Marico's Q2 revenue rose 31%, resurfacing its plan to reach 1.5 million direct outlets by FY27
Resurfacing a November 2025 report: Marico posted Q2 revenue of Rs 3,482 crore, up 30.7% year-on-year, while net profit slipped 0.7% to Rs 420 crore amid high copra costs and higher brand investment. India revenue grew nearly 35%; the company plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.
What happened
Marico reported Q2 revenue growth of 30.7% but a marginal profit decline amid GST transition, high copra costs and brand investment. India revenue rose nearly
Key facts
- Q2 net profit: Rs 420 crore, down 0.7% YoY
- Q2 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 revenue: Rs 2,667 crore, up nearly 35% YoY
- India volume growth: 7%
- India share of revenue: 70-75%
- Advertising and promotion spending: up 19% YoY
- Foods growth: 12% YoY; over Rs 1,100 crore annualised run rate
- Digital-first portfolio: over Rs 1,000 crore
- International revenue: Rs 815 crore, up 19% YoY
- Direct distribution outlets: 1 million in FY24 to 1.5 million by FY27
Why this matters
Marico’s push to add 500,000 direct outlets by FY27 signals a priority on route-to-market scale, creating potential opportunities in distribution partnerships, sales technology, and regional reach.
What to watch
- Sequential volume growth in Parachute coconut oil and India business, separating price-led revenue from underlying consumption.
- Copra price trajectory, inventory cost lag and management commentary on gross-margin recovery.
- Direct-outlet additions, outlet productivity and rural versus urban distribution expansion progress toward the 1.5 million FY27 target.
- Advertising and promotion spend as a share of sales, alongside market-share changes in core categories.
- Frequency and magnitude of price hikes, downtrading signals and competitive promotional intensity.
- Operating-margin and net-profit performance relative to revenue growth over the next two quarters.
- Accelerate direct-distribution additions in underpenetrated rural and semi-urban markets, supported by distributor digitization and outlet-level assortment analytics.
- Prioritize high-velocity SKUs and premium mixes in newly served outlets to lift sales per outlet rather than pursuing numeric reach alone.
- Use calibrated price increases, pack-size changes and promotional architecture to offset copra inflation while protecting entry-price affordability.
- Sustain brand investment behind differentiated franchises and digital-first brands, while tightening measurement of incremental sales and market-share returns.
- Pursue sourcing, inventory and hedging actions for copra exposure; communicate the expected timing of gross-margin normalization.