Fast-moving consumer goods (FMCG) companies are likely to report a stronger financial performance in the quarter ended June 30, 2025 (Q1FY26), led by a sustained rural recovery and stable demand trends.
The business updates of Godrej Consumer (GCPL) and Dabur, released Friday, said that volume growth is likely to show an uptick in Q1, with GCPL saying that it would be in mid-single digits for the period when including soaps. Excluding soaps, GCPL’s standalone business is expected to deliver double-digit volume growth. Marico on Thursday had also alluded to stronger volume growth, saying it would reach a multi-quarter high in Q1, driven by positive trends in the core franchises and continuous scale-up of new businesses.
Dabur, on the other hand, expected a mixed performance in Q1, with solid growth in its home and personal care (HPC) and healthcare divisions offset by weaker sales in the beverage segment due to unseasonal rains and a shorter summer.
“Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth coupled with market share gains. Within healthcare, our brands such as Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are expected to post robust double-digit growth. Dabur Honitus, in particular, is expected to perform exceedingly well with over 40% growth,” Dabur said in its business update.
GCPL said that its home care business has seen broad-based and strong growth with the overall business likely to deliver double-digit value growth and underlying volume growth. Personal care, GCPL said, is expected to grow value in low-single digits, impacted by soaps.
“We believe, for FY26, we are on track to deliver mid to high-single digit underlying volume growth for the standalone business, high-single digit consolidated revenue growth and double-digit consolidated Ebitda growth for the full year,” GCPL said.
While palm oil prices had begun moderating towards the end of June, benefits of this moderation would be realised in the second half FY26, GCPL said. Marico said that while vegetable oil prices had eased following the cut in import duty, crude oil derivatives were rangebound. Copra prices, on the other hand, remained elevated.
“Owing to the above, gross margin is expected to be under incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect. We expect gross margin pressures to ease from the second half of this fiscal year (FY26),” Marico said.
Dabur said that due to the decline in beverages, Dabur’s consolidated revenue is expected to grow in low-single digits in Q1. Consolidated operating profit is likely to lag revenue growth during the period, it added.
“With the refreshed strategic vision and favourable macroeconomic conditions such as above average monsoon, good agricultural output, easing inflation and consumption-focused government measures, we expect revenue growth to regain momentum and trend higher in the coming quarters,” Dabur said.
All three firms said that they would continue to invest in brand-building, improving distribution reach and building a strong back-end to capture efficiencies in the business.
