Sustained volatility in crude prices could create pressure on gross margins across the FMCG sector, warn analysts.
Nomura's top picks include Britannia and Titan. It also prefers Marico, Tata Consumer, Godrej Consumer, Asian Paints and United Spirits
Nifty FMCG index dropped 2.4 per cent today as commodity prices rise amid Iran war. Nomura warned that higher input costs could hurt margins of HUL, GCPL and Colgate Palmolive in Q1FY27
Leading fastmoving consumer goods (FMCG) companies expect volumedriven growth to take centre stage in the next fiscal year, supported by easing inflation and stable commodity prices that have begun to ease pressure on margins. In the December quarter, leading FMCG companies reported mid- to high single-digit volume growth. On their latest earnings calls, the industry captains said the operating environment is turning more favourable after several quarters of volatility. Key inputs such as edible oils, wheat, copra and surfactants softened, and with macroeconomic tailwinds including GST rationalisation, higher MSPs and a healthy crop season, FMCG makers anticipate sustained demand recovery. Most players have already taken calibrated price hikes earlier in the fiscal year and now expect growth to be led by volumes rather than pricing. Some companies indicated they may pass on some benefits of lower input costs to consumers through offers, increased grammage or selective discounts, ev
For Q4, the brokerage expects Marico to lead the HPC segment with around 20 per cent sales growth, followed by 9-10 per cent growth for Dabur India and Godrej Consumer Products
As a strategy, Gaurang Shah, head investment strategist at Geojit Investments remains selectively bullish on the FMCG stocks on the back of a likely improvement in semi-urban and rural demand.
Thus far in the calendar year 2026, the BSE FMCG index has underperformed the market by falling 7 per cent, as against 4.8 per cent decline in the BSE Sensex.
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In Q3, the fast-moving consumer goods (FMCG) company Godrej Consumer Products reported a marginal decline in its consolidated net profit at ₹497.91 crore as compared to ₹498.31 crore a year ago
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Fast-moving consumer goods company Godrej Consumer Products Ltd on Friday reported a marginal decline in its consolidated net profit at Rs 497.91 crore in the third quarter ended December 2026. It posted a net loss of Rs 498.31 crore in the October-December period a year ago, according to a regulatory filing from Godrej Consumer Products Ltd (GCPL). Revenue from sales of the Godrej group's FMCG arm was up 8.81 per cent at Rs 4,079.47 crore in the quarter under review. It was at Rs 3,749.11 crore in the corresponding quarter a year ago. Its revenue from operations was at Rs 4,099.12 crore in the latest third quarter, up 8.77 per cent from a year ago. GCPL's total expenses were at Rs 3,364.03 crore, up 6.3 per cent year-on-year. GCPL operates in soap, hair colourants, toiletries and liquid detergents and has a presence in several emerging markets. Revenue of GCPL from the Indian market, where it operates with brands such as Good Knight, Cinthol and HIT, was Rs 2,510.34 crore in the
Godrej Consumer Products flags double-digit volume growth in Q3 FY26 as home care and soaps rebound, with margins set to recover on lower palm oil prices
Nomura has maintained Godrej Consumer as its top pick and forecasts an Earnings per share (EPS) compound annual growth rate (CAGR) of 18.5 per cent over FY26-28F
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Godrej Consumer Products Ltd on Tuesday said demand conditions in India strengthened progressively during the third quarter ended December 2025, and the company is confident of a gradual improvement in consumption over the coming quarters. In its quarterly update, Godrej Consumer Products Ltd (GCPL) said falling inflation and improving affordability following lower GST rates would support growth of consumption, and its standalone business is well-positioned to deliver double-digit revenue growth in the third quarter. "...demand conditions in India strengthened progressively during the quarter. We remain confident of a gradual improvement in consumption over the coming quarters, supported by falling inflation and improving affordability following lower GST rates," GCPL said in a regulatory filing. Against this backdrop, it said, "Our standalone business is well-positioned to deliver double-digit revenue growth for the quarter, underpinned by close to double-digit underlying volume .
Godrej Consumer Products expects double-digit consolidated revenue and EBITDA growth in the October-December quarter, led by strong home care demand and improving consumption trends
In the latest note on the consumer goods sector, Emkay analysts Nitin Gupta and Mohit Dodeja estimated revenue growth of around 6% Y-o-Y & Ebitda growth of about 7% for listed FMCG players in Q3.
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Emkay Research points out that GST cuts have boosted consumer sentiment, and growth benefits are likely to be visible going ahead
Nomura sees GCPL, Tata Consumer, Marico, and Britannia as the key near-term winners of the commodity downcycle.