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Higher volumes, margins potential rerating triggers for FMCG companies

FMCG companies are seeing structural growth since categories like shampoos and detergents are under-penetrated

FMCG
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Management commentary is optimistic with a good monsoon, and hopes of lower GST.

Devangshu Datta New Delhi

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The fast moving consumer goods (FMCG) sector is looking at volume growth and better margins from the second quarter of the ongoing financial year 2026 (Q2FY26).
 
FMCG companies are seeing structural growth since categories like shampoos and detergents are under-penetrated. Consumers are also opting for premiumisation, which is a key driver. Rural growth has sustained and a good monsoon may lead to acceleration in demand.
 
Some raw materials are also seeing moderating inflation. Grain prices are almost unchanged though wheat is slightly up. Coffee, cocoa, and tea prices have softened by high