Resurfacing Marico's Q2 report: revenue rose 31% as it targets 1.5m direct outlets by FY27

Resurfacing a previously reported figure: 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 higher copra costs, GST-transition disruption and increased brand spending. India revenue grew nearly 35%; the company plans to expand direct reach from 1 million to 1.5 million outlets by FY27.

— FiledFri, 4 Sept, 2026, 05:34 IST·First seen Fri, 4 Sept, 2026, 05:33 IST·Source Financial Express · BrandWagon

What happened

Marico’s Q2 revenue rose 31% while profit slipped amid GST transition issues, high copra costs and brand investment. India sales rose nearly 35%. The FMCG

Key facts

  • Q2 net profit Rs 420 crore, down 0.7% YoY
  • 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% last year
  • Gross margin contracted 810 bps; EBITDA margin contracted 350 bps
  • Advertising and promotion spending up 19% YoY
  • Foods grew 12% YoY and crossed Rs 1,100 crore annualised run rate
  • Digital-first portfolio crossed Rs 1,000 crore annualised run rate
  • International revenue Rs 815 crore, up 19% YoY
  • Direct distribution network planned to rise from 1 million outlets in FY24 to 1.5 million by FY27

Why this matters

Marico’s push to reach 1.5 million direct outlets by FY27 strengthens its route-to-market moat and could make regional brands, distribution capabilities and adjacent FMCG categories more strategically attractive.

What to watch

  • Sequential movement in copra prices and management commentary on gross-margin recovery or further price actions.
  • India volume growth versus value growth, especially whether nearly 35% India revenue growth is price/mix-led or broad-based volume-led.
  • Direct outlet additions, weighted distribution, outlet productivity and rural sales growth versus the 1.5 million FY27 target.
  • Q3 normalization of GST-transition disruption in distributor and retailer inventories.
  • Advertising-and-promotion spending as a percentage of sales and any increase in trade incentives.
  • Market-share trends in Parachute, Saffola and newer personal-care/foods portfolios.
  • Net-profit and EBITDA-margin performance relative to revenue growth over the next two quarters.
  • Prioritise direct-distribution rollout in high-throughput rural, peri-urban and underserved urban clusters rather than pursuing outlet count alone.
  • Use outlet-level sales productivity, repeat ordering and numeric-to-weighted-distribution conversion as the key tests of the FY27 expansion plan.
  • Balance price increases, pack-size architecture and promotional spending to protect volumes in copra-sensitive categories.
  • Increase premiumisation and mix contribution from less commodity-exposed personal-care and foods brands to offset coconut-cost volatility.
  • Maintain elevated brand investment selectively around newly opened distribution clusters to improve retailer pull-through and reduce churn.