&w=3840&q=100)
FMCG makers see impact of erratic weather on topline growth in Q1FY26
However, the FMCG industry witnessed a sequential recovery in demand during the quarter, with an uptick in volume growth, particularly in urban markets.
Margins of FMCG majors such as Marico, Dabur, and Godrej Consumer remained below the normative level, and they expect a low-single-digit volume growth in the April-June period.
Godrej Consumer Products expects its margin from the India business to stay below the 'normative range' in the June quarter, but is likely to deliver high-single-digit value growth aided by volume expansion.
The company's volume growth, in its standalone business, has been strongly competitive and is sequentially improving, said the Godrej Industries Group FMCG arm in its quarterly updates.
"Standalone EBITDA margin in Q1FY26 is likely to be below our normative range but is expected to improve," said Godrej Consumer Products Ltd (GCPL).
Dabur's consolidated revenue in the June quarter is expected to grow in low-single digits on account of a decline in beverages, which was impacted during the quarter due to unseasonal rains and a short summer.
Its "consolidated operating profit growth is expected to marginally lag revenue growth," said Dabur in its updates for the June quarter.
However, Dabur's home and personal care (HPC) division is expected to perform well, driven by the oral, home and skin care categories.
"Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth coupled with market share gains. Within healthcare, our brands such as Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are expected to post robust double-digit growth," said Dabur.
Similarly, Marico expects a 'modest operating profit' in the June quarter as it continued to witness sequential inflation in some key raw material inputs, such as copra, which was further heightened by unseasonal rainfall patterns.
Vegetable oil prices eased following the cut in import duty by the government, and crude oil derivatives remained range-bound, it added.
Gross margin is expected to be under "incremental pressure, on a particularly high base and partly due to the pricing-led high denominator effect, said Marico, which owns brands such as Saffola, Parachute, Hair & Care, Nihar and Livon etc.
About the sector, Marico said it witnessed a "consistent demand pattern" in the June quarter, with improvement from the rural market.
"During the quarter, the sector exhibited consistent demand patterns, marked by improving trends in rural markets and steady urban sentiment. We expect gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus," said Marico.
In terms of channels, organised trade, including e-commerce, quick commerce and modern trade, maintained their growth momentum during the quarter.
About international business, Dabur said it expects to post 'double-digit constant currency growth', while Marico said it delivered high-teens constant currency growth, driven by broad-based growth across most markets.
Godrej Consumer faced challenges in Indonesia, the second biggest market of the company after India. It had a significant increase in competitive pricing action across all major categories, which will likely result in "flattish" volume growth.
"GAUM (Godrej Africa, USA, and Middle East) business is likely to deliver strong double-digit value growth and UVG for the second consecutive quarter. Profit growth continues to be healthy," it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Can Chyawanprash save Dabur in the age of Shark-Tank startups?
Dabur isn't just a brand — it's a slice of India's childhood. For generations, it has stood as a symbol of homegrown wellness — from the tang of Chyawanprash on winter mornings to the sting of that fiery red toothpaste and the clink of honey bottles in kitchen cabinets. Steeped in Ayurveda and wrapped in trust, Dabur became part of the family. But the world has changed. New-age challengers, digital disruptors, and cut-throat price wars have
Economic Times
2 hours ago
- Economic Times
Can Chyawanprash save Dabur in the age of Shark-Tank startups?
