Resurfacing a November move: Marico's Q2 revenue rose 31% as it targets 1.5 million direct outlets by FY27

In results reported for the quarter ending November 2025, 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 as input costs and brand investment compressed margins. The FMCG major plans to expand direct distribution from 1 million outlets in FY24 to 1.5 million by FY27.

— FiledSun, 30 Aug, 2026, 07:43 IST·First seen Sun, 30 Aug, 2026, 07:42 IST·Source Financial Express · BrandWagon

What happened

Marico reported marginal Q2 profit decline despite 31% revenue growth, as copra costs and brand investment compressed margins. India revenue and volumes grew

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% YoY
  • India revenue: Rs 2,667 crore, up nearly 35% YoY
  • India volume growth: 7%
  • Advertising and promotion spend: up 19% YoY
  • Foods annualised revenue run rate: over Rs 1,100 crore
  • Digital-first portfolio revenue: over Rs 1,000 crore
  • Direct distribution: 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push from 1 million to 1.5 million direct outlets by FY27 strengthens its route-to-market moat and could create partnership or acquisition opportunities in regional distribution and high-growth FMCG categories.

What to watch

  • Quarterly volume growth versus price-led growth in the domestic business.
  • Gross-margin and EBITDA-margin trend, especially commentary on copra, edible oil, crude derivatives, and packaging costs.
  • Net additions to direct outlets and management disclosure on outlet throughput, assortment breadth, and rural contribution.
  • Advertising and promotion spend as a percentage of sales and its impact on profit growth.
  • Market-share movement in Parachute, Saffola, value-added hair oils, foods, and digital-first portfolios.
  • Evidence of distributor/channel conflict or rising working-capital needs from the direct-distribution push.
  • Prioritize direct-distribution expansion in high-potential rural and semi-urban clusters rather than broad low-productivity outlet additions.
  • Use the expanded sales network to increase assortments per outlet, particularly value-added foods, premium personal care, and digital-first brands.
  • Take calibrated price increases or grammage actions where commodity inflation persists while protecting core-volume demand.
  • Increase localized retailer incentives, salesforce automation, and demand forecasting to improve outlet productivity and lower servicing costs.
  • Maintain elevated brand investment to convert widened availability into repeat purchase, while monitoring payback by category and geography.