FMCG majors stay upbeat on FY27 despite inflation concerns

MUMBAI: The shopping basket is still filling up, even as companies keep one eye on the weather forecast. India’s leading fast-moving consumer goods (FMCG) companies are entering FY27 with cautious optimism, buoyed by resilient consumer demand and easing commodity prices, even as inflation, volatile raw material costs and the threat of El Niño remain key risks, according to a Moneycontrol report.

Companies including Dabur India, Godrej Consumer Products (GCPL) and Marico reported healthy business momentum during the April-June quarter, signalling that consumption has remained steady across both urban and rural markets despite a challenging cost environment.

Among the major players, Marico expects consolidated revenue growth in the early twenties during the June quarter, while GCPL has guided for high-teen growth. Dabur has projected double-digit growth in both consolidated revenue and profit after tax for the quarter ended 30 June 2026. The upbeat outlook has been supported by broad-based demand across domestic and international markets, improving rural sentiment and continued traction from newer retail channels such as e-commerce and quick commerce. Rural demand, in particular, has continued to outperform urban markets, providing an additional boost to consumer goods companies.

Despite the positive momentum, executives remain watchful of input costs. Commodity prices stayed elevated for much of the quarter before showing signs of easing in recent weeks. Godrej Consumer Products said it expects margins to improve through calibrated price increases, cost optimisation initiatives and operational efficiencies.

The company also highlighted the potential impact of El Niño, warning that weather-related disruptions could affect agricultural output and rural demand in some markets. However, it said its diversified sourcing network and broad product portfolio should help cushion any significant disruption.

Dabur said its focus remains on driving consumption, improving cost competitiveness and leveraging digital capabilities to deliver profitable growth. It also expects demand in international markets, particularly West Asia, to strengthen as regional conditions stabilise.

Marico echoed the cautious optimism, noting that while inflation and monsoon developments will continue to be closely monitored, it remains confident in consumer demand and its ability to deliver sustainable, volume-led growth through continued brand investments and expansion into new growth categories.

The latest outlook suggests India’s FMCG sector is navigating a delicate balancing act. While easing input costs and resilient consumption are supporting growth, companies remain prepared for weather-related uncertainties and commodity price swings that could test margins in the months ahead.