Fmcg Companies

FMCGs grapple with cost inflation in Q2, brace for margin pressure in H2

FMCG companies face sustained margin pressure in the second half of the current fiscal year as rising input costs squeeze profitability, with firms weighing post-Diwali price hikes against the risk of hurting consumer demand, particularly in price-sensitive mass-market and rural categories. Input-cost pressures intensified in the September quarter, reversing some of the moderation seen in the preceding quarter, which squeezed margins even as companies absorbed part of it to protect consumer demand during the festive season. The increase has been uneven across commodities, with crude-linked derivatives, packaging materials, palm oil and sugar emerging as key pressure points, said Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat. "In rupee terms, palm oil prices were approximately 21 per cent higher year-on-year in September, while sugar prices remained around 18 per cent higher year-on-year despite correcting 8 per cent month-on-month," he said. Higher .

Nestle India Q2 result: Net profit rises 36% to ₹1,026 cr, revenue up 20%

FMCG major Nestle India on Thursday reported a 36.32 per cent rise in consolidated net profit at Rs 1,026.77 crore for the September quarter of FY27, on a year-on-year basis. The company had posted a consolidated net profit of Rs 743.17 crore in the corresponding period last fiscal, Nestle India said in a regulatory filing. Nestle India's revenue from sale of products rose 20.45 per cent to Rs 6,782.17 crore in July-September quarter of FY27. This was Rs 5,630.23 crore in the corresponding period a year ago. "The quarter saw a continuation of strong and broad-based growth across all product groups, with total sales reaching INR 6,782.2 crore, with a growth of 20.5 per cent, which was driven by robust, double-digit volume growth," said Chairman and Managing Director Manish Tiwary. The company continued to focus on operational efficiencies while significantly increasing investments behind its brands, with advertising and marketing spend up 46 per cent. "EBITDA margin remained health

Rising input costs to weigh on FMCG margins despite demand recovery in Q2

Rising input costs are likely to put pressure on operating margins for Indian fast-moving consumer goods companies in the September quarter, even as resilient demand and growth in key product categories support revenue expansion. A sharp rise in crude oil and its derivative products used in packaging, along with a persistent inflationary trend in various commodities and deficit rainfall, has increased cost pressures across companies depending on their product mix, pricing power and cost-saving measures. A report from brokerage ICICI Direct said higher crude and crude-derivative prices, coupled with increases in other key input costs, are likely to affect earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of most home and personal care companies. "Spike in the crude oil/crude derivative prices coupled with increase in the other key input prices will have impact on the EBITDA margins of most of the home care and personal care companies under coverage," it

Before you bite: How FMCG companies manage food-safety from factory to shelf

From testing raw materials to holding batches and conducting mock recalls, food companies are building systems to catch problems related to products before they reach consumers

ITC leads as Nifty FMCG gains 2%; festive season puts sector in focus

In the Nifty FMCG basket 13 stocks advanced while only 2 declined. Intraday, the FMCG index was up 1.82 per cent to 45,645.20.

Tata Consumer Products acquires additional 5% stake in Capital Foods

Tata Consumer Products acquires additional stake from Wildflower Private Trust, taking its holding in the Ching's Secret and Smith & Jones maker to 80 per cent

FMCG's new growth playbook: From shelf space to digital-first discovery

As consumers move between social media, quick commerce, marketplaces and stores, FMCG brands are rethinking how they build awareness, drive purchases and retain customers

Top FMCG firms reshuffle leadership as industry navigates growth challenges

The Indian fast-moving consumer goods (FMCG) sector is witnessing a wave of leadership changes, with several leading companies appointing new chief executives and elevating senior executives as they seek to sharpen execution, drive growth and adapt to an evolving consumer landscape. In the last 12 months or so, at least half a dozen major FMCG companies, including Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL), Dabur India, Britannia Industries and Colgate-Palmolive India, have announced transitions at the top level, with Nestle India's own change of guard having taken place just before that window. These leadership changes have come at a time when FMCG companies are grappling with a challenging operating environment marked by uneven consumer demand, rising competition from regional and local players, and pressure to deliver volume-led growth while protecting market share, profitability and earnings. Companies are also contending with elevated input costs driven b

