Festive boost, lower costs lift FMCG outlook in December quarter

The FMCG industry, which had been grappling with sluggish consumption, now anticipates a sustained recovery in demand and a gradual improvement in revenue growth over the coming quarters.

• FMCG sector expects volume-led growth and improved margins in December quarter
• Rural demand outpaced urban, with Dabur, Marico, and GCPL seeing strong recovery
• Retailers Trent, Titan, and D-Mart posted double-digit revenue and profit growth

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Benefiting from GST-related stabilisation, strong festive-season demand and easing raw material costs, the fast-moving consumer goods (FMCG) sector is expecting volume-led growth in the December quarter, supported by a mid-single-digit increase in revenue and an improvement in operating margins.

Following the normalisation of disruptions caused by GST changes—when distributors and retailers focused on clearing higher-priced inventory in the system—FMCG companies have begun to see signs of recovery, according to December-quarter updates filed by major listed players.

With trade conditions stabilising, consumer sentiment improved across both urban and rural markets. That said, the trend of rural demand outpacing urban consumption continued during the quarter, companies such as Dabur, Marico and Godrej Consumer Products Ltd (GCPL) said.

The FMCG industry, which had been grappling with sluggish consumption, now anticipates a sustained recovery in demand and a gradual improvement in revenue growth over the coming quarters.

On the distribution side, organised retail continued to post strong growth, while e-commerce—including hyperlocal delivery platforms—expanded at a robust double-digit pace.

Dabur said its India business is expected to see double-digit growth in the Home and Personal Care segment, driven by strong performance in hair oils and oral care. Brands such as Dabur Amla, Dabur Almond, Dabur Anmol, Dabur Red Toothpaste and Meswak are likely to deliver healthy volume-led growth during the quarter. The company added that most of its portfolio outperformed category growth and is expected to gain market share.

“Overall, we expect consolidated revenue to grow in the mid-single digits, with operating profit and profit after tax growing faster than revenue,” Dabur said.

GCPL, part of the Godrej Industries Group, also reported a progressive strengthening of demand conditions in the domestic market during the quarter. The company said it remains confident of a gradual recovery in consumption in the coming quarters, aided by easing inflation and improved affordability following lower GST rates. At the consolidated level, GCPL expects revenue growth close to double digits in rupee terms, along with double-digit EBITDA growth, supported by domestic performance and improving trends across its international businesses.

Marico, which owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon, said it expects consolidated revenue growth in the high twenties for the third quarter, along with margin expansion. The company reported steady demand trends during the December quarter and said it remains optimistic about a gradual pickup in consumption in the periods ahead.

Marico attributed this outlook to easing inflation, lower GST rates improving affordability, hikes in minimum support prices (MSPs) and a healthy crop sowing season. The company said underlying volume growth in its India business remained in the high single digits during the quarter, marking a sequential improvement. Year-on-year consolidated revenue growth stood in the high twenties and remains on track to meet its full-year targets.

Among retailers, Trent, Titan and Avenue Supermarts also reported strong standalone performance in their quarterly updates.

Tata Group company Trent, which operates brands such as Westside and Zudio, reported a 17 per cent rise in standalone revenue to ₹5,220 crore in the third quarter of FY26.

Avenue Supermarts, which runs the D-Mart retail chain, posted an 18.27 per cent increase in consolidated net profit at ₹855.78 crore, while revenue from operations rose 13.32 per cent to ₹18,100.88 crore during the December quarter of FY26.

Titan Co Ltd, the country’s leading branded jewellery and watchmaker, reported a 40 per cent jump in standalone revenue in the December quarter of FY26, largely driven by a surge in gold prices.