Marico’s Q2 revenue rise of 31% resurfaces as margin pressure trimmed profit

Resurfacing a report first noted around Q2 earnings season, Marico’s revenue rose 30.7% year-on-year to Rs 3,482 crore, while net profit slipped 0.7% to Rs 420 crore amid higher copra costs and brand spending. The FMCG company is targeting direct-distribution expansion to 1.5 million outlets by FY27, from 1 million in FY24.

— Filed Fri, 21 Aug, 2026, 22:19 IST · First seen Fri, 21 Aug, 2026, 22:19 IST · Source Financial Express · BrandWagon

What happened

Marico reported marginally lower Q2 profit despite 31% revenue growth, driven by price hikes and India demand. Margin pressure from copra costs and brand

Key facts

  • Q2 net profit Rs 420 crore, down 0.7% YoY
  • 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 contracted 810 basis points; EBITDA margin contracted 350 basis points
  • Advertising and promotion spending up 19% YoY
  • Foods revenue up 12% YoY and Rs 1,100 crore annualised run rate
  • Digital-first portfolio exceeded Rs 1,000 crore annualised revenue
  • International revenue Rs 815 crore, up 19% YoY
  • Direct distribution targeted to expand from 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push from 1 million to 1.5 million direct outlets by FY27 increases the strategic value of distribution-tech, last-mile logistics and regional-brand partnerships that can deepen rural and general-trade access.

What to watch

  • Copra price trajectory and management commentary on gross-margin recovery.
  • Volume growth versus price-led growth in the next two quarters.
  • Direct-distribution outlet additions, rural sales growth and sales-per-outlet productivity.
  • Advertising and promotion spend as a percentage of sales.
  • Competitive pricing and promotional intensity in coconut oil, hair care and value packs.
  • Rural consumption indicators, monsoon-linked income trends and distributor inventory levels.
  • Use selective price increases and grammage optimization in copra-exposed portfolios while protecting entry-price packs.
  • Prioritize direct-distribution expansion in high-potential rural, semi-urban and underpenetrated urban clusters.
  • Shift media and trade spending toward measurable outlet activation, repeat purchase and premium-category conversion.
  • Increase hedging, sourcing diversification and inventory discipline for copra and other volatile inputs.
  • Lean on premium personal-care, foods and digital-first brands to offset pressure in core commodity-linked categories.