FMCG firms focusing on driving volume growth in upcoming quarters

FMCG companies expect volume-driven growth in the coming quarters, backed by GST cuts and improving urban-rural demand, though selective price hikes may still be taken where needed

Following their earnings for the third quarter of 2025-26 (Q3FY26), fast-moving consumer goods (FMCG) companies are focused on driving volume growth in the coming quarters. Companies ranging from Hindustan Unilever (HUL) to Dabur India have all said that their focus is on volume growth.

 

“We are reshaping the engines of growth with one clear goal —competitive volume-led revenue growth fuelled by desire at scale. Our four priorities reflect this ambition. Consumer segmentation with deeper precision, crafting brands that are modern and have stronger relevance, future-proofing our front line marketing and sales engine, and doubling down on fewer bigger bets to accelerate growth,” Priya Nair, managing director and chief executive officer (MD&CEO) at HUL, told investors on a conference call after the firm’s earnings.

 

In a recent interview with Business Standard, Saugata Gupta, MD&CEO of Marico, had also said that volume growth is improving for most FMCG companies, which are reporting sequential improvements. “This momentum is well-positioned to sustain into the coming year,” he said.

 

Goods and services tax (GST) rate cuts across various consumer goods categories, and a revival in both urban and rural consumption, are positives for FMCG companies. Dabur India is no exception and is also aiming for driving volumes.

 

“Next year's growth is going to be more volume-driven and not so much price-driven or value-driven. Volume-driven growth is a little harder to get as compared to a combination of value and volume,” said Mohit Malhotra, global CEO at Dabur India, after the company’s results.

 

Ankush Jain, chief financial officer and joint chief risk officer at Dabur India also told investors on the call that next year will likely be driven by more volume given the GST tailwinds.

 

However, price increases could also be on the anvil. Nair told HUL’s investors that the company will take price increases wherever necessary. “Given the evolving geopolitical dynamics, we will continue to closely monitor currency and commodity movements, and take calibrated price increases wherever necessary. However, we will continue to drive strong savings delivery to minimise impact on consumers,” she said.

 

The maker of Dabur Vatika hair oils said that price increase will not be absent because of certain hikes which the company effected prior to the GST cut.