Parle, Britannia India's most chosen FMCG brands: Brand Footprint

Parle Products retained the top in-home position for the 14th consecutive year, while Britannia led the out-of-home rankings, according to Brand Footprint India 2026

Parle, Britannia India's most chosen FMCG brands: Brand Footprint India '26

Parle Products retained its in-home leadership for the 14th consecutive year, while Britannia topped the out-of-home rankings, according to Brand Footprint India 2026

FMCG firms signal Q2 price hikes as input costs stay high, demand resilient

Rising input costs due to commodity inflation and geopolitical uncertainties are prompting leading FMCG makers to implement calibrated price hikes in the September quarter, as they remain optimistic about demand, citing resilient consumption trends, premiumisation, and improved revenue growth. The FMCG sector, which took an average hike of around 2-5 per cent in the June quarter, is going for shrinkflation by reducing the grammage weight or selective pricing actions in the current quarter to protect margins, even as they stay watchful of inflationary pressures, crude oil volatility and weather-related risks such as the monsoon and El Nino. Leading bakery food company Britannia said it expects to add another 1.5 to 2 per cent in pricing in the second quarter through "shrinkflation" in its Rs 5 and Rs 10 biscuit packs, as commodity prices for sugar and palm oil are on the higher side. Britannia said its Q1 pricing-led growth came mainly from shrinkflation, and expects further pricing

ITC jumps 4% post Q1 results; is the worst over? Here's what brokerages say

ITC Q1 results: ITC's cigarette business volume declined of 4-5% in Q1FY27, lesser than the Street expectation of 8-10% dip, believe analysts at ICICI Securities.

Global FMCG majors to boost investments in India, widen retail presence

Global consumer products makers have reported strong consumer demand and market share gains in India in the June quarter, highlighting India's role as a long-term growth engine and have indicated plans to step up investments to strengthen their presence in one of the world's fastest-growing consumer markets. Global consumer goods majors such as Mondelez International, L'Oreal, Reckitt, Unilever, Nestle and The Coca-Cola Company see India as a key growth market and a major driver of future growth. In their earnings calls, their top executives have pointed to resilient consumer demand, accelerating premiumisation, expanding distribution networks, focus on low-price packs, strong performance of digital and e-commerce channels, and rising market share across categories in India. American snacking major Mondelez International, maker of brands such as Oreo, Cadbury Dairy Milk and Toblerone, said demand remained "solid" in India during the second quarter of 2026 and that it expanded its ..

India's FMCG sector faces margin squeeze as costs spike amid strong demand

Marico and Godrej Consumer Products are among the most frequently preferred stocks across brokerages ahead of the earnings season that Nestle India kicks off on July 22

Avenue Supermarts slips 5% post Q1 business update; stock down 8% in 2 days

Revenue growth is weak considering the large number of store openings in March 2026 and support from inflationary trends even after normalizing for the surge in March 2026 amid the war, said MOFSL.

FMCG firms recalibrate approach as consumer market rewards speed over scale

5 years ago, Aashirvaad &Surf Excel could run one national television commercial and win. Today, the Zepto shopper in Bengaluru and the kirana buyer in Gidderbaha, Punjab, live in different economies

ITC slips 9% in 3 days; plunges 32% so far in 2026; should you buy or sell?

Volatility in cigarette volumes and EBIT to moderate from the initial transitionary phase; and given the MRP revisions are still underway, the outlook for cigarette biz remains uncertain, analysts.

FMCG companies push volume cart; price hikes to be limited amid challenges

Play the long game on pricing to protect consumption growth amid rising raw material and freight costs

Why high inflation bodes well for FMCG companies: Harini Dedhia decodes

Having witnessed a prolonged period of benign inflation in the last decade, we should have expected FMCG companies to witness great volume growth, if not value. However, the opposite has been true

FMCG sector likely to see 5% volume growth in 2026: Worldpanel by Numerator

Worldpanel by Numerator said FMCG volume growth could approach 5 per cent in 2026 if crude prices stabilise and monsoon conditions remain supportive