Marico's Q2 revenue rose 31%; resurfacing its plan for direct reach of 1.5m outlets by FY27

Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year on year, while net profit edged down 0.7% to Rs 420 crore as copra costs and higher brand investment compressed margins. The FMCG major's plan to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27 is resurfacing, as of November 14, 2025.

— FiledFri, 11 Sept, 2026, 07:04 IST·First seen Fri, 11 Sept, 2026, 07:03 IST·Source Financial Express · BrandWagon

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 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
  • 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% YoY
  • Gross margin contracted 810 bps; EBITDA margin contracted 350 bps
  • Advertising and promotion spend up 19% YoY
  • Foods grew 12% YoY and reached Rs 1,100 crore annualised revenue run rate
  • Digital-first portfolio exceeded Rs 1,000 crore annualised revenue
  • International revenue Rs 815 crore, up 19% YoY
  • Direct distribution planned to expand from 1 million outlets in FY24 to 1.5 million by FY27
  • Foods targeted to grow above 25% CAGR over two years

Why this matters

Marico’s expanded direct-reach ambition strengthens its route-to-market moat and could make targeted brand, category, or distribution-enabling partnerships more strategically valuable as it scales beyond 1.5 million outlets.

What to watch

  • Quarterly copra price movement, procurement commentary and gross-margin/EBITDA-margin trajectory.
  • Active direct outlet additions versus the FY27 1.5 million target, including rural versus urban mix.
  • Volume growth relative to price-led growth in Parachute, Saffola, value-added hair oils and foods.
  • Advertising and promotion spend as a share of sales and whether it translates into market-share gains.
  • Management guidance on price hikes, rural demand, distributor inventory and margin recovery timing.
  • Competitive intensity from Dabur, HUL, Adani Wilmar and regional brands in edible oils, hair oils and foods.
  • Prioritize direct-distribution expansion in high-throughput rural clusters and use distributor data to identify outlet-level assortment gaps.
  • Increase pack-price architecture and smaller SKU availability to protect volume growth where commodity-led price increases reduce affordability.
  • Direct brand investment toward premium personal care, foods and value-added coconut oil variants that can improve mix and gross margin.
  • Use supply hedging, sourcing diversification and selective price actions to limit further copra-driven margin erosion.
  • Measure direct-reach expansion by active outlets, repeat orders, numeric distribution, sales per outlet and service cost rather than headline outlet count.