Some of the country’s leading fast-moving consumer goods (FMCG) companies expect double-digit growth in both revenue and profit in the June quarter of FY27 (Q1), driven by calibrated pricing action and broad-based growth across categories.
Latest business updates by firms such as Dabur, Godrej Consumer (GCPL), Marico and AWL Agri Business indicate that demand conditions have been stable in Q1 despite inflationary pressures. On Friday, Dabur said that it saw double-digit growth in consolidated Q1 topline and profit supported by healthy demand across its domestic and international businesses.
Rural Renaissance
Rural demand, Dabur said, continued to outpace urban markets, while price hikes helped offset higher input costs during the quarter. GCPL said that consolidated revenue growth was likely to be in the high-teens in Q1, ahead of its full-year double-digit guidance, led by high single-digit underlying volume growth (UVG). Consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) was also expected to come in ahead of its double-digit guidance, though margins were likely to be lower due to elevated input costs.
Marico, meanwhile, said it expected consolidated revenue to grow in the early twenties in the first quarter of FY27, driven by broad-based growth across its core, digital and international businesses. While the India business delivered double-digit underlying volume growth and reached a multi-quarter high, it added.
“Demand trends during the quarter remained steady, supported by resilient economic activity. Looking ahead, we remain optimistic about consumption trends, while monitoring the evolving inflationary conditions and the impact of El Niño on the monsoon,” Marico said.
Edible Oils vs. Staples
AWL Agri Business said it expected mid-single-digit volume growth in Q1, driven by strong performance in its food and FMCG portfolio, alternate channels and industry essentials segment. The company derives around 75-80% of its revenue from edible oils; around 10% from food & FMCG and the rest from industry essentials.
The company said that its food & FMCG segment delivered over 20% year-on-year revenue growth with over 17% volume growth in Q1, led by strong performance in rice, which grew over 40%. Wheat flour continued its recovery, while other food categories including pulses, besan, soya nuggets, sugar, poha and personal care products grew 25% year-on-year. The company also added the Madhur brand through a licensing arrangement during the quarter.
AWL Agri’s edible oil business posted 13% revenue growth in Q1, while volumes remained broadly flat due to cautious inventory building amid geopolitical uncertainty. Alternate channels within the segment grew in the low teens in volume terms.
Marico said that its Parachute Coconut Oil brand delivered a robust performance touching double-digit volume growth in Q1, its highest in several quarters. Saffola Oils recorded mid-single-digit price-led revenue growth, although volumes declined after the company rationalised supplies of select variants to maintain profitability.
Marico’s Value Added Hair Oils (VAHO) portfolio reported revenue growth in the twenties in Q1, aided by focus on the mid and premium segments, expanded direct reach through Project SETU and product innovations. Foods and Premium Personal Care, including digital-first brands, continued to scale up, it added.