Marico targets 1.5 million outlets by FY27 as Q2 revenue rises 31%

Marico reported Q2 revenue of Rs 3,482 crore, up 30.7% year on year, led by nearly 35% India growth. Net profit slipped 0.7% to Rs 420 crore as copra inflation, GST-transition issues and higher investments compressed margins. The FMCG major aims to expand direct distribution to 1.5 million outlets by FY27.

— Filed Tue, 18 Aug, 2026, 22:49 IST · First seen Tue, 18 Aug, 2026, 22:48 IST · Source Financial Express · BrandWagon

What happened

Marico reported Q2 revenue growth of 30.7% but a marginal profit decline amid GST transition issues, copra inflation and 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
  • 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
  • International revenue Rs 815 crore, up 19% YoY; constant-currency growth 20%
  • Foods grew 12% YoY and exceeded Rs 1,100 crore annualised revenue run rate
  • Beardo, Just Herbs and Plix portfolio crossed Rs 1,000 crore
  • Direct distribution target: 1 million outlets in FY24 to 1.5 million by FY27
  • Foods growth target: over 25% CAGR for the next two years
  • Nearly 30% of India business expected to benefit from GST rate revisions

Why this matters

Marico’s expanding direct-distribution footprint strengthens its strategic value as a route-to-market platform for brand extensions, partnerships and bolt-on FMCG acquisitions.

What to watch

  • Sequential India volume growth versus reported value growth, indicating whether expansion is generating underlying demand rather than price-led sales.
  • Direct outlet additions, active-outlet productivity and repeat-order rates relative to the FY27 1.5 million target.
  • Gross margin, EBITDA margin and management commentary on copra prices and pricing actions.
  • Advertising, salesforce and trade-spend intensity as a percentage of revenue.
  • Rural demand trends, distributor inventory levels and channel fill indicators after GST-transition disruptions.
  • Growth contribution from foods, digital-first brands and premium categories versus core coconut-oil franchises.
  • Increase frontline salesforce, distributor capacity and rural/urban cluster coverage to reach 1.5 million directly served outlets.
  • Use outlet expansion to widen availability of value packs, Saffola foods, personal care adjacencies and premium offerings rather than relying only on Parachute and legacy brands.
  • Raise retailer activation, merchandising and trade-promotion spending to secure shelf space and repeat replenishment in newly direct-served stores.
  • Seek price increases, grammage adjustments, sourcing actions and mix improvements to offset copra-led cost pressure.
  • Use direct-distribution data to sharpen assortment, localized inventory allocation and retailer-led cross-selling.