Updated
Updated · The Economic Times · Jun 8
India FMCG Firms Hold FY27 Growth View at 8-10% as Iran War Lifts Input Costs
Updated
Updated · The Economic Times · Jun 8

India FMCG Firms Hold FY27 Growth View at 8-10% as Iran War Lifts Input Costs

2 articles · Updated · The Economic Times · Jun 8

Summary

  • Indian FMCG companies said consumer demand has largely held up despite inflation pressures that began building from April after the Iran war disrupted energy-linked supply chains.
  • Higher oil, packaging, freight and raw-material costs are driving the caution, even as companies say premiumisation, last year's GST cuts and calibrated pricing are supporting sales.
  • Mother Dairy said most dairy categories are still growing more than 25%, while Nykaa called beauty and fashion purchases "small luxuries" that have so far proved relatively resilient.
  • Crisil expects organised FMCG revenue growth of 8-10% in FY27 versus 8% last year, but warned prolonged high oil prices, weak consumption and monsoon uncertainty could squeeze profitability.

Insights

As prices rise and packs shrink, can India's top consumer brands prevent a massive customer backlash?
With war fueling inflation and a poor monsoon looming, is India's consumer economy heading for a hard landing?