trend over the next two quarters.
- Sequential EBITDA-margin recovery versus the reported 16.1%.
- Domestic volume growth after any price hikes or grammage changes.
- Progress in direct outlet additions toward the FY27 1.5 million target.
- Market-share movement in Parachute and other core categories.