FMCG shares in focus: HUL, Emami, Godrej Consumer gain up to 4%; here's why

FMCG shares price today

 

Shares of fast moving consumer goods (FMCG) companies rallied up to 4 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market after HUL announced June 2025 quarter (Q1FY25) earnings.  HUL, ITC, Emami, Godrej Consumer Products, Dabur India, Marico and Britannia Industries were up 1 per cent to 4 per cent on the BSE in intra-day trade.

 

At 11:15 AM; BSE FMCG index, the sole gainer among sectoral indices, was up 1 per cent, as compared to 0.5 per cent decline in the BSE Sensex. However, thus far in the calendar year 2025, the FMCG index has underperformed the market by falling 1.5 per cent, as against 3.3 per cent rise in the BSE Sensex.  READ STOCK MARKET LATEST UPDATES LIVE

HUL's Q1 results

 

HUL reported a consolidated Underlying Sales Growth (USG) of 5 per cent and an Underlying Volume Growth (UVG) of 4 per cent. The company said earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined by 130 bps year-on-year (YoY) at 22.8 per cent, in line with its guidance. Reported EBITDA was down 0.69 per cent YoY at ₹3,718 crore. Sales grew 5 per cent YoY at ₹ 16,323 crore. Net profit was up 6 per cent at ₹2,768 crore.

 

The brokerage firm Elara Capital expected revenue, EBITDA, adjusted net profit of ₹ 15,980 crore, ₹3,645 crore and ₹2,612 crore, respectively.  ALSO READ | Punjab National Bank falls 4% on Q1 results; should you buy, sell or hold?

FMCG sector outlook

 

FMCG demand has continued to remain stable, with a gradual uptick in recency. Encouraged by favourable macro-economic indicators, HUL management said the company strategically stepped up its investments to effectively advance its portfolio transformation agenda in this quarter. As a result, HUL delivered competitive, broad-based growth with an Underlying Sales Growth of 5 per cent, driven by an Underlying Volume Growth of 4 per cent, at a consolidated level. Going forward, the management expects this gradual recovery to be sustained.

 

The Indian FMCG industry’s mid-to-long term outlook remains highly optimistic, underpinned by various favourable factors. Looking ahead, HUL expects demand conditions to improve gradually over the next fiscal year. Macro conditions will benefit from monetary stimulus, lower food and crude inflation and higher agricultural output.

 

HUL maintains a strong conviction in the significant mid- to long-term potential of the Indian FMCG sector, fueled by increasing affluence across the population, currently low per capita FMCG consumption indicating substantial headroom for growth, and a rapidly developing digital infrastructure that enhances market access and consumer engagement, HUL said in its FY25 annual report.  ALSO READ | Sagility shares hit 10% upper circuit defying market weakness; here's why 

Meanwhile, Mirae Asset Sharekhan expects gradual uptick in volume growth of consumer goods comapnies on low base from Q1/Q2FY26 driven by expectations of a good monsoon, moderation in urban inflation and government impetus to aid a volume recovery. With sustained input cost inflation, most companies have likely taken further price hikes in Q1FY26. Hence, the brokerage firm believe large improvement in volume growth could be seen in H2FY26 amid stable demand. On the margin front, margins are likely to remain lower in the coming quarters and if input prices stabilise in the coming months, the brokerage firm said they might see margin expansion from H2FY26.