Marico's Q2 revenue rose 31%, resurfacing its FY27 target of 1.5m direct outlets
Resurfacing Marico's Q2 results from mid‑November 2025, revenue hit Rs 3,482 crore while net profit slipped 0.7% and EBITDA margin narrowed to 16.1% amid higher copra costs and brand investment. The FMCG major continues scaling foods, digital-first brands and direct distribution.
What happened
Marico reported Q2 revenue growth of 31% despite a marginal profit decline and margin pressure from copra costs and brand investment. It plans foods and premium
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% a year earlier
- India volume growth 7%
- India revenue Rs 2,667 crore, up nearly 35% YoY
- India contributes 70-75% of revenue
- Advertising and promotion spending up 19% YoY
- Foods grew 12% YoY and exceeded Rs 1,100 crore annualised revenue run rate
- Digital-first portfolio exceeded Rs 1,000 crore annualised revenue run rate
- International revenue Rs 815 crore, up 19% YoY
- Direct distribution to expand from 1 million outlets in FY24 to 1.5 million by FY27
Why this matters
Marico’s push into foods, digital-first brands and direct distribution signals continued appetite for partnerships or acquisitions that accelerate premium, scalable adjacencies beyond its core portfolio.
What to watch
- Sequential movement in copra prices and management commentary on hedging, pricing actions and gross-margin recovery.
- Volume growth versus value growth in Parachute and other core franchises after any price increases.
- EBITDA margin trajectory relative to the reported 16.1% level.
- Quarterly additions to direct outlets and evidence that expanded reach is improving numeric distribution and sales per outlet.
- Growth, profitability and distribution scale of foods and digital-first brands.
- Rural demand trends, competitive promotional intensity and trade inventory changes.
- Accelerate direct-distribution rollout in high-potential rural and semi-urban clusters while using distributor data to prioritize outlet additions.
- Use selective pack-price architecture, grammage changes and premium product mix to offset copra pressure without broad-based demand destruction.
- Increase cross-selling of Saffola foods, digital-first brands and value-added personal care through the enlarged direct outlet network.
- Concentrate media and trade spending behind categories with repeat purchase potential, rather than funding broad awareness for low-scale innovations.
- Seek supply-chain and sourcing efficiencies in coconut-derived inputs, including longer-term procurement arrangements where feasible.