Dabur isn't just a brand — it's a slice of India's childhood. For generations, it has stood as a symbol of homegrown wellness — from the tang of Chyawanprash on winter mornings to the sting of that fiery red toothpaste and the clink of honey bottles in kitchen cabinets. Steeped in Ayurveda and wrapped in trust, Dabur became part of the family. But the world has changed. New-age challengers, digital disruptors, and cut-throat price wars have
Time of India
4 days ago
- Time of India
People behind the code: India Inc's blueprint for human-centered AI
Artificial Intelligence may be driven by algorithms, but its true strength lies in the people shaping its path. On AI Appreciation Day 2025, the world applauded cutting-edge models and automation. But the real story lies with the curiosity, caution, and commitment of leaders who are using AI to solve real-world problems — not just showcase its potential. Across Indian boardrooms — from manufacturing to markets, retail to risk management — technology leaders are proving what the latest research also shows: That AI's evolution is about more than capability. It is about conscious transformation. The MIT Sloan–BCG 2025 AI Global Executive Study recently found that while 72% of companies view AI as critical to their strategy, only 11% are seeing substantial ROI. The difference, researchers say, lies in how leaders build trust, ethical foundations, and production-ready systems — not just technology. India's leaders seem to have taken that lesson to heart. From overpromising to grounding expectations When Vrijesh Nagathan, Chief Information and Digital Technology Officer at Marico, began the company's AI journey in 2019, the promise was bold: AI would fix everything their transactional systems couldn't. "We assumed AI could work around inconsistent data," he shares. "But real progress came when we focused on building strong data foundations, aligning expectations, and improving governance.' That wisdom mirrors findings from the IDC AI Readiness Report 2025, which shows that organizations with robust data quality and governance are 3x more likely to scale AI with measurable impact. Today, Marico uses AI to power agility, decode shifting consumer behavior, and reimagine product innovation in the fast-moving world of FMCG. His takeaway? Start with realism, not hype. Banking on trust and transparency Financial institutions, often seen as cautious adopters of technology, are showing how responsible AI can actually accelerate innovation. "Generative AI has moved from theory to practical application," says Kishan Sundar, CTO at Maveric Systems. "It's not just about automation anymore — it's about smarter decision-making, stronger risk controls, and embedding trust into the very fabric of operations." According to the World Economic Forum's 2025 AI in Financial Services survey, nearly 60% of financial firms rank explainability, compliance, and transparency as critical to AI success — even above speed or cost savings. Kishan emphasizes the importance of balance — innovation with governance, and measurable value across customer experience, compliance, and digital transformation. From experiments to enterprise grade AI At Happiest Minds Technologies, Sridhar Mantha, CEO of its Generative AI Business Services unit, is focused on taking AI from the lab to production — at scale. "Our distinctive approach integrates domain-specific AI into the software development lifecycle," he explains. "With strong MLOps, ethical leadership, and strategic partnerships, we consistently deliver GenAI solutions with measurable business outcomes." That approach is in line with Gartner's 2025 prediction that over 50% of enterprise AI initiatives still fail to move beyond pilots — mainly due to inadequate engineering for scale and lack of robust ethical and governance practices. And as Sathya Natarajan, Head of IT, R&D at Bajaj Auto Limited, notes: "Design iterations become limitless at the speed of imagination with Generative AI. When imagination sparks innovation, Generative AI turns ideas into digital reality — effectively closing the gap between design ideation and real-world production." Human-centric innovation For Sachin Panicker, Chief AI Officer at Fulcrum Digital, appreciation means reflection — and responsibility. "We see AI not just as a tool, but as a strategic enabler of innovation and equitable growth," he says. "But true appreciation comes when we design with transparency, ethics, and humanity at the center." This reflects findings from the Stanford AI Index 2025, which reports that while 57% of people globally fear misuse of AI, 63% are open to embracing it if clear ethical safeguards are in place. Sachin and his team invest in talent development and responsible frameworks, ensuring their AI solutions empower people, rather than replace them. AI that works and thinks green Even in the high-stakes world of capital markets, AI is being deployed with a sustainability mindset. At HDFC Securities, Wilbur Pereira sees overlooked potential in AI's power to optimize IT operations. "AI can help reduce carbon impact — whether by predicting trading peaks to scale infrastructure or detecting idle computers to minimize energy waste," he says. "The most successful AI doesn't make us more machine-like. It helps us be more human." This aligns with Accenture's 2025 Sustainability Through AI study, which reports that enterprises using AI to optimize energy consumption have reduced IT-related emissions by up to 20% — proving that AI can help companies meet both business and climate goals. Appreciation with intent It's easy to get caught up in the marvel of what machines can do. But as these leaders remind us, AI is only as impactful as the intent behind it. It's not about chasing trends — it's about solving real problems, building trust, and designing a future where technology supports people, not overshadows them. Because the real story of AI isn't about machines replacing humans. It's about humans redefining what's possible — with AI as their co-pilot.
