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

Marico’s Q2 revenue rose 30.7% year on year to Rs 3,482 crore, led by nearly 35% India growth. While profit slipped 0.7% and EBITDA margin narrowed to 16.1%, the FMCG company is scaling direct distribution from 1 million outlets in FY24 to 1.5 million by FY27, alongside foods and premium personal care.

— FiledMon, 7 Sept, 2026, 13:20 IST·First seen Mon, 7 Sept, 2026, 13:19 IST·Source Financial Express · BrandWagon

What happened

Marico reported marginally lower Q2 profit despite 31% revenue growth, with India sales and volumes rising. Margin pressure from copra costs and brand

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 spending up 19% YoY
  • Foods revenue up 12% YoY; Rs 1,100 crore annualised run rate
  • Digital-first portfolio crossed Rs 1,000 crore
  • International revenue Rs 815 crore, up 19% YoY
  • Direct distribution target: 1 million outlets in FY24 to 1.5 million by FY27
  • Foods growth target: over 25% CAGR for next two years

Why this matters

Marico’s push into foods, premium personal care and deeper direct distribution signals continued appetite for adjacency-building deals or partnerships that add high-growth brands, capabilities or channel access.

What to watch

  • Quarterly direct-outlet count, active-outlet rate and sales per outlet.
  • India volume growth versus value growth, especially in rural and foods categories.
  • EBITDA margin trend after the 16.1% Q2 level and management commentary on distribution-expansion costs.
  • Numeric and weighted distribution gains for Saffola Foods, value-added hair oils and premium personal care.
  • Rural demand, edible-oil/copra price movements, and trade-promotion intensity from FMCG rivals.
  • Evidence that new outlets increase cross-category basket size rather than merely shift sales from wholesale channels.
  • Prioritize high-potential rural, semi-urban and emerging urban clusters for direct servicing.
  • Use the expanded network to increase foods distribution and attach premium personal-care SKUs to existing Parachute and Saffola retailer relationships.
  • Increase retailer data capture, outlet segmentation and assisted ordering to improve route productivity and reduce stock-outs.
  • Fund selective trade schemes, visibility assets and pack-price architecture to convert new numeric distribution into repeat purchases.
  • Balance expansion spending with price/mix actions and supply-chain efficiency to protect EBITDA margin.