Marico's Q2 revenue rise of 31%, profit slip on copra costs resurfaces from mid-November report
Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year on year, while net profit fell 0.7% to Rs 420 crore, according to results detailed in a mid-November 2025 filing. The FMCG company is scaling foods, digital-first brands and direct distribution, targeting 1.5 million outlets by FY27.
What happened
Marico reported Q2 revenue growth of 31% but a marginal profit decline amid copra inflation, GST transition issues and higher brand investment. It is
Key facts
- Q2 net profit fell 0.7% YoY to Rs 420 crore
- Revenue rose 30.7% YoY to Rs 3,482 crore
- EBITDA increased 7.3% YoY to Rs 560 crore
- Gross margin contracted 810 bps
- EBITDA margin contracted 350 bps to 16.1% from 19.6%
- Advertising and promotion spending rose 19% YoY
- India volume grew 7%
- India revenue rose nearly 35% YoY to Rs 2,667 crore
- India accounts for around 70-75% of revenue
- Foods grew 12% YoY and exceeded Rs 1,100 crore annualised run rate
- Digital-first portfolio exceeded Rs 1,000 crore annualised revenue
- International revenue rose 19% to Rs 815 crore
- Direct distribution target: 1 million outlets in FY24 to 1.5 million in FY27
Why this matters
Marico’s push into foods, digital-native brands and direct distribution suggests continued appetite for adjacencies or acquisitions that accelerate premium growth and deepen reach beyond its core portfolio.
What to watch
- Copra price trajectory, crop conditions and management commentary on gross-margin pressure.
- Sequential volume growth versus price-led growth in Parachute and other core franchises.
- Advertising and promotion spend as a percentage of sales and whether it begins to normalize.
- Foods and digital-first brand growth, repeat rates, distribution breadth and contribution-margin progression.
- Direct-distribution outlet additions versus the FY27 target of 1.5 million outlets.
- Operating-margin and profit growth in the next two quarters relative to revenue growth.
- Competitive pricing activity and consumer downtrading in mass FMCG categories.
- Increase selective pricing, pack-size adjustments and promotional discipline in copra-exposed categories to protect gross margin.
- Prioritize distribution expansion toward high-throughput outlets and use direct reach to improve availability and trade economics rather than pursuing outlet count alone.
- Concentrate advertising and innovation spending behind scalable foods and digital-first brands with repeat purchase evidence.
- Use premiumization, portfolio mix and procurement hedging to reduce dependence on coconut-oil profitability.
- Communicate a clearer timeline for margin recovery and segment-level progress in newer growth engines.