FMCG companies witnessed steady consumption trends in June quarter

Leading FMCG companies have indicated that they witnessed steady consumption trends in the domestic business while rural consumption continued to outpace urban regions. This comes even as consumer product companies have been navigating a volatile geopolitical environment and facing inflationary pressures.  

Several FMCG players said they expect to post double-digit growth for the India business for Q1FY27 even as they are closely monitoring the impact of El Nino on monsoon distribution.

In its recent quarterly update, Marico pointed out that demand trends in the June quarter remained steady, supported by resilient economic activity. The company said its India business accelerated its growth trajectory, “delivering double-digit underlying volume growth and reaching a multi-quarter high.”  “Consolidated revenue is expected to grow in the early twenties, driven by robust broad-based performance across our core, digital and international businesses,” it added.

Dabur India noted that the India FMCG business demonstrated resilience, registering “near double-digit growth” in Q1FY27. “Despite the challenging geopolitical backdrop and hyperinflationary pressures across our key markets, consumer sentiment remained resilient, with business trajectory improving sequentially, quarter-on-quarter. For the domestic business, rural and urban markets are sustaining their growth trend, with rural continuing to outpace urban,” it stated.

Godrej Consumer Products Ltd said at a consolidated level it expects to deliver  “high-teens” revenue growth for the June quarter. “Overall, across the FMCG industry we have seen an acceleration in value growth with the demand environment remaining stable, aided by continued momentum across the broader global economy and consumer sentiment holding up despite crude-led input cost inflation,” the company added. GCPL added that it began witnessing some easing of cost pressures in the closing weeks of the June quarter.  

FMCG companies said they are closely monitoring the evolving inflationary conditions as well as the impact of El Nino conditions on monsoons, as it has the potential to disrupt agricultural output and rural demand. “In the past 10 years, we haven’t seen a big correlation of El Nino on FMCG slowdown, as it is much more important to monitor the spatial distribution of rains in high-population States rather than just the headline deficit in rains. Monsoon has picked up well over the past few days, but it will remain a key monitorable,” said Abneesh Roy, Managing Director and Head of Research Committee, Nuvama Institutional Equities in an analyst note.