India’s fast-moving consumer goods (FMCG) sector is bracing for a subdued topline performance in the April–June quarter (Q1 FY26) due to multiple headwinds, including unseasonal rains, a shorter-than-usual summer, and persistent input cost inflation. However, companies across the sector have reported sequential recovery in demand, particularly in urban markets, and modest volume growth.
Godrej Consumer Products Ltd (GCPL) expects high single-digit value growth for the quarter, driven by volume expansion in its India business. However, the company said its standalone EBITDA margin will likely remain below its normative range. Godrej’s standalone volume growth has been described as “strongly competitive” and sequentially improving. Internationally, its GAUM (Godrej Africa, USA, Middle East) business is expected to post strong double-digit value and volume growth for the second consecutive quarter, while performance in Indonesia may be “flattish” due to intensified competitive pricing.
Dabur India anticipates low-single-digit consolidated revenue growth for Q1, largely impacted by a decline in its beverages portfolio, hit hard by unseasonal rains and a shortened summer season. Operating profit growth is expected to marginally lag revenue growth. However, Dabur’s Home and Personal Care (HPC) segment is expected to perform well, with strong growth projected for brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari, alongside double-digit growth in healthcare products including Dabur Honey, Hajmola, Honitus, and Health Juices. Dabur’s international business is also expected to deliver double-digit constant currency growth.
Marico Ltd, owner of brands such as Saffola, Parachute, Hair & Care, Nihar, and Livon, anticipates modest operating profit growth, citing sequential inflation in raw material costs—particularly copra—which was further impacted by erratic rainfall. While vegetable oil prices eased due to a cut in import duties and crude derivatives remained stable, gross margins remain under pressure due to a high base and a pricing-led high denominator effect. The company noted consistent demand patterns, with rural markets showing signs of recovery and urban demand staying steady. Marico’s international business delivered high-teens constant currency growth, with broad-based gains across markets.
Despite near-term challenges, FMCG companies remain cautiously optimistic. Marico noted that a favourable monsoon, easing inflation, and policy support could help drive recovery in the coming quarters. Meanwhile, organised retail channels, including e-commerce, modern trade, and quick commerce, continued to show robust growth momentum during Q1 FY26.
