FMCG Sector

India’s leading fast-moving consumer goods (FMCG) companies — Hindustan Unilever Limited (HUL), Dabur India, and Godrej Consumer Products Limited (GCPL) — are intensifying their marketing and distribution strategies amid renewed optimism in consumer spending following the recent Goods and Services Tax (GST) realignment. With lower tax rates on key essentials and a shift in consumer sentiment toward discretionary purchases, the FMCG sector is preparing for a stronger growth phase.

India’s sugar sector is once again in focus as the government considers allowing sugar exports for the 2025–26 marketing season. With production expected to reach 34 million tonnes against a domestic consumption of 28.5 million tonnes, a growing surplus is pressuring market prices and mill liquidity. The decision comes amid a lower-than-expected diversion of sugar to ethanol, intensifying inventory concerns. Policymakers are now examining export options to prevent payment delays to cane farmers and maintain price stability.

Colgate-Palmolive India, a leading player in the oral care and personal hygiene sector, reported a 17% year-on-year decline in net profit for Q2 FY26, reflecting a challenging business environment. The drop in profitability is attributed to moderated volume growth, rising input costs, and competitive pricing pressures across key product categories.

HUL Reports Moderate Profit Growth Amid Challenging Market Conditions

Hindustan Unilever Ltd. (HUL), India’s largest fast-moving consumer goods (FMCG) company, reported a 3.8% year-on-year rise in consolidated net profit to Rs. 2,694 crore for the quarter ended September (Q2 FY25), supported by improved cost management, product mix optimization, and steady demand across key categories. The company’s performance reflected resilience in a challenging consumption environment marked by uneven rural recovery and subdued volume growth.

HUL Projects Volume-Driven Growth Amid Modest Price Increases

Hindustan Unilever Limited (HUL), India’s leading FMCG player, has indicated that the second half (H2) of the fiscal year will be driven predominantly by volume growth, as pricing pressures remain subdued. With consumer demand showing signs of resilience despite macroeconomic uncertainties, HUL expects modest price adjustments while focusing on expanding market penetration and enhancing distribution.

India’s tea exports increased by 2.2% during January–August 2025, according to the Tea Board of India, reflecting sustained global demand and steady performance by domestic producers. Key markets in the Middle East, Europe, and North America contributed significantly to export volumes, while specialty teas and premium blends drove higher margins. Analysts note that consistent quality, branding initiatives, and supply chain efficiency have bolstered India’s competitiveness in international markets.

Heritage Foods Ltd reported a 5% year-on-year increase in its consolidated net profit to Rs 51 crore for the second quarter ended September 2025, supported by sustained demand in its dairy division and operational efficiencies. Revenue from operations climbed to Rs 962 crore, reflecting steady growth in both liquid milk and value-added product segments. The company’s performance underscores resilience in a competitive dairy market, driven by cost optimization and diversification strategies.

UNIBIC Foods, one of India’s fastest-growing FMCG companies, has appointed Ajay Bathija as its new Chief Executive Officer, marking a pivotal step in the company’s strategic expansion. Bathija, a seasoned leader with extensive experience in consumer goods, brings a strong track record in brand building, innovation, and operational excellence. His appointment signals UNIBIC’s ambition to strengthen its market share, diversify its product portfolio, and enhance operational efficiency in an increasingly competitive packaged foods sector.

Dabur India witnessed a moderation in its second-quarter fiscal 2025–26 sales, primarily due to consumer and retailer deferrals ahead of Goods and Services Tax (GST) rate reductions. The temporary slowdown impacted key product categories, including oral care, juices, and hair oils, as buyers awaited the benefits of lower tax rates. Despite this short-term disruption, Dabur’s core portfolio demonstrated resilience, sustaining market share across most segments.

Hindustan Unilever Limited (HUL) has announced its financial results for the quarter ending September 30, 2025, reporting a modest increase in revenue and a slight decline in net profit. The company attributes the subdued performance to temporary disruptions caused by recent Goods and Services Tax (GST) adjustments and inventory realignments. Despite these challenges, HUL remains optimistic about a recovery in demand in the coming months.

Financial Performance Overview

For the September 2025 quarter, HUL reported: