Brands
After price hikes, FMCG bets on volume growth in FY27
Easing input costs and firmer rural demand set the stage for fatter margins in FY27
MUMBAI: India’s consumer giants are shifting gears. After a year of price-led gains, fast-moving consumer goods makers are betting that FY27 will belong to volumes.
With inflation ebbing and commodity costs softening, sector leaders expect growth to be driven less by price hikes and more by shoppers returning to baskets. In the December quarter, most large FMCG firms clocked mid- to high single-digit volume growth, signalling that demand is stirring after bouts of volatility.
Key inputs are turning benign. Edible oils, wheat, copra and surfactants have softened. Coconut oil and SLES prices are easing. Vegetable oil costs have cooled. Wheat flour dipped marginally in the third quarter of FY26. Copra prices, which had spiked abnormally, have corrected by 25 to 30 per cent. With GST rationalisation, higher MSPs and a healthy crop season lending macro tailwinds, companies see a constructive backdrop for both urban and rural markets.
Price hikes have largely been taken earlier in the fiscal year. Now the playbook is different. Companies are weighing selective consumer offers, higher grammage and calibrated discounts to pass on some of the input cost relief, even as they remain watchful of rollover impacts from past increases.
Rural India continues to outpace cities. Urban demand has improved sequentially, but the countryside remains the steadier engine of growth.
At Dabur India, Mohit Malhotra, chief executive, sees next year’s expansion tilting decisively towards volume rather than pricing, though residual price effects from September hikes may linger.
Marico is banking on moderating inflation and improved affordability to drive a gradual recovery in consumption. Saugata Gupta, managing director and chief executive, expects operating profit growth to strengthen as input pressures subside. The maker of Saffola, Parachute and Livon aims to sustain volume momentum even as pricing growth moderates.
At Britannia Industries, margins are described as healthy, supported by stable commodity prices. Rakshit hargave, managing director and chief executive, points to wheat trends and seasonal dynamics in February and March as crucial indicators, but sees stability for now.
Hindustan Unilever reports a steady improvement in the operating environment and underlying demand. Priya Nair, chief executive and managing director, flags rising consumer confidence, backed by the RBI’s consumer survey, as a sign that willingness to spend is reviving. Niranjan gupta, chief financial officer, expects FY27 to outpace FY26 on the back of sustained recovery.
Godrej Consumer Products remains confident of high single-digit consolidated revenue growth. Sudhir Sitapati, managing director and chief executive, expects the India business to deliver continued growth while maintaining normative EBITDA margins. Internationally, the GAUM cluster spanning Africa, the United States and the Middle East is tipped to post double-digit revenue and profit growth, even as temporary macro and pricing pressures in Indonesia and Latin America weigh on full-year EBITDA expansion. The company expects a robust exit trajectory into FY27, with momentum carrying through the fourth quarter of FY26.
The direction of travel is clear. With costs cooling, confidence firming and rural demand holding steady, India’s consumer heavyweights are done leaning on price tags. The next leg will be fought on volumes, velocity and who can fill more baskets, faster.
Note: Certain inputs are based on reporting by The Economic Times.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
